In a strange turn of events, after everyone was wary of investing in real estate because of the imminent threat posed by the arrival of the second coronavirus wave, the industry boomed, with sales reaching pre-COVID levels within months of relaxation of the lockdown.
The industry endured highs and lows as a result of COVID-19’s unexpected entrance, which left the sector unprepared. Although the second half of 2020 showed amazing resiliency, the year ended on a new low.
Experts have expressed optimism for the year 2021, citing the country’s aggressive vaccination campaign. They anticipate that the industry will expand in 2023 as a result of the recovering tendencies of 2021.
Experts have predicted a bullish impact on the business as a result of the low lending rates, which has helped to reverse COVID-19’s lulling effect. Similarly, it has aided in the growth of sales in the country’s major cities. Even in an unstable economy, the shifting dynamics in favor of real estate might be linked to shifting consumer sentiments that were influenced by the uncertainty of renting housing.
In some ways, the global pandemic has been a blessing in disguise for real estate, allowing the industry to solidify its position in the residential market. Millennials, in particular, who previously preferred to rent, have begun to express a strong interest in purchasing their own home.
As a result of the pandemic’s substantial lifestyle changes, which required individuals to stay at home for extended periods, the way people used their living spaces altered dramatically.
Also when the remote working culture became widely accepted, people began looking for homes with extra room or space that could be used as an office or study.
Furthermore, since people’s movement was constrained to their houses, they began looking for residences that included entertainment, fitness, and recreational areas. Similarly, as a result of the pandemic’s devastation, there was a pressing need to purchase properties in clean environments.
Real estate evolved as a financially reliable asset for investment, delivering steady returns in comparison to other risk-induced fluctuating possibilities after the value for future stability in uncertain times was established.
Real estate’s potential for resuscitation was recognized by the government, which devised progressive measures to help the business thrive. To boost the economy, the government took steps to eliminate tax incentives and create a favorable climate for property purchasers. Low-interest rates on home loans have enhanced the affordability of housing invariably.
Despite the gloomy lockdown, these elements have played a significant role in reviving the industry’s fortunes. According to current data, the Indian housing sector made a significant comeback in the third quarter of 2020, in September, with sales and new launches rebounding by 65% and 79%, respectively.
In light of the industry’s overall picture, the sector’s future appears to be bright. In a favorable move, real estate sales are likely to reach a peak in a few years.