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Real Estate Industry Encounters Unexpected Changes Post Covid-19

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According to a report by Review 42, almost 4.7 million people among the global population were already working remotely before the outbreak of the pandemic.

When the Coronavirus pandemic hit the world in 2020, countries all around the world imposed lockdown protocols in order to restrict people’s movement and put a brake on the rapid transmission of diseases.

As a reaction to the entire situation, the industrial sector began to embrace the work from home culture to keep the businesses functioning amidst a worldwide health crisis.

However, the implementation of remote work policies in the companies has brought a mixed bag for the real estate sector.

According to a report by Review 42, almost 4.7 million people among the global population were already working remotely before the outbreak of the pandemic.

But, the pandemic forced every sector to make work from home a part of their business culture.

A survey by Gartner, Inc. of 317 CFOs and Finance leaders in March 2020 showed that 74% of respondents would be moving 5% of their on-site employees to permanently remote work.  

This growing trend has heavily impacted the Indian real estate sector which had to survive a severe blow due to the long-drawn country-wide lockdown.

The prolonged lockdown resulted in a lack of manpower and disruption in the supply chain support leading to an unprecedented halt in the construction works.

According to a report by Anarock, home sales across the top 7 cities decreased by 49 per cent in H1 2020 as compared to H2 2019. 

However, with the rollout of vaccines and reopening of the market, the real estate sector is seeking speedy recovery and 2020-2021 has proved to be a good year for the real estate sector.

In fact, after the second wave of the Corona pandemic, most Indian cities observed a rise in property prices during the July-September period of 2021.

Ahmedabad registered an annual growth of 8% in residential realty during this time period. Mumbai apartments priced below Rs 1 crore saw a 6.9 times rise in deals in the month of August when compared to April.

At the same time, the housing affordability of Indians has also improved owing to the low-interest rates of the housing loans and Government subsidy schemes   

The work-from-home trend is here to stay even after the looming threat of Covid19 is long gone.

A KPMG report shows that 68 percent of organizations have incorporated WFH policies whereas companies like Tata Steel, Ceat, Zensar already have a permanent WFH policy in place.

In such a scenario, the real estate sector is witnessing a shift in consumer behavior. Residential properties are in high demand while commercial and retail estates are still struggling to see an upsurge in demand across the country.

On the brighter side, the coming year 2022-2023 is expected to hold great growth opportunities for the Indian real estate industry. As this year was the reviving time for the sale of properties, market experts assumed to observe increased demand in the upcoming year.

DISCLAIMER: The views expressed are solely of the author and RealtyNXT.com does not necessarily subscribe to it. RealtyNXT.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

ALSO READ: The Enduring Appeal Of Indian Commercial Real Estate

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