The Corona pandemic last year had taken the world by surprise and proved to be very strenuous for corporations and industries. While all industries made efforts to tide more than the difficulty, it was true estate which showed exceptional resilience and embraced technologies in a important way to witness a sharp recovery in the second half of last year.
The second wave has slowed down that recovery approach to an extent. A section of the potential home purchasers is adopting a wait-and-watch-method till the present wave ebbs.
However, the ongoing wave of corona virus is proving to be significantly less tumultuous for the true estate business as developers had resorted to digitization for the duration of the last year’s lockdown and the ensuing months which is assisting them to be in continual touch with the consumers, take action upon the digital leads generated and guarantee them at least a virtual knowledge of their future home. All this is feasible for the reason that the business has been involved in the assimilation of new-age technologies and brought several of the processes involved in house acquire bargains on line. Technologies like 3D Walkthrough of the properties, Augmented Reality (AR) and Virtual Reality (VR) have been deployed by the business players, obviating the need to have for home purchasers to physically go and verify the properties.
GDP Growth Outlook of Indian Economy
Many worldwide rating agencies and monetary believe tanks even though had to trim the development forecast lately due to the second wave of the pandemic, they are nevertheless optimistic of a superior functionality by the Indian economy. Even rating agency Fitch is optimistic that the second wave will harm the economy significantly less than the very first one. “We expect the shock to economic activity from the latest wave of the pandemic in India to be less severe than in 2020, even though caseloads and fatalities are much higher. The authorities are implementing lockdowns more narrowly, and companies and individuals have adjusted behavior in ways that cushion the effects”, it has stated lately.
The stock market place as well has taken the second wave in its stride, albeit a couple of hiccups. While last year the stock markets had crashed when the virus caseloads have been raging, this year they have shown an accommodative stance for the very same.
The business is in a slowdown mode this year also for the reason that of the reality that there have been only partial lockdowns in a variety of states of the nation. Although corporations are faced with the grim situation presently, there is some headway for several of the small business activities to go in a prudent manner.
Only partial lockdowns have ensured provide chain of raw components this year for the developers who do not foresee significantly delay in the delivery schedule of their projects. Even the migrant laborers are, more or significantly less, continuing to remain place at project websites this year, if myriad security measures are place in location by the contractors or developers.
The pandemic has led to expanding realization amongst individuals to have their personal houses. The present low interest prices for home loans are letting them do it more quickly. With work-from-home (WFH) continuing on, there are a lot of personnel of businesses who have moved back to their home towns and now want to purchase a home for themselves there itself as there does not appear to be an finish to the WFH regime anytime quickly. This is top to a shift of buyer’s interest for Tier II-III cities as properly.
There is not denying the reality that the each new launches and sales figures have been dented to an extent in the last 5-6 weeks. However, if the present vaccination picks up a steady pace in the coming months, it can initiate movement and support the business attain a decent development trajectory.
(By Nagaraju Routhu, CEO, Hero Realty)