Realty woes and market opportunity
Real Estate

Realty woes and market opportunity

The COVID-19 hit us a few months ago and its after-effects are going to continue across industries for a long time now. The pandemic caught all businesses off-guard, bringing multiple sectors to almost a state of stagnation. With consumers facing difficulty in site visits and moving to a new home due to the nationwide lockdown, the real estate industry came up with a viable and sustainable contingency plan. 

Like every dark cloud has a silver lining, it also reflected for the realtors who took a quick and timely action. The developers and realty players who responded to the crisis logically and strategically were not just able to stay afloat, but also moved ahead swiftly! Some of the techniques that had come handy was digital transformation. Many players have been agile to identify and grasp the existing opportunity to bring out the best during this crisis. 

Let us have a look at what and how the real estate sector has been working on to stay afloat and do better.

Digital push – Use of virtual property tours

The adoption of digital technology among developers, real estate platforms as well as buyers got a good head start due to the current crisis. As homebuyers could not do physical site visits, players like NoBroker leveraged augmented reality and virtual reality by partnering with big online real estate playersapart from their own platform to give home buyers a glimpse of their projects. Simultaneously, the real estate players also put their bets on innovative digital campaign initiatives to engage with their potential customers. 

Video walkthroughs have been around for some time but had not gained much traction. But given the social distancing imperative, video walkthroughs have been gaining steam in India since past two to three months. Technological intervention can do miracles for the real estate sector. These video walkthroughs have two parts – video of properties and live video calling between customers. These videos are uploaded onto the platform and prospective tenants and buyers can check them out.

This shift towards digitisation will play a significant role in sustaining a relevant customer pool and gain mileage on the sale front for the future. It saves time, effort and money and is a great way to shortlist properties.

RBI’s move to reduce the repo cut

Another ray of hope in the dark clouds of the pandemic was brought by the Reserve Bank of India. The RBI’s decision to reduce the repo rate (rate of interest at which the RBI lends short term money to banks) to revive the Indian economy came as a relief for the realty sector. Since the lockdown was announced in March this year, RBI has cut the repo rate by 115 basis points, which led banks to lower the interest rates on home loans. This move makes property more affordable due to reduced EMIs and could prove to be a crucial factor in driving property sales. 

Furthermore, the central bank has also asked lenders to extend the loan moratorium facility to their borrowers by three additional months, which will work as a boon for the borrowers to better manage their finances during these unprecedented circumstances.

Also, the extension of the Credit Linked Subsidy Scheme (CLSS) for middle-income groups till March 2021 will boost demand for affordable housing, while rental housing policy for migrant labour/lower middle class will open new business opportunities for real estate developers.


Developer promotions

Developers with high unsold inventory who are facing financial crunch may resort to price cuts making it even more sensible for fence-sitters to take the leap.We are already seeing lot of flexible payments scheme that makes it easy for the buyers to take a decision.

Consumer preferences

COVID-19 has also impacted consumer preferences. According to NoBroker.com’s latest survey, there is a preference for ready-to-move-in properties. 65 per cent consumers are looking to buy a property below 40 lakh. A majority of consumers prefer society apartments over independent houses as the former offers safety, power back-up and multiple amenities. 

In conclusion

It is safe to assume that the demand for buying homes will be back as India unlocks gradually. After all, staying at home has proved to be the best safety measure for families during the pandemic. And many people have realised the importance of owning a home. On the brighter side, Indian real estate and construction industry together is the second biggest employer in the country. The industry should remain optimistic and sustain through this rough patch. 

About the author:
Saurabh Garg is Co-founder and Chief Business Officer at NoBroker.com

