The COVID-19 pandemic has changed how the world operates. COVID-19 not only leads to major loss of human life throughout the globe but also offers an odd challenge to public health, food systems and has permanently changed the way we live and work.
Our homes, offices, public places, every part has been impacted by the virus. Every sector of the economy, including the real estate sector, has been hit by the virus and subsequently the pandemic.
As new trends arise, the realty market will never be the same again in a post-COVID world.
Let’s take a look at the new trends Covid-19 has brought on in the real estate industry.
Owning a dream home
Covid-19 has changed the perception of the buyers. The concept of owning a home has gained importance despite an unavoidable economic slowdown. This change has been seen due to various reasons like landlords forcing tenants to vacate, poor access to green spaces and high density within the existing apartments, low home loan interest rates and better deals.
Owning a home also makes one feel safe and protected. Hence, people who were previously comfortable living in rented accommodations would now like better to buy homes.
Adoption of digital tools
Akin to other sectors, real estate has also initiated the adoption of digital tools to reduce its operational cost and improve end-products to deal with the challenge posed by the COVID-19 pandemic.
Technology can help developers improve productivity with time, cost and quality across the value chain, especially in designing, planning, budgeting and executing on-site projects.
Builders who accept the adoption of digitisation in virtual tours, digital transactions, capital deployment, property management, virtual tours and online customer bookings will find themselves as the leaders of change. Innovations with respect to Artificial Intelligence (AI) & Virtual Reality (VR) in this sector are accelerating more opportunities and enhanced customer experience.
Lucrative property deals
The varieties of deals and realty offer that home buyers are getting now are usually observed only during the brief festive period.
Though, better deals are being offered in such scenarios. Buyers are getting sweetened deals such as free parking or waiver of charges, or staggered easy payment plans.
It’s an ideal buyer’s market, wherein lucrative offers can be availed and negotiated in the primary market. In addition, cheaper interest rates on home loans add to the lucrativeness of the opportunity to buy now, as the interest rates are at a level from where it is only going to move upwards.
Renewed commercial realty offerings due to WFH culture
One year into Covid, working from home has become a lifestyle for all of us. Several builders and developers are now looking to capitalise on this trend. Specially designed WFH spaces are deemed to build with trendy home decor ideas.
On the other hand, commercial real estate is ready to undergo a significant transformation; advancing beyond just ‘value proposition’ and ‘location’, the industry is now concentrating on subtler details such as ‘customer experience’ and ‘transparency’.
Social distancing has shifted the trend to contactless technology, so business models will now be backed by technological offerings that are tailor-made for customers.
Bid adieu to the cities
Covid-induced remote-working culture has pushed people to abandon metros. Employers and employees are increasingly experimenting with WFH, and have realised gains in terms of improved efficiency, better levels of satisfaction, work-life balance, saving in time spent in commuting and saving in expenses towards office space.
Remote working as a trend is here to stay, and keeping that in mind, this trend will reduce the need to buy a house close to the workplace. As a result, people will be more open to moving to peripheral locations for better affordability, abandoning metro cities and moving towards lesser populated tier 2 and tier 3 cities.
Post-COVID-19, there is going to be a change in how people think, live and buy. The purchase behaviour and sentiment of buyers have been definitely impacted. Job insecurity, reduced salaries, decreased spending, savings, and business volumes have all disrupted cash flows to the real estate business. On the positive side, the real estate sector has been quick to react to changes and adjust to new technologies; this is apparent in the digitisation of several processes.
With new technology platforms and recent investment avenues, the Covid-19 pandemic has brought a massive shift in investment preferences that will continue to outlive the pandemic.