With the aftereffects of pandemic and subsequent lockdowns slowly dying down and vaccines on the block, anticipations are high for the coming times. Due to worldwide pandemic, there is no sector of the society that has remained untouched and the real estate segment is no different.
The year 2020 started off on a positive note, but the subsequent outbreak of Covid-19 and resultant global lockdowns heavily disrupted the supply chains and dashed all the hopes for the segment temporarily. Additionally, with offices closing down and work from home taking the centerstage, demand for commercial properties plummeted like never before. Potential investors and home buyers hesitated to invest in homes as the economy seemed enervated.
Although officially, India is still under pandemic, people have now started trickling back to public places such as markets, shopping malls, restaurants etc with many Indian corporates returning to their workplaces. As we step into the new year, let’s take a quick look at the expected real estate trends to prevail in 2021:
1. Rise Of End User:
The desire to own a home over a rented place has grown manifold in the pandemic times. As work from home took centerstage, the end-user is reportedly now willing to move away from the populated and polluted city-centric areas to more affordable suburban locations for an own house.
2. Theme Homes:
There is expected to be an increased demand for theme-based real estate projects, such as comfort homes, kid-centric homes, homes with mini-office and retirement homes. Larger layouts with higher safety, hygiene and captive amenities are expected to rank high in buyers’ wish list this year.
3. Stable Property Prices:
Unlike the popular notion, there will not be any free fall in the property prices in 2021. However, the prices may dip slightly as with more under-construction and ready-to-move houses available for sale, the real estate developers will face the challenge of selling their properties. Therefore, they will have to quote their flats and houses at competitive rates.
4. Resurrection Of Co-Working Segment:
The ‘co-working’ players are highly likely to take up more spaces, being a popular alternative to working from home, in locations that would be closer to residential pockets as companies will gradually shift back to normal office setup with reduced number of employees required at the workplace.
Satellite offices in non-conventional micro markets, like outside the CBDs, will be absorbed faster and more effectively.
5. Investment in Commercial Realty:
REITs will continue to be the key theme and we will have more REITs hitting the capital markets in 2021. As a result, an inflow of investment is expected in commercial real estate which is sure to guarantee stable and lucrative returns.
6. Prop-tech and AI:
Although the industry adapted to technology and remote-working in a very short time due to lockdown, the trend is expected to continue in time to come. There is expected to be a growing emphasis on data-and-analytics, machine learning, and artificial intelligence in Indian real estate. With tech-led intervention like AR and virtual tours also saving time and effort, these trends are definitely here to stay for long.
Strides in the field of big data and analysis will continue to help real estate platforms by providing real-time price analysis and forecasting future price fluctuations.