COVID -19 pandemic has radically altered people's lifestyles everywhere around the globe, with the real estate industry also being the one damaged. Its impact was hindering to the point that it brought the whole property transactions, almost to a halt, especially during the first and second waves. Since then, the Indian real estate sector has been emerging slowly even after the market has taken several strides towards recovery.
Consumers have started investing in real estate in recent months in the hopes of restoring to life before the epidemic. The rising demand for housing is due to improved awareness of health, sustainability, and a return to a steady flow of money. As a result of the real estate sector's success in 2021, especially after July, the residential sector swiftly embraces technology solutions to support company operations.
Growing demand in the real estate market has been hard-pressed by digitalization and innovation, in addition to low-interest rates on loans and favorable government policies that have resulted in increased investments in real estate. The real estate market has transformed into a buyer-centric market with sturdy investment and development indicators by 2022.
New trends encourage buyers
As a result of the pandemic, the real estate industry learns about new consumer preferences, which helps them acquire new clients. The desire for a home with large workspaces for home office, online schooling, and reverse migration, with lush green terraces, has attracted potential buyers in Tier 2 and 3 cities. As workplaces implement flexible work policies, people are seeking residential possibilities in their hometowns. In Tier 2 and 3 cities, scarcer traffic jams, lower pollution levels, world-class infrastructure, affordability, and a higher quality of life are driving demands. These trends increase the urge of potential buyers, especially in the outskirts of Tier 1 cities.
Attractive opportunities
India is one of the top ten fastest-growing housing markets in the world. According to the ICRA's estimations. In 2022, infrastructure and real estate investment trusts are predicted to raise more than Rs. 3.5 trillion (US$ 48 billion) for Indian companies. In comparison, funds totaling USS 29 billion have been raised to date.
Blackstone, a private equity firm that has made investments in the Indian real estate market (to the tune of Rs. 38,000 crores (US$ 50 billion)), is looking to spend an additional Rs 17,000 crore (US$ 22 billion) by 2030.
A boom in private investment in the sector is powered by improved transparency and rewards. India invested US$ 2.4 billion in real estate assets in the first half of 2021, a 52 percent increase over the previous year. Between April 2000 and June 2021, FDI in the industry totaled $51.5 billion (including construction development and activities).
The business sector is likely to see increased investment in 2021-22. For example, Chintels Group announced in October 2021 that it would spend Rs. 400 crores (US$ 53.47 million) in a new commercial complex in Gurugram that will span 9.28 lakh square feet.
Toward Buyer Centric Market
Previously, the real estate market was more flexible in reference that anybody could buy a piece of property. Now that customers have more information and power, they are driving this industry to become "customer-centric" rather than "broker-centric." Customers now have a wealth of information about what they need to buy, what projects they are interested in, and what payment plan they will use, which is helping to make the market more customer-centric.
