The NEW DYNAMICS of REAL ESTATE

Real estate has always been a volatile sector in nature, but it has survived challenges such as demonetisation, various policy changes, and a worldwide recession over the recent years. Then 2020 brought with it Covid-19, one of the biggest challenges thrown at almost all industries, including real estate. Owing to the global pandemic, the industry suffered a massive downfall. While the first lockdown and rise in cases was the initial blow, it was soon followed by a more severe second wave. Throughout this time, most workplaces had their employees working from home that led to a dip in commercial real estate. However, the sector stood strong with industry leaders taking charge to revive things. Industry veterans and their teams prepared well, had the willingness to work with restricted mobility and access, and put in their efforts towards innovating and dealing with this latest challenge.

The government did their bit with the introduction of certain policies and subsidies, and this also helped the real estate sector bounce back. While the commercial segment is now on its way to recovery, the demand for residential spaces has gone up too. However, Covid has brought about some changes in residential real estate as people's needs and preferences have been altered since the pandemic. Here's a look at some of the key changes in the realty market in recent times:

Demand for spacious homes

The pandemic has enforced changes on the design level in real estate. Since work from home continued, people needed to shift into bigger spaces where the entire family could carry out everyday activities and still have their own personal corner for work. The need for additional space and green areas in well-ventilated homes led to provisions of additional and spacious rooms along with balconies in newer residential projects. This need for holistic living also fuelled the demand among homebuyers for villas, cottages, and large apartments in townships with access to all necessities.

Rise in demand for owned homes

While the demand for bigger residences increased, many people also opted for 1BHKs, studio apartments, and compact residences. The primary reason behind this was that people preferred to move into their own homes instead of staying at rented houses, and such homebuyers were willing to start off with smaller residences in well-equipped townships. An increasing number of people are buying homes to live in themselves, and not just as an investment.

Digitalisation and innovation by real estate brands

The lockdown followed by the dip in sales pushed players in the industry to innovate and share out-of-the-box ideas to reach out to potential buyers. Brands started focusing on advertising, marketing, and social media promotions by creating an online presence and offering virtual tours, e-meetings, 360-degree videos, and more. This also opened the realty market for potential buyers on a global level. Switching from outdoor advertisements to OTT platforms, physical walk-ins to digital tours, television commercials to influencer campaigns on social media were some of the major changes adapted by real estate organisations in these two years.

Preference for township living

With a long-term perspective in mind, homebuyers in recent times are preferring to stay in integrated townships rather than in single apartments. Gated communities are gaining popularity over single buildings in urban areas as they offer not only a home but an entire experience of a luxurious lifestyle with top-notch amenities, security, proximity to like-minded people, and green surroundings that offer a pollution-free, serene ambience. Such townships offer thoughtfully planned and designed homes with a touch of sophistication, which is exactly what buyers are looking for today. 

Increase in millennial and women homebuyers

Unlike the older times, millennials and young adults are understanding the need to save and invest well. In addition, the industry has witnessed a trend of more women homebuyers. The urge to be financially independent and capable have led the younger population and an increasing number of women to invest in real estate, and they received the required support from banks and financial institutions offering payback schemes, easy EMI options, and other incentives for homebuyers. In fact, there are various special offers and leases for women provided by the government as well as by private institutions.

The government also supported the real estate sector in bouncing back from the pandemic-induced lull with the gradual introduction of policies and subsidies. There were also other measures introduced, including sector-friendly policies such as less stamp duty, exemption from taxes, and low-interest rates on home loans. Moreover, the quarterly RBI policy has maintained the status quo on rates to boost the speed of recovery and avoid further stagnation in the economy.

The previous two years have not been easy, and we have witnessed the unfortunate repercussions of Covid-19 on human lives, businesses, and economies. But at the same time, we stood together and focused our efforts on rebuilding. The real estate sector has bounced back strong, and we are all set to adapt to the new dynamics brought about by the times.

- Prashin Jhobalia

VP Marketing, House of Hiranandani

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