Ever since the Coronavirus outbreak started, the country has been brought into its nationwide lockdown. The national lockdown is mainly imposed to curb the spread of the novel coronavirus where the pandemic has shocked each and every business in India, barring most of the essential services.
Real estate is one such business that got hit badly due to the pandemic. Also, the dimensions of the effect are unknown. This makes it even more difficult for the real estate owners to predict the damages that this pandemic is going to rest at their door.
Some real estate owners hire a Property Management Company to untangle the issues and foresee the problems that may come their way.
The Coronavirus Pandemic – an opportunity?
With every problem comes an opportunity.
Clearly, this is a very tough time but, in this phase, you can focus on the funds, and luckily you also have enormous time now. Besides, this is also a good opportunity for real estate holders in India. The crisis began not today, it’s been hitting the real estate sector for like a year now with various factors.
However, the prices of the properties are likely to go high irrespective of the current situation due to the pandemic.
Effects of Covid19 on the Real Estate Sector
It has not been a great time for the Real Estate Industry since the complete nation went under lockdown with severe restrictions in March due to the outbreak of novel coronavirus.
The most important factors of the Real Estate sector are as follows,
Real Estate is said to be one of the sectors where the demand for manpower is high. The main problem that the real estate sector foresees is that there would be no manpower. Initially, the workers would have started working for the company under a contract, now that there is no work, there is no money for them to even feed themselves. So, the workers have started going back to their hometowns in large amounts. It’s going to be very difficult to pull the workers back again.
Even the well-funded projects are facing delays due to the absence of liquidity. There are around 4.66 Lakh units across India that are yet to be completed will face severe delays. If you think about the current situation, new launches may also face a severe hit and witnessed delays. The demand has got slightly reduced over time. In times of these crises, a Property Management Company is one of the much-needed supports to fight back the problems that you already have and the problems that are yet to come.
Is recovery going to be difficult for Real Estate post-COVID-19?
As we all know that the Real Estate Industry is one of the most affected sectors due to the Covid-19 pandemic. The pandemic is still on its roll and we have no idea when is this even going to come to an end.
The effect of Covid-19 may stand still and may take years together for recovery, they say. Also, this could also be a part of us now and can be called the “new normal”. The Real Estate Industry should foresee the problems and invent innovative and productive techniques to overcome the crisis. At least enough to meet with the new requirements. Since the real estate sector needs new ways to cope up with the prevailing situation, a Property Management Company is expected to come up with new techniques to improve the situation of the real estate owners.
Employing a Property Management Application is considered wise during this situation.
You must have understood from the points mentioned above that the recovery is going to be a lot more difficult than you thought it would be.
In order to protect you from the potholes ahead on the road, guidance from the Property Management Consultants are very important. Professional Consultants are totally aware of the current situation and are already helping many property owners with their properties. This makes it easier for them to assess the current situation and give you the desired solution for the safety of the property.
The imbalance during the pandemic is very likely to drive the potential buyers to go for nearly completed properties and not during the new launch, this won’t apply for the brands they trust. As already insisted, the real estate industry would need to work out and come up with new ways to effectively deal with the emerging requirements to sustain itself.
However, new launches will not come to a halt, but will definitely slowdown in the recovery state of the pandemic for a while. It is said that the demand for all the property in all the stages is going to be there and can see an increase over time.
But somehow, the product and the factors that excite the potential audience shall be different from what we have today, for instance, if you are a buyer and you want to buy a property post the COVID pandemic, what will you check for? You will see if there are enough facilities for a person or a family, like open areas, recreation spaces, and also you will see if your property is at a considerable distance from the significant other property.
As mentioned earlier, there could be a rise in requirements of the larger personal spacing and more open areas like balconies, this will push up the sales of new unit areas.
In the same way for a residential space, the need for social distancing demands in redesigning the cubicles and workstations. Moreover, centralized air conditioning will also require technological interventions to curb the spread of viruses.
In days ahead, there should be the need for the avoidance of touch controls for lifts, lights, etc., and regularise using voice-activated controls.
The current real estate condition with a large number of delayed and unfinished houses makes the buyers go towards nearly completed projects, which will demand the builders to pool in much larger investments into their projects.
Making ways for these increased investments would create an additional financial burden, which will require completing the projects in a very short time possible for them to sell their properties to the buyers in order to generate resources. Such cases can be dealt with easily with the Property Management portals and release you from all the lead generation stress.
You can lessen the construction time if you start using construction technologies. The technologies for modular construction are already in use to some extent, but post-COVID this could become the new normal.
The use of Property Management Applications could see an increased hike in terms of usage. The surge in the requirement of quality for the customers of today also requires industrialized construction in a big way. The ongoing COVID pandemic would definitely play a major role in the improved usage of Property Management Applications.
We have no idea as to when this pandemic is going to see it’s ending. But there is a hope that this will change the real estate sector for the better. This should be considered as the chance to reinvent techniques used by the Real Estate Industries all these years. This recovery from the COVID-19 pandemic may take months together and when it recovers, it employs new techniques and technologies and would also witness a hike in the sales thereby increasing the need for Property Management Companies and Property Management Applications.