Experts believe that the Covid-19 global pandemic has altered the way we live, work, play or learn. As opposed to low expectations and fears, real estate in India after the COVID catastrophe will most probably sustain, survive, and gradually thrive in terms of an asset class. However, the real estate scenario is bound to look quite different. Decentralization, restructuring, and redistribution will be the chief themes highlighting this change.
The real estate sector in India has suffered a major setback all through the first wave and even the second wave of the pandemic, however, the demand for housing in India has revived. Available data has revealed that the demand and supply for housing remained adversely affected during an initial couple of months of the quarter, April to June of 2021, when most Indian states operating were under partial lockdowns for containing the spread of the COVID-19 second wave.
However, new launch and home sales numbers started to go up in June as states started the opening-up process gradually. For instance, 2 BHK for sale in Mulund in Mumbai have gone up. Here are some ways how the pandemic has altered the real estate scenario in India.
The home is naturally gaining more importance in comparison to the workplace and influencing real estate choices and overall urban development. The positive thing about India is that here long-term demand for housing trend still remains secular because of a young population that is entering the workforce in impressive numbers. During the past few years, we have witnessed a gradual mindset shift among first-time property/home buyers from preferring rental homes to buying homes. More and more young professionals are looking for 2 BHK flats.
Thanks to the COVID-19, now the younger generation is opting for owning a home instead of renting a place. Hence, the demand for 2 BHK Apartments is rising. Real estate investments today are best for providing a greater sense of security and safety in times of a crisis like the pandemic, financial assets seem to be under tremendous stress. Moreover, extra space in the house to meet work-from-home mandates is a crucial factor as well. All this has resulted in a rise in demand for 2 BHK flats in Mulund, Mumbai.
The commercial office space sector was thriving before the coronavirus breakout. The impact of COVID-19 on this sector seems to be severe thanks to a drastic reduction in space requirement because the Information Tech firms have adopted the more favorable work-from-home model that is currently becoming their long-term stratagem. Office space that was being used by small businesses and startups before the pandemic is encounter challenges because of funding issues. Today, health and hygiene are given more priority than space efficiencies. Today offices are being redesigned to suit the post-COVID-19 world.
The Retail real estate sector has undergone a massive change post-COVID-19 with a dramatic shift to online shopping. It was a major blow to the physical stores and shopping malls. Tenants in the shopping malls are moving out once their leases are expiring because the astronomical rental costs are no longer viable for them. There has been an inclination towards Chandigarh-type markets having SCOs or shopping complexes like New Delhi-based Khan Market.
Now is the time to behave wisely and thoughtfully. Once you weather the storm, real estate will emerge stronger as predominantly an asset class.