The ongoing COVID-19 pandemic has caused unprecedented disruption across the globe. Like the rest of the world, we were not prepared to deal with a crisis of this nature that clearly has profound repercussions both economically and physiologically. The scale of the outbreak has given rise to new ways of life and seamless adaptation to several new norms. Remote working or work from home and virtual interactions have found greater acceptance in the wake of the pandemic.
A clear distinction between a pre and post-COVID world is being established even as businesses gradually try to pick up activity in the recent weeks after prolonged lockdown.
In the post-COVID era, we foresee a massive mindset shift in how people live and work. Real estate’s famous mantra of ‘location, location, location’ may not be enough to sustain in the post-pandemic world. Going forward, developers will have to evolve and rely on more value-based themes, innovations and services to meet the changing demands in the new environment. In such times, we expect all key stakeholders of the industry to be the torchbearers of the new theme as survival will rest on delivery, value creation and sustainability.
Connectivity to work-place, robust social infrastructure will also determine the choice of location for homebuyers.
Savills research also indicated that investors are likely to show a higher preference for smart homes and integrated townships in the post-COVID world. Despite the gloom, over 21 per cent of end-users are expected to come back to the market in the coming 6-12 months. Another trend that is likely to emerge is interest for customers to purchase properties outside their city or country of residence either for end-use or investment purpose. This trend will be fueled by the increasing integration of technology across the value chain of transactions, thereby providing ease and transparency to buyers,especially to those looking for homes from a distance.
However, the revival of housing will warrant equal effort from all stakeholders. Low borrowing rates, government intervention with specific tax reforms such as the reduction in stamp duty and ready reckoner rates as well as developers’ focus on delivery and transparency will be the key for demand resurgence.
About the Author:
Shveta Jain is Managing Director, Residential Services at Savills India.