Impact of covid-19 on Real Estate SectorMay 27, 2021 2021-05-27 9:17
Impact of covid-19 on Real Estate Sector
Real estate is one of the most globally recognized sectors. The growth of this sector is well complemented by the growth of demands in residential properties due to increase in high standards of living amongst the common people along with the need for the corporate environment and office space due to urbanization. As per the reports, the real estate market in India is expected to reach a market size of US $ 1 trillion by 2030 from US$120 Billion in 2017 and contribute 13% of the country’s GDP by 2025. Sectors such as IT, Consulting & e-commerce have a high demand for office spaces. Due to this, the demand for organized manpower and qualified professionals like project managers, architects and engineers is increasing day by day. In today’s scenario of lockdown, it is expected that the real estate sector will decline due to the upcoming recession in the world’s economy. Due to which the significant impact is supposed to be on developing countries like China and India, says the latest UN – reports.
But according to Bill Bishop, a china analyst, as he wrote in his newsletter that India will be the biggest beneficiary for big investors and global companies to come to India. Since China has lost its trust from investors due to rumored conspiracies, there are chances that the investors might shift their focus towards India due to the high availability of manpower, resources, and proper transport system.
There is also a high scope for FDIs because of the rupee fall. But due to demand for residential and commercial projects is expected to fall since people will prefer to keep the cash with them as per the current situation. This will also impact the prices of the property to fall as developers may provide more discounts and lucrative offers to the customers. It’s a really good time for those who are looking for investment options as the rate of returns is maximum in this sector. Also, the banks have reduced the interest rates on home loans to attract customers.
The impact of the pandemic has already got a huge change in work culture across the globe. In effect of which the remote working is widely accepted all over the world. Even the educational institutes and colleges have been shifted to an online module. Looking at people’s needs in the future, there will be high demand for dedicated study or workspace in homes. It is likely that the demand for co-working space in every building or society might also increase with measures for new systems like sanitization, air conditioning filtration etc. Similarly, the demand for student’s housing and co-living might decrease in the short run, but in the long run, it might increase tremendously in cities like Pune, Mumbai or Bangalore where there’s a high population of students and working-class who have come from the other cities. Also, the hospitality sector will have to upgrade their service quality and cleaning systems to cater to the demand for cleanliness and hygiene. However, the demand for malls and shopping arcades might fall, as people are more comfortable buying online which saves time and efforts. Due to this, the demand for e-commerce is going to rise, resulting in an increase in warehouses and data centers.
The way forward, as a result is, real estate courses and construction project management courses in India will likely see an increase in demand. There will be a surge in demand for distance education in construction management courses. We should be guiding people on how to start real estate business. Keeping all this in mind, we should be encouraging more and more entrepreneurs to come forward and make the stride. We have made sure that our platform becomes the propeller in this initiative. This is done by continuous revision and adoption of innovative ways in the methods and scope of the modules prepared by our experts.