
The COVID-19 pandemic has brought a high level of change in terms of lifestyle and preferences amongst the consumers. The consumer sentiment has impacted each and every industry following the series of lockdowns across the country. Real estate industry is no different, the changing though process related to investing in a property has changed drastically. Moreover, the India real estate industry is the 2nd highest employment generating industry in the country.
The road ahead for the real estate industry is as bright as a sunshine since the market is expected to grow to INR 65,000 crore by 2040 from INR 12,000 crore in 2019. As the real estate industry contributes heavily towards the country’s GDP, let’s have a look at some recent trends going on in the real estate market –
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•Surge in Investment by Women – The stats suggest that more than 80% women are willing to buy home post covid19. The major reasons behind this sentiment are affordable cost, savings , offers, discounts and home loan rates. Although the favour is towards ready-to-move-in-homes, women are trying to avoid investing in under construction properties due to risk. In addition, various government policies and banks with discounted loan rates are encouraging women to buy their own house.
•Income Stability–The uncertainty revolving around the pandemic is impacting the investment outlook. Investors with stable income will gain confidence in diversifying focus on assetswith much higher returns and lower rental to make sure that their money is safe and increasing its value. Though the office space will continueto attract more investors, defensive real estate likelogistics and data centres would provide opportunitiesand are expected to see an increase in investment. The economic recovery will also reflect in the increase in traction of retail andhospitality space.
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•Upgrade to Better Homes–Mid income buyers are keen to move into better homes with modern amenities and open spaces. The standard of living is seeing an increase post lockdown which is leading to consumers preferring latest ecosystems and recreational activities. Also, cut in the stamp duty has led to increase rise in sales of premium properties at various locations. This upgrade is being done for both investment and rental purposes.
•Price Adjustments – Developers are revising the prices of the properties to increase demand. This adjustment is done to lure investments and sell off the vacant properties. Investors are likely to benefit from this price adjustment as they see this as a great opportunity to make an investment.
•Studio Apartments Demand Falls–Millennials before covid pandemic were the driving force that was increasing the demand of studio apartments in metro cities. Developers saw this as an opportunity and started constructing more studio apartment across cities. The sudden reversal of this trend was caused by covid19 pandemic as many left their apartments to live with their families.
Vishal Raheja, Founder and CEO of InvestoXpert Advisors Pvt. Ltd., states that “The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which will allow all kind of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion ($19.65 billion) in the market in the coming years as the Indian real estate market looks to bounce back”.

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