By Rajat Goel, Joint Managing Director MRG World National lockdown implemented because of pandemic COVID-19 has affected most of the sectors and industries including the realty sector. Although, there is no doubt in saying that every crisis comes with an opportunity and Covid-19 looks no different. According to the realty experts, the residential sector will see a good growth post-COVID-19.
The positivity stems from the fact even during the complete lockdown realtors were able to generate inquiries and sold a substantial number of units. Some new trends have started taking shape promising a fresh demand from people who were acting as fence-sitters all this time. Amidst the key distinguishing trends, the residential sector is ready to undertake a growth path with remarkable choices of ‘home ownership’ on offer, especially for the millennials.
The global coronavirus has changed the thought process of millennials who have started taking real estate as the best vehicle to invest in. It is a sense of security linked with physical assets & lower home loan rates key factors deciding change. Among all the buyers who earlier were not in a mood or haven’t decided in to purchase a home but have now changed their mind during the lockdown period.
Demand for healthy living The latest target of the real estate sector Post-COVID would be to modify the projects with amenities and services that help in providing the healthy lifestyle to the residents. The design and planning of the project will be done solely keeping in mind the requirements of the buyers who have become more health-conscious and are concerned about the hygiene quotient of their living spaces. Imagine now having a world-class hospital inside the residential project or a housing project with a weekly visit of doctors for regular check-ups. The trend of having more open spaces with astute planning for greenery will also pick up the pace.
The needs will now be completely different which are in most cases influenced by the global pandemic that people now have faced. Almost all of them have global exposure and have seen some of the best housing projects in other countries that take care of a healthy lifestyle. The millennial generation will be specifically more concerned and might also take it as a societal requirement apart from their need for the amenities being provided.
The demand for the facility of organic farming inside the projects that can assure the residents about the health of the vegetables that they are consuming is likely to gain momentum. People will be ready to spend an extra buck if they get facilities that help them value their lives. The generation that is going to be specific about the demand would be the people falling in the age group of 25-35 years. Developers have to accommodate health facilities – jogging tracks, gyms, sports arena, etc — in their projects to gain immediate acceptability of the projects.
Housing societies will gain The social distancing, which we are practicing today to curtail the impact of Corona Virus is likely to become a lifestyle for many. The housing societies will undergo a massive change over the next few years. The upcoming societies will need to in-build a system wherein social distancing will be a norm, but without compromising on benefits that group housing societies generally offer.
The pandemic may turn out to be a blessing in disguise for organized players as the demand for housing societies may go up with more and more people are likely to provide enhanced importance to cleanliness and hygiene. Developers will start offering services, which will add to cleanliness and hygiene. Like hospitals and hotels, developers too may consider having separate elevators for delivery boys and maids among others. Even more, some developers may even utilize their own service staff for delivery and other staff beyond a particular point. The new practices will become a big draw amongst prospective buyers. The developers would also increasingly focus on fumigation and sanitization of open spaces and green areas falling with their housing societies.
The pandemic has certainly brought short term pain for the economy as a whole, but it may just turn out to be a watershed moment for the real estate sector. For before the tide turns for better, we need to wait for some more time for the dust to settle down.
Demand for affordable luxury The demand started increasing post-2007 when this concept was first introduced in the real estate sector. Luxury projects have their aura with the host of amenities that they offer, which are enticing to the middle class also but the pricing becomes an issue for them. Realizing the need to incorporate some of the luxury facilities in affordable projects, developers started catering to the increasing demand, which also helped them get good responses.
People are realizing that having a simple home is not actually their wish. Everyone dreams of luxuries attached to their abode where they spend quality time with family. The sector has noticed this demand and is coming up with more projects that are a cross between affordable and luxury. Homebuyers were not buying properties because they were being either offered affordable homes or luxury homes whereas they wanted a mix of both. Now, realtors have sensed the demand and are planning projects accordingly.