Year Ender 2020 for Real Estate: The year 2020 has proved to be a challenge for every individual and sector. Due to the COVID-19 epidemic, some such situations have arisen, which hardly anyone has remained untouched. The lockdown imposed to prevent the outbreak of the epidemic put a brake on activities across the world. Every sector of the country was affected by India’s lockdown, including real estate. The year 2020 was very challenging for the Indian real estate industry. At the beginning of the year, the glimpse of the slowdown of the last several years in the industry was clearly visible. Then whether it is for the prices of houses or the rising inventory. High house prices prevented home purchases. Then came COVID, who completed the right task.
Manju Yagnik, chairperson of Nahar Group and senior vice president of NAREDCO Maharashtra, says the country’s real estate sector has seen a good recovery after the April-June quarter after the lockdown opened in a phased manner. The last two quarters saw a spurt in the sale of homes in major cities due to continuous efforts by all stake holders with new policy measures, increased liquidity, offers and plans.
Demand for the house on rent decreased
Krish Raveshia, CEO of Aglow Realty, says leasing activity was negatively affected as soon as the epidemic hit India and forced companies to allow their workforce to work from home. This led to a 36% drop in leasing activity in the first half of the year. Businesses suffered due to the lockdown, which forced them to renegotiate rent. The epidemic forced developers to adapt to the digital mode to reach their potential customers. Thoroughly digitizing sales and marketing strategies not only helped save costs but also ensured targeted reach.
It further stated that the work from home trend was considered as a potential risk to commercial real estate but sentiments are stable as unlocked measures allow offices to summon employees to a certain extent. Commercial real estate, office space agreement has a long-term nature and some quarterly constraints may not affect it in a big way. Work from home can only be a transient phase, but face-to-face meetings with customers, interactions between employees cannot be replaced by long-term virtual tools.
What hope about 2021?
According to Manju Yagnik, the coming year 2021 will see an increase in sales with more interest from buyers to buy homes. The vaccination program, which starts soon after India’s approval of the Corona vaccine, will boost the confidence of home buyers, which will bring more enthusiasm in the market. We want to see support from the government in 2021 on policy, taxation, stamp duty cuts and circle rates. We expect the lowest interest rate and easy liquidity system to expand to continue to positively promote the vision of ‘Housing-for-All’ in the coming year.
What will be the new trend
According to Rveshia, in the post-COVID era, the layout and design of offices would change. Spacious offices, seating arrangements and layouts where social distancing is possible will be the requirements. Till now the occupant occupiers of office space were IT, BFSI and manufacturing. But now start-ups, co-working and data centers are expected to lead the demand by moving ahead. In the new year 2021, several major commercial micro markets, satellite offices will emerge. Focus will be on giving tenants a thriving experience by putting wellness at the forefront. With the spurt in economic activity, we expect prices to strengthen in the next few quarters, with rents rising in earnings.
2021 will be a year of calculus for real estate
According to Shishir Baijal, chairman and MD of Knight Frank India, when the lockdown slowly began to open in the second half of 2020, consumers came back with a renewed vigor, especially in the housing segment. Timebound and focused government interventions played an important role in rekindling market sentiment. As consumers and businesses move forward in 2021, the market situation will improve significantly by 2020, while managing lives and livelihood responsibly amidst the uncertainty of this epidemic.
The housing sector, with its latent demand potential and many improved demand dynamics, is expected to lead the way. Within the commercial segment, the data center will emerge as a bright star. Overall, we expect 2021 to be the year of calculating for the Indian real estate sector.
Sreeram Raheja, director of S Raheja Realty, says things are looking bright for the sale of a residential house as government incentives such as low home loan rates and stamp duty cuts have acted as a catalyst. In the coming year, due to rising liquidity, better regulations and lower interest rates, real estate will see a further rise. 2021 will see a continuous shift towards buying property from rental culture.