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
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?