COVID-19 impact on the Real Estate Industry.
If there is another asset class for Indians that holds sentimental importance; it's a house after gold. Most Indians are waiting for a chance to purchase a residential home whether it's for acquisition or end-use. The Coronavirus pandemic has got them all. Not only have the rates fallen in regions, but the pace of home loans is now at historic lows.
The advent of the COVID-19 led to a complete shutdown of the economy. Stock market uncertainty is on the rise and buyers are searching for more stable investment opportunities. The crisis has emphasized the need for shelter and protection in challenging times. The pandemic has opened a new phase in the disposal of immovable property that has been underused to date. Most people's tastes have changed, and they realize the value of owning a home that will boost demand for real estate in the post-COVID 19 worlds.
Real estate does not deliver instant returns, but it is probably a better option in the current scenario since it is less risky than market-driven investing. Demand for residential real estate is expected to grow as millennial is the main drivers of demand; their expectations are now determined by the uncertainty that exists. Any of the reasons contributing to higher spending are as follows:
1. Technology adoption: There is a big change to online platforms; with people who preferred offline property searches, online real estate platforms now tend to search their dream homes. There has also been a market for virtual tours or visits in which home buyers chose either to make a shortlist or to finalize their homes on virtual tours.
2. NRI Investment: The scale of the NRI investor market is massive in the spectrum of inexpensive to mid-size housing. The dropping rupee rate raises competition in the purchase of residential properties between NRIs. In the post-pandemic world, the opportunity to invest in the most concrete and satisfying commodity has never been stronger.
Pre-COVID, the investment priority was on commercial property, while the co-working companies experienced explosive growth. Market behavior is shifting with the current situation and millennials are trying to purchase residential properties in the middle and affordable category.
So if you're financial wellbeing without work loss risk, it could be a smart decision to buy a house. Although prices may continue to decrease, with the economy starting to go back to normal after a few months, the downturn will not be significant. Timing is perfect, since rates around global markets are at their lowest, and builders can secure a decent bargain quickly.
The outlook will rely strongly on government assistance and economic stability, and the markets will ideally be stable for the holiday season of 2020. Developers are hopeful about the coming quarters that will see a bright, challenging outlook.