With the breakout of Covid-19 bringing the world to a halt, the year 2020 was undoubtedly unprecedented. Many people were taken aback by the severity of the virus, which caused scarcity in healthcare systems and a significant drop in the global economy. With the pandemic’s resurgence, the pandemic continues to wreak havoc all over the world. However, while the previous year brought many challenges and a great deal of distress, it also provided numerous opportunities to improve and innovate. The real estate sector benefited greatly from the pandemic in more ways than one.
In fiscal year 21′, the real estate industry increased by 19% in a single year. Over $6.27 billion was invested in the sector. Foreign investors contributed nearly 93 percent of total private equity funds. Foreign investors see India as a profitable investment opportunity in the real estate sector. Many people have realized in the last year that there is no place like home. Many NRIs want to invest in real estate in their hometowns. The pandemic has definitely shaken our sense of normalcy and made many of us appreciate the value of a home.
When we are forced to stay at home, having a place to live that we can call our own is a huge benefit. Many people are looking to invest in properties in India in order to feel secure. Another reason why people are interested in investing in real estate in India is the strengthening of the dollar and dirham against the Indian rupee. As a result, India has become a highly competitive market. The implementation of RERA has also increased the dependability of properties and developments in India, attracting both Indian residents and people from other countries. While the reasons for buying a home in India vary, it has certainly been a welcome change for the industry.
Shift to digital
Another benefit of the pandemic has been innovative technological advancements in the real estate sector. While India was already on the verge of a digital revolution, the imposition of the lockdown hastened the process and forced realtors to think of creative, out-of-the-box ways to attract customers. Sales and revenue generation have now moved to a digital marketing platform. Realtors have bridged the gap between consumers and the organization by providing virtual walkthroughs and digital tours of properties. Social media platforms have also become an excellent way to reach out to a large number of new potential customers.
Realtors are also investing in augmented reality and virtual reality in order to take advantage of technology. Webinars have also been a useful platform for providing viewers with a comprehensive view of not only the properties but also the operation of the organization. To maintain their market position, realtors will need to strike the perfect balance between traditional methods of selling and the use of advanced technology in the aftermath of the virus. This also broadens the scope of innovation and modernism in the overall approach to home buying.
Increasing need for a permanent residence
The pandemic was certainly a wake-up call for many of us. It reminded us of how much we take for granted, whether it’s our health, our families, our friends, or even our homes. Having a roof over your head is especially important in these uncertain times. With everyone cooped up at home, having a home that is spacious and meets your basic needs is critical. Due to the high prices of properties prior to the Covid-19 pandemic, renting homes was a popular trend in comparison to buying homes.
This quickly changed after the spread of the Covid-19. With the rapidly changing landscape, many people are looking to invest in a home as a long-term investment. Price reductions have piqued the interest of a large number of millennials in homeownership. Another factor contributing to this shift is a drop in home loan rates ranging from 7.15 percent to 7.8 percent. All of these factors, when combined, have greatly benefited the real estate industry.
Because of the increase in sales as a result of these factors, the real estate sector has seen a significant increase in funds when compared to the previous fiscal year. In the post-Covid-19 era, the real estate sector appears to have a bright future. A new-age real estate market governed by sustainable, innovative, and advanced choices will experience a notable rise. Although 2020 brought many pitfalls, it also brought many opportunities, pushing the industry to progress and evolve. As a result, while many may believe that the year was a loss, it was also profitable in many ways.