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VIEW: The pandemic may trigger real estate investments

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The pandemic has shown people the uncertainties of life and the importance of shelter during an unprecedented turn of economic events.

VIEW: The pandemic may trigger real estate investments
Authored by Pankaj Singh
We have heard and read a lot about how COVID-19 has affected various sectors. And real estate is no exception. Lockdowns stalled the constructions. There was a mass exodus of migrant workers to their native regions. People were reluctant to visit or invest in properties, which can be attributed to both social distancing and price sensitivity issues. Overall, the evergreen sector was not at its best since March 2020. But, this is going to change now.
The fourth quarter of the year gives us many reasons to celebrate. And yes, it includes the release of annual bonuses apart from an exciting lineup of events. But more than the festive fervor, it is the positive buying behavior and a generous attitude (cash flow) of customers that bring windfall gains for businesses.
Here are some reasons why it can be a game-changer for the real estate market too:
Tempting and Irresistible Deals
There is a general spike in consumer purchases around this time of the year. This means great business across all categories be it groceries, apparel, or electronics. In fact, this is why eCommerce behemoths align their heavily discounted sales with these months. Both offline and online models try to flash attractive discounts to lure the customers with flat 50 percent off or buy 3 get 1 free offer.
Lavish schemes and freebies such as gold or silver coins and cashback also work wonders in increasing footfalls. In all, going by history, subsidies on quality offerings have been the most effective way to generate sales. The same is going to happen this time too. We are going to see a plethora of deals popping up in the real estate market.
Changed Customer Preferences
Although even the promising hubs of real estate saw a slump in the sales initially, the remote working culture and the dip in interest rates are going to pull people into buying their own homes. Besides, it may completely change their preferences about the localities and areas they want to live in. Residents might want to migrate to the outskirts of the cities or say, from congested regions to peripheral areas with open and green environs.
Those moving to big cities might look for spacious residential properties. WFH will act as a boon for companies offering residential management solutions. With an increasing focus on self-care, the workforce will demand a better work-life balance and spacious dwelling units that allow its residents to have a separate space for work and recreational activities. In short, moving away from the hustle and bustle to living in locations that still suit their pockets.
Customer’s Urge To Crisis-proof The Future
The pandemic has shown people the uncertainties of life and the importance of shelter during an unprecedented turn of economic events. This is one of the major factors that is turning things in favor of the real estate. Though people were restricting their expenses and paused their rental transactions as a buffer against a similar crisis, they have now realized the way forward. People are actively looking for properties to invest in to safeguard their future. The New Normal will be all about managing your expenses smartly which involves securing your other fronts. Moreover, there has always been a huge pent-up demand for the housing market.
Perfect Planetary Prospects
The present and the following months are considered highly auspicious in certain communities. This is why we see many marriages taking place around this time of the year, which is another factor families start searching for bigger homes. We witness a sudden rise in the purchase of gold and other expensive jewelry items.
Most of such investments take place in Navratri, Dhanteras, and around Deepavali. This trend to buy an asset continues until the last day of the Gregorian calendar. As a result, a lot of services revolving around renovating homes, painting, catering, especially the residential-rental sector, experience good business numbers.
Undoubtedly, the pandemic introduced disruptions in real estate. But will now become a causative factor for its growth. People who were confined within their homes during this ordeal would want to upgrade themselves with bigger spaces. If that happens, the coming months might just change the fortunes of the sector.
Pankaj Singh is Founder & CEO, Multiliving Technologies
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