The COVID-19 hit us a few months ago and its after-effects are going to continue across industries for a long time now. The pandemic caught all businesses off-guard, bringing multiple sectors to almost a state of stagnation. With consumers facing difficulty in site visits and moving to a new home due to the nationwide lockdown, the real estate industry came up with a viable and sustainable contingency plan. Like every dark cloud has a silver lining, it also reflected for the realtors who took a quick and timely action. The developers and realty players who responded to the crisis logically and strategically were not just able to stay afloat, but also moved ahead swiftly! Some of the techniques that had come handy was digital transformation. Many players have been agile to identify and grasp the existing opportunity to bring out the best during this crisis. Let us have a look at what and how the real estate sector has been working on to stay afloat and do better.Digital push – Use of virtual property toursThe adoption of digital technology among developers, real estate platforms as well as buyers got a good head start due to the current crisis. As homebuyers could not do physical site visits, players like NoBroker leveraged augmented reality and virtual reality by partnering with big online real estate playersapart from their own platform to give home buyers a glimpse of their projects. Simultaneously, the real estate players also put their bets on innovative digital campaign initiatives to engage with their potential customers. Video walkthroughs have been around for some time but had not gained much traction. But given the social distancing imperative, video walkthroughs have been gaining steam in India since past two to three months. Technological intervention can do miracles for the real estate sector. These video walkthroughs have two parts – video of properties and live video calling between customers. These videos are uploaded onto the platform and prospective tenants and buyers can check them out.This shift towards digitisation will play a significant role in sustaining a relevant customer pool and gain mileage on the sale front for the future. It saves time, effort and money and is a great way to shortlist properties.RBI’s move to reduce the repo cutAnother ray of hope in the dark clouds of the pandemic was brought by the Reserve Bank of India. The RBI’s decision to reduce the repo rate (rate of interest at which the RBI lends short term money to banks) to revive the Indian economy came as a relief for the realty sector. Since the lockdown was announced in March this year, RBI has cut the repo rate by 115 basis points, which led banks to lower the interest rates on home loans. This move makes property more affordable due to reduced EMIs and could prove to be a crucial factor in driving property sales. Furthermore, the central bank has also asked lenders to extend the loan moratorium facility to their borrowers by three additional months, which will work as a boon for the borrowers to better manage their finances during these unprecedented circumstances.Also, the extension of the Credit Linked Subsidy Scheme (CLSS) for middle-income groups till March 2021 will boost demand for affordable housing, while rental housing policy for migrant labour/lower middle class will open new business opportunities for real estate developers.Also read: Real estate gets boost with FM announcements.Developer promotionsDevelopers with high unsold inventory who are facing financial crunch may resort to price cuts making it even more sensible for fence-sitters to take the leap.We are already seeing lot of flexible payments scheme that makes it easy for the buyers to take a decision.Consumer preferencesCOVID-19 has also impacted consumer preferences. According to NoBroker.com’s latest survey, there is a preference for ready-to-move-in properties. 65 per cent consumers are looking to buy a property below 40 lakh. A majority of consumers prefer society apartments over independent houses as the former offers safety, power back-up and multiple amenities. In conclusionIt is safe to assume that the demand for buying homes will be back as India unlocks gradually. After all, staying at home has proved to be the best safety measure for families during the pandemic. And many people have realised the importance of owning a home. On the brighter side, Indian real estate and construction industry together is the second biggest employer in the country. The industry should remain optimistic and sustain through this rough patch. About the author:Saurabh Garg is Co-founder and Chief Business Officer at NoBroker.com

Next Story
Infrastructure Urban

With a strong international presence, we are poised for further expansion

EPC company Varindera Constructions (VCL) has completed 31 construction projects in the past 10 years with 20 ongoing projects in India and overseas as in March 2024. Varinder Kumar Garg, Chairman, shares factors behind the company’s stellar performance in its residential, commercial, metro, railway and institution projects and the material magnitude of the Hasimara Air Force Station project, which plays a key role in deployment and operations of Rafale jets in India, as well as his perspective on the latest technologies, sustainability, skill shortage and the company’s internati..

Next Story
Infrastructure Urban

Campal Stadium Project Delayed

The football stadium and parade ground project in Campal, Panaji, which was initiated under the smart city plan, has yet to be completed, even though it is over a year past its original deadline. The project started on March 21, 2022, and according to the initial work order, it was supposed to be finished by September 20, 2023. Imagine Panaji Smart City Development Ltd (IPSCDL) has reported that 98% of the work is complete, with the final 2% expected to be finished by March 2025. "A small area where the concrete batching plant is situated needs completion," they said. The project's total est..

Next Story
Infrastructure Urban

Cleanliness Control Centre to Monitor Work, Complaints 24X7

Jaipur's cleanliness management system is set to be more efficient with the Integrated Command and Control Centre now operating 24/7. On Friday, Arun Kumar Hasija, CEO of Jaipur Smart City Limited, issued orders to implement this change. Hasija explained that the centre will supervise door-to-door refuse collection, sanitation operations, and mechanized cleaning activities. Special attention is being given to night-time cleaning across the city, with advanced machinery being used to sanitize road dividers in areas like the Walled City. The centre will now operate round-the-clock to improve c..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000