Changing trends in residential housing projects in 2020
The current lockdown owing to the coronavirus crisis has hugely impacted the world economy as well as a majority of sectors across the globe, including real estate. However, there lies an opportunity in every crisis, and Covid-19 looks no different.
All industries including the real estate sector in India are now diligently working to innovate and strategize their business. Among the key noticeable trends, the residential sector is all set to embark on a different growth trajectory with ‘home ownership’ gaining significant preference among the new-age millennials and Covid-19 hasn’t dented demand for affordable homes. A few of the trends are stated below –
Covid-19 hasn’t dented demand for affordable homes –
It was widely anticipated that the affordable segment would be the worst affected in 2020 due to Covid-19 as concerns over its target audience’s limited income and fear of unemployment continue to rise. However, it doesn’t seem so. It is also likely that in the current Covid-19 situation many buyers having a higher budget previously would have actually reduced it. Many would not want to lock-in a large amount of money in such uncertain times. Instead, they would buy a more functional residential property based on their current needs only.
Hyderabad saw maximum bookings –
The number of bookings in Hyderabad observed a massive surge during the pandemic. Developers focusing extensively on digital sales tools are at an upper edge in crises such as Covid-19 because despite lockdown they were able to close sales effectively which opens up new doors to all the real estate players in the sales segment.
Technological transformation –
Technology has entered each sphere of our life. It shows its influence on the real estate industry also. Real estate companies in Hyderabad and other cities understand this fact that the families are looking for residents, requests for smart homes and Eco-friendly environments.
The concept of augmented and virtual reality is picking up pace where buyers can experience the residential housing property without physically visiting it. India could potentially become a hub for blockchain technology in the real estate sector as it will bring the necessary confidence back in the system.
Market Consolidation to become more pronounced –
While the overall home sales remain weak in the country, the top developers have still managed to show sustained sales of residential properties in major cities. These developers are also striving to reduce their debt by hiving off assets, while the smaller firms are struggling to survive. The number of property firms tipped into insolvency has more than doubled since last year and more and more real estate developers are looking into planning projects around Residential housing to reap maximum benefits.
Growth of new segments –
The real estate model in India has changed quite a bit in the last couple of years. The year 2020 will see the industry grow in terms of newer policies aimed at improving buyer sentiments and the sale of affordable residential housing. The definition of ‘affordability’ is changing as affordable residential projects have started including amenities that typically luxury projects offer. The residential segment will also see more traction from the buyers with increased demand for co-living and affordable spaces.
The real estate industry has evolved from being a brick and mortar driven the industry to a service-driven product offering. It is important to customize the offering according to the changing dynamics of the market. In the days ahead, one can expect a flurry of changes in the way these offerings are structured across markets and segments.