While the Covid has created havoic amongst many businesses across industries, Real Estate Sector seems fighting back with a 45% increase in the number of bookings during the Oct to Dec quarter of 2020 V/s the July to September of the same year. It may take few more months for the city’s real estate to reach the pre covid levels but the spike in sales during from Oct 2020 onwards has given a much-needed shot in the arm for the real estate players in the city.
The industry witnessed a great demand in the ready to move properties compared to under construction properties. This can be attributed to the fact that the majority of the buyers are looking at End-use than for Investment purposes. The fact that working from home is the new normal for most of the IT companies and can continue for many more months / Years to come, the property buyers are sort of upgrading to a bigger home with an extra room for a space to work from home is something that is driving the sale.
There has also been an unprecedented demand for Villas around the North Bangalore Region, Easyprop Realty spoke to a builder who has a Villa project in North Bangalore, the builder sold more than 60% of his inventory post covid, the demand again seems to be from the End-use customers. The buyers are looking at an independent Villas in a gated community that would offer good open space, greenery, and other amenities. the majority of Villa customers are the ones who are currently living in an apartment complex who have experienced the partial seal down sort of an experience during covid last year and would now want to upgrade to an independent house / Villas.
There has been a lot of enquiries / Transactions done by NRI’s in the city too during the last quarter, Easyprop Realty a new entrant into the real estate brokerage business. NRI's are trying to cash in on the price correction/distress properties and an attractive rate of interest from the banks is also pushing them to invest in real estate along with the domestic buyers who are also trying to cash in on the attractive rate of interest.
It might take some time before the Rental market comes back to normal in Bangalore, Easyprop tried talking to many firms dealing in commercial real estate and understood that the clarity will be there only once the second wave subsides …many IT firms might continue work from home forever this might be a grave concern for the commercial real estate and the residential real estate investors in the city.
As per real estate Experts, the real estate market was anticipated to recover completely by Jan 2021, given that enquires, site visits, and sales had started nearing the pre-COVID levels in most cities across India. However, the resurgence of the second wave of Coronavirus by March 2021 sparked fears far worse than the last year. With several cities like Mumbai, Pune and Delhi NCR, Bangalore undergoing partial lockdowns, and masses struggling for healthcare, the realty sector has seen another blow. Buyers have retracted once again from conducting site visits, thus slowing down property transactions. The industry experts are of the opinion that the recovery will be highly dependent on the way India deals with the second wave of Coronavirus.
Why the real estate market in Bangalore may flourish post-Covid:
A global survey suggests most employees want to return to the office with 1-2 days working from home each week as "ideal",
Offices may become mini urban hubs enabling socializing, learning, and entertainment,
Post COVID-19 pandemic, there will be a heightened focus on the value of human experience in the future of work.
The world of urban living and working may appear to be in flux, but its foundations are deep and secure. Contrary to some predictions made in the midst of this terrible pandemic, a dynamic and reimagined future is taking shape in which the world’s major cities will thrive, characterized by the vibrant and distinctive office, cultural, retail, and residential profiles.
The article was written by Arun Narayan, Easyprop realty