According to Mr Vasishtha, there is an increased demand for bigger and more spacious residential properties of the “ready to move in” kind
Shashank Vashishtha
Reports suggest that the third wave of the Coronavirus is set to hit India in the last quarter of 2021. The real estate market in India has seen a sudden spike, with sales in June 2021 accounted for around half of all sales in the second quarter of 2021. On this note, Shashank Vashishtha, Executive Director, eXp India, provides insights on the various segments of Indian Real Estate before the approaching third wave.
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Residential Vs. Commercial
According to Mr Vasishtha, there is an increased demand for bigger and more spacious residential properties of the “ready to move in” kind. After the first lockdown, buyers are keen to upgrade their lifestyle and make their homes a safe space in which they can both live and work. Thus, a good absorption rate is seen in residential real estate. On the other hand, commercial real estate has seen a decline with little to no influx of rent. With the Work From Home model gaining popularity, tenants are renegotiating or even backing out of their agreements.
Commercial real estate has seen plans to open up under hybrid models to increase transactions. “It is expected that we can see a trickle of employees coming in on a roster system into fully managed workspaces,” comments Mr Vashishtha.
Second Homes
The new normal has brought forth the concept of Working From Home, which millennials have quickly embraced. Developers have taken advantage of this opportunity and launched projects in Goa, Mahabalipuram, Nainital, Kodaikanal, etc. The popularity of these spots increased as employees preferred to work away from the hustle and bustle of the metros. Young parents are investing in homes in remote areas as they can get bigger and more spacious houses. Mr Vashishtha adds, “Living and working from a remote location in tier II or III city means saving money while still spending quality time with your family in a vacation setting.”
Senior Living
NRI’s unable to make it into the country due to a scarcity of flights, young professionals moving to Tier I cities for their jobs, and people who have moved out of their native places now prefer to have their senior parents living close to them. Senior citizens themselves have become more open to the concept of assisted living. With opportunities to socialise, and facilities like food and medical help available at a moment’s notice, senior living has found acceptance as a “hassle-free ageing experience”, especially during the pandemic.
Resale and Pricing:
Due to macroeconomic factors, real estate prices dropped after the first wave and stayed the same after the second. Moreover, clients cannot come to a decision due to the loss of near and dear ones and financial and physical loss. Developers are also now trying to maintain the prices by offering freebies like car parks, furnishings, etc. Says Mr Vashishtha, “Some developers in metros now give vouchers. For example, a 50 lakh voucher for interior decoration after the sale. Similarly, the industry is seeing a surge of benefits without compromising the price.”
“There is a good demand for a resale of independent bungalows or plots in all metro cities,” he continues. The sector is frequently seeing high ticket transactions such as D-Marts and farmhouses.
The Real Estate Sector in India is undergoing a vital transformation that will make it one of the biggest contributors to the GDP in a short time. “We have exciting things to look forward to for the sector as a whole, despite challenges,” says Mr Vashishtha.
About eXp:
A subsidiary of eXp World Holdings, eXp Realty is a cloud-based brokerage agency launched in India in November 2020. Within just a year of launch, the company has begun transactions in major metros, including Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Jaipur, Agra, Indore, Surat, Ahmedabad and many more.
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