0 %
The Indian real estate business had robust fundamentals prior to the Covid-19 crisis, including stable leverage levels, money available, and leasing activity. With expanding industrialisation and a growing number of employees coming to major areas, the Indian real estate market was thriving.
In the last decade, India's real estate market has exploded. The advent of institutional money, strong occupier interest, and the rise of organised real estate developers have all aided the boom. Given the current state of COVID-19 and its flexibility, the way we live, work, and play in the future is likely to experience extraordinary change. This, on the other hand, might be viewed as an opportunity to shape the future—and to engage in concentrated innovation.
The year 2021 was predicted to be a year of recovery, and the Union Government's immunisation campaign bolstered that belief. Though an increase of COVID-19 cases in various parts of India has prompted investors to stay cautious, the dropping number of cases and increasing homebuyer demand have prepared the road for long-term recovery.
One of the major impediments to the expansion of the real estate sector has been the lack of credit. Financial institutions have been forced to avoid riskier investments due to the already uncertain environment, which has been exacerbated by the recent revival of the pandemic. This could exacerbate the real estate sector's already dire financial situation. However, historically low loan rates and stamp duty reductions in a number of states are expected to assist boost house demand. Furthermore, the state RERA authorities' completion timeline extensions have given real estate developers more time to complete their projects.
Businesses have been propelled forward by the disruption caused by the COVID-19 outbreak. The once-slow and leisurely journey of real estate, with lots of stops for planning, dreaming, and advising, has now been accelerated to meet future problems. Technology, rather than just concrete and mortar, will drive the future. The desire to work from home has been one of the urgent changes brought on by the pandemic. This tendency, which has already been absorbed to a large extent, will most likely become the new standard.
A THRIVING AND EVER-EVOLVING COMMERCIAL REAL ESTATE MARKET
Sectors like technology, finance, financial services, and research and consulting have shown a keen interest in commercial real estate, and this, along with operators offering flexible space, has contributed to a steady annual expansion in office absorption.
While various improvements may be required for commercial venues, a clear focus on employee and guest safety will be necessary when they are reopened. This may result in an increase in operational costs, but it will ensure that tenants are prepared in the event of an emergency.
CONTRIBUTION OF GOVERNMENT PROGRAMMES IN REAL ESTATE SECTOR
In addition to providing relief, the Prime Minister's USD 266 billion economic plan will assure a quicker turnaround. Strengthening India's economy, infrastructure, technological system, lively demographic, and demand would put the country on a firmer platform in the long run. India will be "self-reliant."
In order to alleviate the pressure on the construction and housing sector, the Finance Ministry has granted several incentives. In order to help contractors with cash flow, it has extended all central agency contracts by up to 6 months (at no additional cost to the contractor) and ordered agencies to partially release bank guarantees on partially completed contracts.
SEVERAL TECHNOLOGICAL DEVELOPMENTS IN THE FUTURE
Technological advancements have created enormous potential for transforming real estate properties. When it comes to retail, e-commerce has been important to a company's existence. When it comes to the workplace, cloud computing and video conferencing technology have made it possible for employees to work from anywhere. Site visits and interior viewings can be conducted using virtual reality technology in a variety of commercial real estate sectors. Facilities management teams are using artificial intelligence-enabled people-flow controls to monitor visitors' body temperatures and prevent the spread of the virus.
NRI REAL ESTATE INVESTMENT IN THE WAKE OF COVID-19
Non-Resident Indians (NRIs) invest in real estate primarily for the purpose of receiving rental income. However, because of the worldwide uncertainty caused by the pandemic, many NRIs have chosen to buy a home in India as well. NRIs are actively exploring investment opportunities in the Indian real estate sector as deposit rates fall to a range of 6-7 per cent and the rupee's value against the US dollar decreases. There is a growing NRI community that is taking advantage of virtual visits and investing in real estate online.
The biggest flex of buying a home in the post-Covid era is the availability of space. When you plan to buy a flat, an apartment or a rowhouse, you need to keep in mind, there has to be ample space with respect to the people living in the same. However, you must also keep in mind that a large house does not necessarily mean a smartly designed home. Before you plan to move into your home, try to furnish your home when your workspace can be easily accommodated.
However, if you are planning to visit a site anytime soon, do keep in mind the safety precautions. Fortune Dream Con Pvt. Ltd. has a wide variety of residential and commercial projects in Vapi, Daman and Silvassa. And they’re made a lot of arrangements to make sure you have a safe and smooth home-buying process.