The Covid Second Wave has slowed the recovery process somewhat. A segment of prospective home buyers is taking a wait-and-see approach until the current wave subsides.
Last year’s Corona pandemic caught everyone off guard and proved to be extremely difficult for businesses and industries. During the second half of last year, the real estate industry displayed remarkable resilience and adopted technology boldly.
However, the ongoing Covid Second Wave is proving to be less tumultuous for the real estate industry because developers resorted to digitization during the previous year’s lockdown and the ensuing months, allowing them to stay in constant contact with customers, act on digital leads generated, and promise them at least a virtual experience of their future home. Several processes related to property purchases are now done online as a result of new-age technology. Because of 3D Walkthroughs, Augmented Reality (AR), and Virtual Reality (VR), homebuyers no longer need to visit houses physically.
GDP Growth Outlook of Indian Economy
The second pandemic wave has made rating agencies and thinks tanks slash growth forecasts. However, they are optimistic about India’s economic prospects. Even the rating agency Fitch believes that the second wave will be less damaging to the economy than the first. “We expect the economic impact of the latest pandemic wave in India to be less severe than in 2020, despite much higher caseloads and fatalities.” The authorities are enforcing lockdowns more strictly, and businesses and individuals have adjusted their behavior to mitigate the effects”, it was recently stated.
The stock market, with a few hiccups, has also taken the second wave in stride. Stock markets crashed last year due to a spike in viral cases, but this year they’ve been more accommodating.
This year’s industry is also slowing due to the fact that there have only been partial lockdowns in various states across the country. Although businesses face a bleak scenario, progress is underway to ensure that many business activities proceed prudently.
This year, only partial lockdowns have ensured the supply chain of raw materials for developers who do not anticipate significant delays in the delivery schedule of their projects. Even migrant workers are staying put this year, assuming developers and contractors take sufficient safety precautions.
People are becoming more aware of the importance of owning a home as a result of the pandemic. The current low-interest rates on home loans make it easier for them to do so. With work-from-home (WFH) continuing, many employees of companies have returned to their home towns and now want to buy a home for themselves there, as the WFH regime does not appear to be coming to an end anytime soon. This is causing a shift in buyer interest in Tier II-III cities.
There is no denying that both new product launches and sales figures have suffered in the last 5-6 weeks. Vaccinations in the coming months can spark a movement, helping the industry reach a sustainable growth rate.