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
Real Estate

Rethinking Slum Development

In July 2024, the Supreme Court directed the Bombay High Court to initiate suo motu proceedings to evaluate the implementation of the Maharashtra Slum Area (Improvement, Clearance and Redevelopment) Act.During the ensuing proceedings, the Division Bench of Justices expressed concern about the plight of slum dwellers, saying, “Merely because you are a slum dweller doesn’t mean that you are left to the discretion of developers. They end up with a pittance.” The Bench also noted that the buildings allocated to slum dwellers were akin to “vertical slums”. “The buildings are congested. ..

Next Story
Real Estate

Ring in the New!

Lighting:OLED (organic light emitting diode) panels such as those by Philips are the latest option in soft lighting fixtures that can be embedded into walls, ceilings or furniture, says Nilesh Sawant, Principal Architect, Nilesh Sawant Architect. “Being thin and flexible, they lend themselves well to different applications while delivering the energy-efficiency associated with LED technology.”And Sapna Aggarwal, Founder, ANSA Architecture & Interiors, says “Embedded light-emitting diodes can create a dreamy illumination, while dimmable LEDs are useful for allowing..

Next Story
Infrastructure Urban

Jhansi Library

The Jhansi Library, commissioned by the Jhansi Development Authority (JDA) under the Jhansi Smart City initiative and built by Bootes Impex, a net-zero construction-tech company. It is the first library in Asia to achieve EDGE (Excellence in Design for Greater Efficiencies) certification from the International Finance Corporation (IFC), a member of the World Bank Group. This milestone marks the library as India’s first and only net-zero library, aligning  with India’s Net-Zero Vision 2070.Sustainable designDeepak Rai, Managing Director, Bootes Impex, explains, “The project's vision ..

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