Friends, the real estate industry is a pillar of the economy. It is one of the top three sectors which employs the highest number of people in the country, after the manufacturing and agriculture industries.
With the pandemic, there are doing to be a host of changes in this sector. While the immediate impact may be a slowdown in construction, there are a lot of opportunities that will come up in the coming days.
A lot of people will consider moving to smaller spaces to save costs, and this will mean a restructuring of office space to ensure maximum space utilization meaning more work for office designers and labor.
Real Estate companies will have to come up with smarter offerings for corporates as well as residential clients.
In the residential space, people will want smaller houses, which is quite common abroad. There will be a boom in the re-designing industry, and remote work systems will be much in demand. Functional internet connectivity will be an absolute necessity everywhere.
Compact, smaller residential complexes that are self-contained with all kinds of facilities will be simplified since people will not want to travel far and will want to avoid intermingling with crowds.
Since dependence on maids and servants is going to be significantly reduced, cleaning, sweeping, and general maintenance will have to be done by the owners themselves. So there will be a preference for small spaces. While there will be a massive demand for affordable housing, this will also mean that they can now afford more premium places since the area will be smaller. In developed countries, this is already happening if you look at places like New York, London, or Paris.
Lockdowns will be a part of our lives now, depending on the containment or spread of the pandemic. In such cases, people will prefer remote locations with all-around functional connectivity. For many businesses, you don’t need to be physically present and can operate from home. The outskirts of cities, which as less populated and less polluted, but provided with excellent connectivity, will be much in demand. Earlier, these used to be second homes, but now they will become primary homes since people would prefer to stay away from crowded and populated areas.
With a lot of the NRI population heading home since most developed countries are facing the brunt of the COVID-19 situation, there will be more demand for property in India. Secondly, the world view of China may now change, with a lot of companies wanting an alternative location for their businesses. With India offering cheap but skilled labor, better weather, and the intelligent handling of the pandemic, it will be a preferred location for such companies. All this will result in higher demand for commercial and residential space in our country.
Clients will be cost-conscious, facilities conscious, and so profit expectations will need to come down because the buyer will buy only if he is benefitting. But the volumes will more than make up for this.
Hopefully, the government will consider the fact that growth in this sector will mean overall growth for the economy, and come up with a support system that will give a tremendous boost to the Real Estate industry.
Thank you for reading this post, should you have any suggestions or feedback, please feel free to share your thoughts in the comments below.