Has COVID-19 Affected The Real Estate Segment In A Positive Or Negative Way?
The COVID-19 pandemic has impacted the world in unprecedented ways. With most businesses and organizations coming to a grinding halt in 2020 and the subsequent waves causing disruptions in 2021, people around the world have displayed resilience in getting their lives back. The pandemic also taught us the importance of many things that we otherwise took for granted – like our homes. Also, with most people experiencing a cut in their salaries or even job losses, the importance of savings and investments was renewed in our minds. 2022 saw the emergence of a new variant of the virus – Omicron. While it is believed to be less lethal than the earlier variants, the government has been taking preventive measures to curb its spread. In this article, we are going to talk about COVID-19 and look at its impact on the real estate segment.
Before we look at the impact of COVID, here is an interesting statistic:
Pune witnessed bumper home sales in the calendar year 2021. This was primarily due to low interest rates and various SOPs from the state government including stamp duty rebate.
Impact of COVID on the Real Estate segment
The COVID-19 virus has left many industry experts reeling under the pressure of being able to predict the potential impact on different sectors. With a pandemic being a unique challenge for our generation, speculations have been rife on either side of the board. While some experts feel that the variants of the virus will result in a downward spiral of the economy and various segments, others are banking on the resilience of people and hoping for an upswing. At BramhaCorp, we have created residential and commercial properties for people in Pune keeping their requirements in mind.
· During the pandemic we observed that many people were keen on buying a residential property that is spacious, secure, and built keeping the new-age requirements in mind. With work-from-home becoming the norm, people have started expecting to spend more time at home. Hence, they need a home that can double up as their home office and allow them to unwind and relax after a stressful day at work. The residential spaces created by BramhaCorp like BRAMHACORP SMART and THE COLLECTION have been designed and created to allow residents to work and unwind within the same space with ease.
· The pandemic-induced lockdowns had seen offices, schools, and various commercial establishments shut operations. During 2020, many businesses opted for the remote working model. However, businesses have now started re-opening and looking to expand their operations. Schools have reopened and gyms, swimming pools, spas, and various commercial establishments have also resumed working from the office. This is evident in the increase in demand for commercial projects. As the country battles the virus and nudges towards ‘normalcy’, we expect the demand for commercial projects to increase significantly. However, people would expect offices to be sensitive to hygiene, sanitation, and office spaces that can incorporate social distancing norms effectively. At BramhaCorp, we have created projects like BramhaCorp Business Park, Boulevard Towers, and F Plaza for modern businesses and kept all such requirements in mind.
· Another aspect that got highlighted during the pandemic and furthered during the Omicron wave was the need to save and invest for a financially secure future. With stock markets and gold prices turning highly volatile, real estate became a preferred option for many investors. This also contributed to the increase in the demand for quality residential and commercial projects in developing cities like Pune.
This too shall pass
Human beings have battled many challenges since the dawn of civilization. We are a resilient race and know how to emerge winners regardless of the enemy we are battling. While the COVID-19 virus and its variants have managed to instill some fear in our minds, people have started dealing with this fear constructively and looking towards the future. This is a good sign for the real estate sector. In the long run, when the world defeats the virus, investors who have purchased a residential or commercial property during this period will stand a good chance of getting high returns on their investment.
With the medical fraternity working round the clock to find a cure and vaccines already being rolled out, most people are positive about the economy resurging and hence are looking at investing for their secure futures. This can be good news for the real estate segment. Hence, while the Omicron wave did bring some anxious moments when the number of cases was spiking, the impact was short-term. We expect the real estate sector to boom and thrive in the coming years.