After the pandemic subsides
By Hakim Lakdawala, Group Promoter, Goodwill Developers
The COVID-19 pandemic and the subsequently imposed lockdown has created significant changes in the plans people had for the springtime. To stay safe and help fight against the disease, social distancing and self-isolation has become the new norm, and this has changed the way people function and interact. Many industries have suffered due to this, one of which is the real estate industry. Social distancing has reduced the number of site visits, and since real estate is a very ‘touch and feel’ high ticket purchase, this has impacted the purchase behaviour significantly.
One of the advantages of investing in real estate during this time is the rates of property. Currently, due to the lockdown many builders and developers are offering discounts and bonus offers to reduce their inventory. When the lockdown ends, these prices are set to increase again, thus making this time great for investment in real estate from a financial point of view.
Many industry pundits are hopeful about the state of the real estate sector post the pandemic though, especially in the commercial real estate sector. While it could face delays due to travel and extended decision making time, they are hopeful it shall be a small stumbling block. Many professionals are looking forward to the end of the lockdown to go back to their offices, keeping the demand for commercial spaces more or less constant. Sustained robust demand for office space had pushed leasing activity across the country in 2019 to a new record. Demand was expected to remain strong this year too, despite decisions being delayed for a little time.
The sale of real estate being impacted due to the current lockdown is said to be temporary, and a staggering growth in demand is in fact, expected once the situation normalises, business resumes, and the buyer sentiment improves. While the residential real estate market is expected to take more time to recuperate, the commercial market should show signs of recovery sooner. There will be a lag in operations for a period of time, but the commercial sector is expected to bounce back with great vigour, once the COVID-19 pandemic comes to an end.