The coronavirus pandemic has affected our lives and the world in every way possible. The entire economy was brought to a standstill, and it was a slow and steady journey for it to reach its earlier position. Commercial activities of every nature were affected by the pandemic, and the lockdowns that came with it. Once the threat gradually reduced, these commercial sectors revived themselves, but they are now different from their old self.
The Evolved Real Estate Sector
Real estate is a leading sector in the economy, and has had its share of impact. In the post-covid era, the sector has seen a lot of changes which are mainly due to changes in dynamic between its various stakeholders. Developers, channel partners and homebuyers are the key stakeholders in the industry, and their demands are inter-dependent on each other. They have to operate in a balanced network for the industry to thrive, and this balance has been altered by the pandemic.
The choices and demands of consumers from the real estate industry have been largely altered. This new behavior is aligned with the challenges and problems that the economy faced during, and after the virus outbreak. The uncertainty that was being felt in almost every aspect of life has made the attitude of homebuyers extremely cautious and selective. The reasons behind investing in a home have now shifted from being a mere sense of financial security, to being a feeling of control and convenience due to trends such as social distancing and work from home. Home ownership is hence preferred over tenancies, and people are willing to contribute to real estate sales. However, they want properties to meet all their expectations before making their purchase, and it is now more important than ever for developers to understand their requirements.
The following are some emerging trends in real estate that can provide valuable insights into the industry and market, and the altered behavior of its stakeholders:
- Change in Consumer Sentiments:
Consumers are the driving force of the real estate market, and their sentiments shape the market. For the past two years, the lack of job stability has made people very cautious with their expenses. For a purchase as significant as real estate, most people have to take loans. For these loans, the rate of interest has been steadily rising which is further changing consumer sentiments towards the decision of property purchasing. Developers must be aware of these concerns of their consumers in terms of property pricing and should accordingly plan their projects.
- Change in Consumer Awareness:
The new-age consumer is very aware of the market, and this awareness has led to increased levels of scrutiny for developers. With the digitization of real estate marketing, every information relating to a property and developer can be easily accessed by consumers. They can inspect the property and compare prices, read testimonials by other consumers and ensure that the property they are considering is a good and solid investment.
- Rising Costs of Development:
A by-product of the pandemic and the stop in manufacturing caused by it has led to the prices of raw materials such as cement, steel etc. going up. These materials are crucial for the real estate industry. If their prices increase, developers are left with no alternative to earn profits from their business besides increasing the prices of properties. These higher costs affect homebuyers, which in turn disrupts the entire real estate sales cycle.
- Increasing Role of Channel Partners:
Channel Partners operate as a link between developers and homebuyers. They are essential in the homebuying journey since consumers rely heavily on them to understand their property requirements, suggest suitable properties and help them buy it for the best price. In the current scenario, consumers have a lot of property information readily available, which makes the selection process more confusing. Hence, in the emerging new trend, brokers are heavily relied upon to accelerate the sales of real estate.
- Improvements in Home Design:
The buyers of today are very aware of concepts such as automation, sustainability of resources etc. due to the awareness that is being generated about them. They expect these to be incorporated into home designs as well. Properties that have automation in their features, and those which are constructed in an environmentally conscious manner are more in demand. Developers who include these features in their projects should make sure to incorporate these in their real estate marketing plans so as to make their properties desirable.
These trends are the current direction in which the real estate industry is heading. These can be used to the advantage of all stakeholders if they know how to correctly exploit them. BeyondWalls - an Integrated PropTech Ecosystem in India is the ideal partner for end-to-end real estate sales and marketing. It can help to navigate the market trends and elevate the real estate experience.