While the Indian economy witnessed a promising begin to 2021, the second wave of coronavirus instances across India have brought untold hardships to folks and place a short-term brake on the road to recovery. The COVID-19 pandemic has prompted us to ‘reflect, reassess and rethink’ to gear for the new normal. The post-COVID situation will not just alter the homebuyers’ preferences and developers’ methods, but also usher in a new dawn in Indian genuine estate.
Being the fifth biggest economy in the world and a considerable contribution to the world financial development, it is vital to note that India’s COVID crisis threatens not only its personal but also the world economy. Hence, whilst the wounds of the second wave would stretch grave, the government and organizations jointly will need to modify the existing retort to the virus, to augment the road to recovery.
While professionals think the second wave could diminish by June, the indicates to rebuild the economy need to begin now. Although the pandemic will undoubtedly have an effect on the existing development the sector was riding on, but the silver lining, if any, remains the reality that it has struck at a time when the Indian genuine estate sector is the most matured and resilient than it ever was, thanks to the a lot-necessary reforms.
The pandemic has underscored the significance of agility and resilience as the crucial to survival. Companies that are versatile sufficient to adapt themselves in tune with the altering specifications more than time have inevitably commanded an edge more than their peers. It has also prompted firms to rethink their small business methods and organizational structure.
What does the existing scenario say about the evolution in typology?
It’s an chance to reconsider every thing – how we make up communities and addresses to be even more resilient, healthful, eye-catching, sustainable, and be inventive at the exact same time.
As we advance to the post-COVID phase, sustainability will be the centerpiece of the genuine estate narrative, with developers bracing for this trend utilizing eco-friendly building methods and introducing an array of wellness features in self-sustained-gated townships. Instead of price tag point, the focus is on the potential of properties to allow deeper emotional connection with oneself and foster a sense of neighborhood. The conscious attitude of purchasers is also demonstrated in preference towards amenities that lead to general well-being.
The wellness and wellness issues have led to an evolution in project design and style and architecture to a enormous extent. Location, the ecosystem, facilities, and state-of-the-art amenities have emerged as sought-immediately after desires of today’s purchaser. One point that the pandemic has reaffirmed is the significance of a life-style in harmonious co-existence with mother nature. People will prosper in areas with light and air and views!
Instead of considering only about saving the bottom line, projects must be created maintaining in thoughts ‘carbon neutrality to not just reduce energy consumption, but also offer means of renewable/reusable resources, for the modern and evolved homebuyer. The demand has already led to increased incorporation of green building features and energy-efficient technologies into newer projects.
In future once the pandemic starts to subside, to turn away from isolation and fear, and to turn towards a newer appreciation for community, buyers would look for spaces that bring them together through common experiences within the safety and comfort of their own neighborhood. At the same time, there will be a shift to a demand for spaces that better reflect a new way of chasing life, that will include superior personal space. The designs will encourage touchless tech features. From a micro requirement point of view, theme-based residences uniquely tailored to customer preferences will start to become the norm.
The focus has now pivoted from offering merely a superior product to a wholesome customer experience.
What does the future look like for businesses?
A report recently released by PropEquity called out NCR having observed a rise in both home sales and new launches by 6% and 136%, respectively in Q1 2021. COVID-19 has reinforced the significance of home as an address and investment asset amid diminishing luster in alternative asset classes. A CII-Anarock COVID-19 Sentiment Survey has highlighted that approximately 24% of respondents have already booked properties amid the pandemic.
Work from home has become the fulcrum for shaping homebuyers’ preferences. Suburbs of metropolitan cities and Tier 2 and 3 cities have emerged as the new locus for genuine estate development. Amid work from home, at least 43 % of respondents expressed a preference for living in peripheral regions. A spate of infrastructural developments and enabling policy framework has also accentuated the prospects in these cities.
The opening of the vaccination drive to all adults implies a positive turnaround for wellness and economy hopefully in the next six months. While the current restrictions will effect the delivery of projects, genuine estate is poised to witness an upward development trajectory if the 2020 statistics are something to go by. A Knight Frank report highlights that residential sales witnessed an uptick by 44% Y-o-Y in Q1 2021, bolstered by the revival in sentiment.
Call for action
In a heartening endeavour, the crisis has witnessed corporate, civil society, and government coming with each other to tackle healthcare challenges. In the genuine estate sector, collaboration and innovation will be the crucial to steering by way of these unprecedented instances. Developers and stakeholders will need to brainstorm collectively to address difficulties such as shortage of labour at building web pages, consumer retention, and boosting sales. Against the backdrop of financial stability prospects, the interplay of technologies and innovation, and thrust by the government, genuine estate will after once more be in a position to pave the way for an fascinating time ahead.
While the second wave is a extreme be concerned, the sector continues to be buoyant that the actions undertaken by the government last year has place in spot the constructing blocks necessary to push the development. The pandemic could delay the recovery approach by a quarter or so, but we are optimistic that it will not harm the lengthy-term story for the sector.
The possibility for development in Asia’s third-biggest economy, with its sizable provide of assets pending demand, remains enormous.
(By Karan Kumar, Chief Marketing Officer, DLF Ltd)