The real estate industry reshaped with great heights and intensity during the first phase of lock down, entering into a different world, post pandemic. The commercial impact has changed over the years. Now, this effect will most likely to draw flak till 2022. #ThinkWithNiche
The business of real estate has escalated tenfold. There is no doubt that the largest employment sector, that generates maximum wealth is real estate in India, while agriculture on the second spot. Here are some of the grim impacts of a pandemic that took over the real estate sector. Since 2020, only 5% of offices have remained operational and it's difficult to keep up pace with constant consumer demands, leaving corporates with a big question mark. Its impact goes beyond reportage predictions and data. Each piece of the real estate sector was gravely hit, yet it remains to be the most affected spot. When employees began migrating in reverse, it took a tumultuous toll on their business.
Property Prices Drop or Fluctuations
Around April/May 2020, many Indian citizens came to a horrific realization, it grew like a stirring wheel in their minds, the importance and value of investing in one’s own home. In June 2021, sales of houses gradually started to catch up. The second wave has prompt citizens to save, rather than buying properties. The price of iron has increased greatly and now per tonne costs around Rs 20,000 which is a 50% cost increase of construction materials.
Nevertheless, and when it comes to working from home, that reshaped employee lives differently, offices spaces of million square feet were left surprisingly empty. According to expert reports, the loss incurred in the real estate sector is yet to cool down but not until the year 2022. From 2021 till now, the total amount of loss rounds to Rs 1 lakh crore.
Amenities and Work From Home, A Landscape of Change
Commercial aspects of the real estate industry are crucial because it holds a very paramount relationship with the economy, the drastic impact of the ongoing pandemic can speak volumes. According to the reports, larger spaces will be required by consumers for the long-run benefit if social distancing rules are emphasized post the second wave. In terms of health-related amenities, security, and safety resources, demand will surge ten times more than what occurred in 2020 due to the Covid-19 impact. The cost incurred on these major facilities and services has also leaped in great intensity. A huge appetite for large premises is the need of the hour.
There has been an increase in buying homes in tier-2 cities. It is most likely that housing quality will also boost in such cities. When it comes to buying costs, tier-1 cities are more expensive than tier-2 cities. Likewise, people living in cities of tier-1 can enjoy living in big spaces, reduction of pollution, close proximity to family, etc. But, seeing the expenses of some cities despite having great advancements, it would be difficult to cope up with the insane rising cost of living in the coming years.