The Future of Indian Real Estate after Lockdown 2.0 - 5 Factors that will Redefine Real Estate

 Despite looking for a monumental leap at the beginning of the year, lockdown 2.0 has once again stalled growth in Indian real estate. During the lockdown, there were virtually no sales, despite some attempts to sell digitally.

 The silver lining is that COVID cases have drastically been contained, thanks to the efforts by our medical professionals, frontline workers, and NGOs. The economy is expected to reach normalcy shortly as business and commercial activities have started to revive. 

 Meanwhile, real estate sales have also started to revive and numbers are picking up. Outlined are 5 major factors that will redefine Indian real estate after lockdown 2.0
 

 Plotted Developments: The demand for plotted developments is on the rise after the COVID-19 crisis. Many households will prefer plotted developments in suburbs either as in gated communities or as standalone units. Plotted developments offer privacy and limited social contact without comprising the sense of community and belonging. It also offers enough room for customizing the design as per one’s taste.

 Second Homes/ Farmhouse Living: Having a 2nd home/ holiday home has always been in sync with Indian ethos. A place near greenery and nature is always a great escape from the hustle and noisy city life. Since the previous year, the demand for second homes and farmhouses are further rising. After lockdown 2.0, many organizations will extend WFH, which will result in accelerated demand for 2nd homes and farmhouses in places such as Kajrat, Alibag (Mumbai), Nandi Hills (Bangalore), Solan, Dehradun, Rishikesh (Delhi-NCR). Besides swanky expensive 2nd homes and farmhouses, many affordable options are also coming up.

 Rental Markets: After the approval of the Model Tenancy Act (MTA), institutional investments in the rental market will increase. This will give a big push to organized rental housing. The growing population of students, migrant workforces, working couples, etc will catalyse increased investment in rental housing.

 Co-Living: The millennials in India (aged 20-30) will drive the co-living market in the country. Both rentals as well as ownership-driven co-living models, will grow in India, egged on by demand for affordable, sustainable, and quality living. Co-living providers will provide stricter hygiene norms to provide living that is safe and secure but at the same time engaging and convenient. Like-minded community clusters of students, professionals, artists, freelancers, etc. will evolve in these co-living habitats.

 Warehouses: Internet consumers got a big push last year, giving rise to increased demand for warehouses, fulfilment centres, service centres, dark stores etc. In the 2nd instalment, the lockdown has further given a facelift to the e-commerce industry and demand for such commercial assets are increasingly going to rise. Various categories of digital commerce such as grocery, pharmacy, F&B, essentials, furniture, etc. are on an upswing.