Fate of Real Estate Business Post COVID19
COVID-19 also known as CORONA virus is not an epidemic, it is a pandemic which has affected mostly all the countries except few countries in Africa. Close to 0.5 million people affected and the death toll crossed 20,000 as on today. Probably this is the major pandemic known to mankind in the recent past.
There are many questions in front of mankind like
How long it’s going to take, to subside and what will be the final toll?
When will be a vaccine or cure be invented for it?
Most importantly, what could be the social, business and industrial scenario post pandemic?
No one knows the answers for the first two questions but certainly there will be impact on social and industrial behaviour. The stock markets of many countries are on a sharp decreasing trend, export and imports are stalemate among countries, manufacturing industries across many continents are closed and economies of many countries are become complex or collapsed.
What could be the impact on Indian real estate?
Hills & Wills a premium property management company exclusively deals with South Indian hill stations has studied the scenario which could be useful to the entire Indian real estate industry.
Post pandemic scenario of Real Estate in Metros, Cities and Town in Plains
1. Saving habit of Indians was one of their biggest strength in the past. But last few decades it has changed a lot and people migrated to spending habits. There will be a definite change on this because people would have realised the need to have savings to manage these kind of scenario in the future. This will have an impact on the category of peoples who investment on their second home and additional properties.
2. People who couldn’t manage the complete lock down for weeks financially will start trying to sell their properties to manage their loans and debts. This will lead to flooding of properties for sale and it will become a strong buyer’s market. There is every chance for the price drop.
3. There is an increased awareness about two factors called “Self Isolation” and “Social Distancing” among Indians in the last 1 week, which is considered to be the only way to fight this pandemic and strict laws have been enforced by both State and Central Governments in India to achieve it. This will lead to a demand for independent houses in the future and many may not prefer apartments. Apartment prices will be cheaper and the builds having unsold projects will face a tough time.
4. There could be a possibility of migration towards villages by people who couldn’t manage their business and life style at cities. This will lead to property rental drop in Cities and Metros.
Post pandemic scenario of Real Estate in Villages
COVID-19 pandemic has created panic and fear among all category people, especially in the mind of people who live in Metros, Cities and Towns where the population density is more and the chances for self isolation and social distancing is less.
People will understand the value of village life style and the need to protect and maintain their village properties to face these kinds of pandemic lock downs or war scenario in the future. Because the cost of living in village is comparatively less and the village houses and properties are normally big enough to maintain the social distancing .This will boost the demand for village properties and real estate segment there considerably.
Post pandemic scenario of Real Estate in Hill Station
What the people will do who do not have village nativity or properties there?
They will try to have a second home where they can get the space for social distancing. The choices to them are to buy a property in the outskirts of cities or at hill stations. But the hill station property will get the priority in their mind.
The reasons are
• Spending couple of weeks or months will be an enjoyable experience in a hill station rather than at a home in the city outskirts.
• Vegetables and fruits are cultivated in hill stations and available to the local residents freshly and plenty even during today’s scenario.
• Investing in a hill station property also gets social status edge to them.
Hence the real estate in hill station will be on upbeat after this COVID-19 pandemic scenario. The current pandemic paved a way so that the people are expected to come to hill station not only for enjoying their holidays but to buy properties for self-isolation, social distancing from their mainland as and when any such pandemic outbreak or during natural calamities.
But one to remember that hill station properties are as unique as finger prints and only the right properties can fetch the social status and even eligible for constructions. Don’t take a chance and act smart.
Take the world class advisory of hill station PRO Hills & Wills and buy property in Ooty, Kodaikanal and Nilgiris though them and avail all required property management services to enjoy it hassle free.
Source : http://www.articlesfactory.com/articles/business/fate-of-real-estate-business-post-covid-19.html