BLOODY COVID CAN BE A GAME CHANGER FOR INDIAN REAL ESTATE INDUSTRY

The COVID-19 pandemic has been quite unlike other pandemics of the past. It has irreversibly altered LIFE itself, life that we took for granted as usual day-after-day. Normal life has come to a standstill in almost every part of the world. Industries and businesses too have come to a halt. Worse still, the absence of a vaccine compounds the uncertain situation.  The world is at the moment simply too shaken, and there are no definitive answers in sight as to when the uncertainties will end.

However, INDIA is in a fortunate position, with the IMF predicting it to stay clear of the recession trap. That’s because INDIA has acquitted itself far better, by managing to contain and keep the pandemic, within reasonable limits, while taking appropriate steps to prevent the economy from spiralling out of control.

Amidst all the gloom, there is a silver lining for the Indian Real Estate Industry!!! 

As has been proved so many times in the past, whenever there is financial uncertainty, people across the world often first turn to REAL ESTATE to park their money in. Though it is too early to say under the prevalent conditions, the fact is that Indian Real Estate industry seems to be in a fortunate position for the simple reason that the global trends are initiating the shift.

POSITIVE TRENDS THAT COULD ACT AS A CATALYST

CHINA as the origin of COVID-19 is fast losing goodwill, with a growing number of nations losing faith and trust in it. The Western nations, especially the US, UK, Canada, Australia, are extremely angry with China for having lied about the extent of the outbreak during its early stages. Time was lost for other nations to prepare for the virus and when China did reveal, it was too late and moreover, the data was all based on fudged figures.

Already Americans / Australians have started detesting Chinese people and time is certain when they would stop buying altogether Chinese products/ services or Chinese-made products/services.

If the trend continues, then there could well be the following positive scenarios.

  • Likely shift of foreign companies manufacturing units out of China. If that happens, and if India, with its skilled manpower at low-costs, can successfully lure such companies with the right incentives and infrastructure, then it could well emerge as the manufacturing and export hub in the next five years. Also, ‘Make in INDIA’ & ‘Start-Up INDIA’ which is a step in the right direction, could acquire more prominence, leading to creation of quality direct and indirect jobs, as well as an uptick in the demand for commercial spaces from prospective investors.
  • Likely spurt in the desire of Indians for a bigger living space, leading to demand for better and bigger residential spaces, including villas, farmhouses, plush flats.
  • Possible reverse-migration of Indians abroad to India, leading to an uptick in demand for premium residential apartments and villas.

HYDERABAD SCENARIO

Hyderabad was already much better placed than most Indian cities, before the pandemic created havoc, in the Real Estate sector, thanks to a host of factors, ranging from its unique geographical location to quality infrastructure, solid presence of world-class companies in and around the city, and so on. There were already many existing and prospective companies looking to expand their businesses in the city.

Positive trends that favour Hyderabad are:

  • Improvement in Metro Rail connectivity by leaps and bounds. Areas around the Metro Rail corridor across the city, are witnessing healthy demand for not only residential places, but also plots.
  • Lots of industries are shifting outside the Outer Ring Road Circle as per Telangana Government’s new rule. This has fuelled increased employability with lots of working-people gradually shifting to residential places in areas, closer to their work places in and around the ORR region.
  • Agriculturally-rich Nizamabad and Siddipet highways are witnessing positive trends. Farmers in these areas are keen to invest their savings in lands closer to the city. This has resulted in a spurt in demand for residential and farm plots on the periphery areas like Shamirpet and Kompally.

India’s liberalised Foreign Direct Investment policy, relating to expatriate’s participation in the economy as domestic investors, has also made Hyderabad along with some major Indian cities, hot destinations for NRIs interested in office real estate.

Further, Hyderabad’s vast commercial office property asset class offers a profitable avenue for NRI investors looking to maximise their returns and generate fixed income while at the same time, maintaining a low-risk investment profile. Further, there was and continues to be the added incentive of good capital appreciation as rental yield for Grade A offices, IT parks, Logistics centres, and REITs, in and around Hyderabad.

HOW REALTORS SHOULD ADAPT POST-COVID19?

Post-COVID-19 will see a different world. Real Estate industry will be no exception. Like other industries, will need to adapt and adjust to the new normal. While staying continually updated with the latest information about COVID-19, real estate companies need to devise new ways of business continuity with new strategies and assess risks on an ongoing basis to ensure that their business plans adequately address the upcoming challenges.

Disruption caused by COVID-19 should be responded with smarter work ways like:

  • Initiate Virtual open-house tours where listing brokers are available online and advertise the time available for a walkthrough of properties;
  • Facilitate ‘Closed Home Opens’ whereby they are available by appointments only; Whatsapp Video appointments to qualified buyers are one such instance.
  • Put Live Videos in popular social media outlets like FACEBOOK / INSTAGRAM, promoting Real Estate properties to the marketplace.
  • Handshakes replaced by Indian style ‘NAMASTE’. There should also be adequate Hand Sanitizers kept ready to cater to not only the client’s needs but also staff’s requirements.

Then there are always the Smartphone’s to pick-up and ring interested clients. The golden rule is to shun the ‘Wait & See’ approach and instead stay proactive, communicating with the marketplace.

To stay on the right track, interested real estate property clients could do well to enlist expert advice. Herein, there are few better players in the marketplace to approach than BIG REALTY.

Premier Real Estate Consultancy Company in Hyderabad, BIG REALTY offers investors, builders, and buyers, comprehensive end-to-end services in Real Estate Sales & Marketing relating to all types of properties from Flats to Plots, Villas, Gated Communities, and Agriculture lands for residential and commercial properties.

Furthermore, in keeping with its status as a leading Property Consultancy Company in Hyderabad, BIG REALTY assists investors, builders, and buyers, with turn-key solutions encompassing Legal Certification, Market Research, Financial Services, & Sales & Support.

Author: Sreekanth Rayini

For more visit our website at https://www.bigrealty.co.in/

2 thoughts on “BLOODY COVID CAN BE A GAME CHANGER FOR INDIAN REAL ESTATE INDUSTRY

  1. I have been following your blogs. Truly here we are talking about game changer.
    Amazing views and share of thoughts. Keep continuing your good work Sreekanth. All the best.

    AVNI Group of Companies

    Like

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