Fate of Real Estate Business Post COVID-19
Pandemic COVID 19 affected the entire world, most of the stock markets and business spectrums. The present 21 days lockdown and curfew at India for self-isolation and social distancing to control it, might lead to a change in the social scenario of reduced spending and increased saving habit among Indians post COVID-19. While some niche real estate segments like villages and Hill stations are likely to see a boom because they are the best place for social distancing which is the need of the day, analyzed by Hills & Wills, best real estate company in Kodaikanal.
COVID-19 also known as CORONA virus is not an epidemic, it is a pandemic which has affected mostly all the countries except few countries in Africa. Over 0.7 million people affected and the death toll crossed 34,000 as on today. Probably this is the major pandemic known to mankind in the recent past.
There are many questions in front of mankind like
How long it’s going to take, to subside and what will be the final toll?
When will be a vaccine or cure be invented for it?
Most importantly, what could be the social, business and industrial scenario post pandemic?
No one knows the answers to the first two questions but certainly, there will be impact on social and industrial behavior. The stock markets of many countries are on a sharp decreasing trend, export and imports are stalemate among countries, manufacturing industries across many continents are closed and economies of many countries become complex or collapsed.
What could be the impact on Indian real estate?
Hills & Wills a premium property management company exclusively deals with South Indian hill stations has studied the scenario which could be useful to the entire Indian real estate industry.
Post pandemic scenario of Real Estate in Metros, Cities, and Town in Plains
1. Saving habit of Indians was one of their biggest strength in the past. But last few decades it has changed a lot and people migrated to spending habits. There will be a definite change in this because people would have realized the need to have savings to manage these kinds of scenarios in the future. This will have an impact on the category of peoples who invest on their second home and additional properties.
2. People who couldn’t manage the complete lockdown for weeks financially will start trying to sell their properties to manage their loans and debts. This will lead to flooding of properties for sale and it will become a strong buyer’s market. There is every chance for the price drop.
3. There is an increased awareness about two factors called “Self Isolation” and “Social Distancing” among Indians in the last 1 week, which is considered to be the only way to fight this pandemic and strict laws have been enforced by both State and Central Governments in India to achieve it. This will lead to a demand for independent houses in the future and many may not prefer apartments. Apartment prices will be cheaper and the builds having unsold projects will face a tough time.
4. There could be a possibility of migration towards villages by people who couldn’t manage their business and lifestyle in cities. This will lead to property rental drop in Cities and Metros.
Post pandemic scenario of Real Estate in Villages
COVID-19 pandemic has created panic and fear among all category people, especially in the mind of people who live in Metros, Cities, and Towns where the population density is more and the chances for self-isolation and social distancing is less.
People will understand the value of the village lifestyle and the need to protect and maintain their village properties to face these kinds of pandemic lockdowns or war scenarios in the future. Because the cost of living in a village is comparatively less and the village houses and properties are normally big enough to maintain the social distancing. This will boost the demand for village properties and the real estate segment there considerably.
Post pandemic scenario of Real Estate in Hill Station
What the people will do who do not have village nativity or properties there?
They will try to have a second home where they can get the space for social distancing. The choices to them are to buy a property on the outskirts of cities or at hill stations. But the hill station property will get the priority in their mind. The reasons are
• Spending a couple of weeks or months will be an enjoyable experience in a hill station rather than at a home in the city outskirts.
• Vegetables and fruits are cultivated in hill stations and available to the local residents freshly and plenty even during today’s scenario.
• Investing in a hill station property also gets social status edge to them.
Hence the real estate in hill station will be on upbeat after this COVID-19 pandemic scenario. The current pandemic paved away so that the people are expected to come to hill station not only for enjoying their holidays but to buy properties for self-isolation, social distancing from their mainland as and when any such pandemic outbreak or during natural calamities.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
The author is a Chartered Engineer with international experience in diversified fields at Europe and Asian Countries. A well known Advisor in Business, Marketing and Real estate domains in South India and working at BizChanakya – A leading Business Consultancy having its headquarters in Chennai.