The second covid wave struck India with a vengeance never seen before. The assault came like a bolt from the blue when performance of major industry sectors was looking up and every industry was on the brink of a good revival. Real estate in particular had a fantastic run in Q1 2021, thanks to the prevalence of attractive govt incentives and the return of homebuyers to the market.
While real estate developers were assertive enough of a bountiful summer, looking at the stupendous performance in the last quarter, the sudden emergence of the second wave casted a shadow on their expectations.
If statistics are to be believed, sale of housing units rose by 21% across top 7 cities in the first quarter of 2021 to 1,05,183 units versus 87,236 units in Q1,2020. Unsold inventory levels were receding, and new property launches were in the offing. Demand for affordable and middle-segment housing was at an all-time high and expectations were ripe that the subsequent quarters would also pave the way for a splendid recovery.
But the situation post outbreak of the second wave was disastrous. Acute oxygen scarcity, spike in death rates and an innate fear among the masses, led most homebuyers to shelve property buying for the moment. Demand for homes crawled to a standstill and real estate developers feared the worst looming before their eyes.
Digital real Estate platforms a ray of hope for realtors
However, a contrarian sight was noticed on online real estate platforms where inquiries about mid-segment and luxury properties kept pouring in. The opportunity of getting good deals when the market is at its nadir seemed propitious for many serious end users and NRIs. With the number of visits to project offices having shrunk due to the pandemic, this tranche of homebuyers has trooped on to digital real estate platforms to invest in a home.
The ease of buying a home on digital real estate platforms without moving a leg has resonated well with homebuyers, and it has become a runaway success with NRIs. Real estate developers reiterate that closures are occurring at a much faster rate, with homebuyers taking full advantage of the low-interest rates.
A lot has changed in the real estate scenario post covid, the most significant change being the wave of transparency that has ushered in the property market pulling end users back to the market. End user-driven markets are witnessing promising traction during the second covid wave, keeping homes alive for real estate developers.
Luxury homes sales thrive, driven by HNIs and NRIs
Ease of purchase, affordability, and the growing importance of spacious environs have kept the demand for luxury homes stable, in spite of the ongoing second wave. Looking at how the ferocious second wave has mercilessly taken away thousands of lives in a flash, NRIs have resorted to buying ready-to-move second homes far from city limits, to make themselves future proof.
Developers have tweaked floor plans and designs in accordance with the post-covid expectations to effect efficient utilization of space; ensuring that homes remain multi-functional, have dedicated workstations and recreation pads to unwind.
Real estate developers attributed the property sales in the luxury and ultra-luxury segments to the convenience of online property buying. Homebuyers are glad at taking virtual tours of multiple properties through VR and 3D interfaces where they can survey every inch of the property and enjoy an immersive experience. The digital post-sales process where real-time inventory blocking engines integrated with multiple payment gateways and secure transaction enabler tools like digital signatures to complete the buying process, has beyond impressed luxe buyers too.
The second covid wave may prove to be a dampener for the real estate sector, but it’s just a temporary blip on the real estate market. The second wave on the wane now, property buyers of all categories will throng the real estate market, given the huge pent-up demand and the newfound willingness to buy residential real estate.
