Global economies are grappling with an economic fall-out in the wake of Covid-19 pandemic, while living with Covid-19 pandemic seems to be the new normal every industry is adopting ways to get back as close to pre-Covid times as possible. The real estate sector is gearing up to initiate and adopt changes to turn the tide in these troubled times.
Investments into Real Estate in Pune also took a hit in last few months but things have started looking up now.
Let us explore how Covid-19 Pandemic augurs’ positivity for Real Estate Sector in Pune:
Tennant Woes/ Deferred purchase earlier but now willing to buy
There has been pent-up demand from Indian home buyers who were looking to buy a house before the pandemic. Living with Covid-19 being the new normal, they would still want to go ahead with their plans to buy their homes within a year. In these Covid times, individuals/families living in rental homes have realized the importance of being in their own homes; the NRIs have faced challenging times in their present domiciles and are looking at creating a safe haven in India. This spells well for the real estate sector in Pune too. While demand may be sluggish, there would be buyers looking for both budget & luxury housing options.
Real Estate as Investment
For those who lost money in Stock Markets in the aftermath of the pandemic are considering to shift to real estate for investment. In fact individuals are looking for making investments into Real Estate, Fixed Deposit, Gold and Stock Market; in that order. All in all the real estate will be ‘positive’ for both end users and investors. Talking of Pune, its suburbs give you many housing options and flats under 50 lakhs in Pune, Talegaon being the hotspot.
Good Deals Available:
Though the Indian real estate market is reeling under the COVID-19 impact, market experts say that it can be a very positive time for home buyers as they are at an unprecedented advantage to negotiate good deals on ready-to-move-in options. Quite a few builders have huge unsold inventory with ready to move in flats. Homebuyers are also likely to benefit from all-time-low interest rates on home loans with lower EMIs. Many developers are offering schemes wherein you book a flat now and pay later.
Some states are now mulling the introduction of e-registration of property documents, thereby completing the entire value chain. This will not hinder work and will fulfil the social distancing norms too.
Digitization in Real-Estate Industry
In coming months, technology will become an integral part of sales, both online and offline, and will play a vital role in real estate in India. With most migrant workers having left the work places, it would also need to adopt automation at sites. With Work from Home (WFH) concept been implemented across all industries, the real estate sector will soon have immense demand for flats having additional space for home offices leading to new architectural layouts.The coming months will also see demand for business centres and more open spaces in post Covid-19 world.
Virtual Reality Platforms
Potential home buyers earlier preferred to visit sites in person to evaluate whether a space is suited to their requirements. In times like these when it is not possible, there exist a range of 3D interactive tools with virtual reality (VR) technology that will enable users to conduct virtual tours of potential sites to visualise how they might look in the real world.Not only developers even those renting out their flats would need to use this technology.
There is no denying that COVID-19 lockdown has accelerated technology-led home buying in India, making it possible to inspect properties online as well as negotiate and finalise deals. Real Estate companies are already working on this to keep up with the times. Virtual site visits will soon become a reality and a large chunk of the property selection and purchase process will be done digitally.
Proximity to Work-Place
Work from home being a stop-gap arrangement for manufacturing/service and other industries (requiring customer interaction/manual intervention), proximity to the workplace will be highly valued. So while the conventional residential hotspots will grow, so also projects in city suburbs in close proximity to employment hubs. For e.g. people working in companies around Talegaon would prefer to stay in that area. Besides property rates are low too.
Slowly we shall also see developers factoring in aspects like job security, salary cuts for the home buyer; offering hand-holding to help the buyer through difficult times.
Other Commercial real estate will most likely see demand for larger work spaces keeping social distancing and safety aspects in mind.
Buyers will benefit the most even in these troubled times. Banks are offering home loans at very low rates; you may opt for a Fixed Rate if you wish to keep a stable EMI. The EMIs will be low. You may be able to increase your loan amount as against higher rates earlier. Developers have unsold inventory, you may negotiate good deals. There could be price correction too along with attractive discounts and freebies being offered.
Another beneficiary would be reputed developers with good project delivery status and quality standards will have the best bet. There would be enhanced confidence level among the potential home buyers in the backdrop of this crisis. Buying a home during pandemic is risky with a new developer/one with bad reputation as they might go bankrupt, may not deliver in time etc.
Namrata Group is one entity with over three decades of experience in real estate in Pune. The Group is holds excellent reputation with regard to credibility, good construction quality and a proven track record of timely project delivery. If you are looking for any investments into real estate in Pune, you may check out projects from Namrata Group. They offer a variety of projects among best places to invest in the city. Buying a new home during pandemic may not sound wise but spare a thought and make most of this opportunity!