The COVID-19 pandemic had suddenly taken the world by surprise and has proven to be devastating for all businesses and industries. While all the other sectors were struggling to cope with the same, real estate sector faced the situation with resilience and with the help of advanced technology, did a good recovery in the second half of the last year.
The ongoing second wave of coronavirus is proving to be less troublesome for the real estate industry as developers had taken up digitization during the last year’s lockdown which is helping them to be in constant touch with the customers where they are being proactive about the digital leads generated promising at least a virtual experience of their future home.
This all has been possible as the industry is evolving and assimilating has been involved in new-age technology and has transformed many processes involved in property purchase deals online. With the help of technologies like 3D Walkthrough of the properties, Virtual Reality (VR), and Augmented Reality (AR) the players in the industry have removed the need for homebuyers to physically go and check the properties.
GDP Growth Outlook of Indian Economy
Many global rating agencies and financial think tanks predict that the Indian economy will perform better despite the second wave of the pandemic. Rating agency Fitch is optimistic and expects the shock to the economy due to the second wave will be less severe even though the fatalities and cases are high in number as the authorities are implementing lockdowns more strictly and that the companies and individuals have adopted the lockdown behavior which helps to cushion the effects.
The real estate industry is in a slowdown mode this year also because of the partial lockdowns in various states of the country. Although the business scenario is grim currently, there is some optimism regarding many business activities to go on prudently.
There is not much delay in the supply chain of raw materials for the developers and the delivery schedule of their projects is on time, even though there are partial lockdowns. Even the migrant laborers are continuing to stay at project sites this year, as strict safety measures are put in place by the developers.
The pandemic has led to the realization of the importance of having a home among the people. The current low-interest rates for home loans are also making this possible easily. With work-from-home (WFH) continuing, a lot of employees of companies have moved back to their home towns and now wish to buy a home for themselves there itself. This trend is leading to a shift of buyer’s interest for Tier II-III cities as well.
It is certainly true that in the past 5-6 weeks, both new launches and sales figures have been affected. But if the current vaccination rate picks up in the coming months, it will help the industry reach a decent growth trajectory.