Post Pandemic Changes In Residential Properties In India

The year 2020 was the ideal time for the Indian real estate market to take off. After three years of upheavals including demonetisation, GST, RERA, and the NBFC crisis, the system was slowly gaining transparency and efficiency.
The epidemic that afflicted virtually every live individual in the country will be remembered as the year. The ensuing countrywide lockdown threw markets into chaos, causing even more hardship and distress in the real estate sector.
Further, mishaps surrounding the economy and jobs also increased in the last year, which led to more uncertainties in the market. The impact of pandemic on real estate is clearly visible. But, what does the real estate industry look like post-pandemic?
As the globe continues to recover from the pandemic’s catastrophic economic disruptions, many investors are curious about what will happen next. What changes are we likely to witness? What is the pandemic impact on real estate? Will the price fluctuate post the pandemic? Let’s find out!

Real Estate Industry: An Overview

Property prices in India’s main cities have grown at a minimal rate during the last five to eight years, owing to a downturn in consumer demand.
Covid-19 further hit the already dwindling industry and witnessed a decline of 30%. In fact, the property transactions were down to a near-halt last year due to pandemic.
However, the real estate sector was forced to employ digital business strategies due to the situation, which led to a rapid transformation. As a result of the epidemic, the usage of virtual visits has increased, allowing the NRI population to browse, choose, and invest in real estate online.

Real Estate Industry Post-Pandemic

The industry does not have consensus over price fluctuation post pandemic. A lot of estate companies believe that there is limited scope to cut any price because the industry has been reeling from a slowdown. However, the prices of real estate have come down and will further reduce if the waves of pandemic keep hitting the country.
For potential home buyers, it is an excellent opportunity to buy their homes means it is the right time for real estate investment. In addition, the government announced incentives for affordable housing that will further help the buyers in fetching good deals in real estate.
Even if an investor is planning to buy residential property post pandemic, it is a good time to invest in buying new properties. In the post-pandemic landscape, residential rentals are beginning to return to normal as the people are again shifting to their original areas of residents.

What Do Experts Say?

According to some industry veterans, residential properties are at the top in the list of profitable investments in India post the pandemic. In the luxury housing segment, the prices may fall to a new low and it may witness a downward trend as people are focusing on health and safety before luxury. It is the right time to invest in the properties as it is projected that by 2025, approximately 45% of luxury home owners would be millennials.
An important thing to note here is that the prices may not further see a downward trend because the holding cost of the developer will increase and there will be a pressure to liquidate unsold inventory. Therefore, now is the right time to invest in the sector. Having said that, do remember to do all the legal checks for the property that you are planning to buy.