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How Real Estate Has To Evolve In The Post Covid-19 World

Covid-19 has ravaged the entire world, and killed several economies almost overnight. And although its rampage is not nearly over, we are now living in what is being called ‘the new normal’. It is nothing short of a post-apocalyptic scenario which requires almost everything to start from scratch. The economic crisis has hit a number of sectors, caused mass layoffs, job losses and pay cuts. Therefore, while the previous institutional measures have largely been focused on saving lives, it now must be directed towards saving livelihoods. Among the sectors that have taken the hardest hits is real estate, and it is now trying to find its footing in the new world. But to do so, it must evolve and adapt to the needs of people in the new normal.

A New Hope For Real Estate

This crisis has given the world an opportunity to fix old problems and rebuild the system with significant improvements in place. Like all other sectors, real estate needs major restructuring and incorporating better processes, to make the most of the new opportunities and cushion against the possible new threats. If the pandemic has taught us anything, it is to be ready for uncertainty. This applies to both real estate companies and home owners.

  • Increased Demand In Residential Real Estate

The safest places in this pandemic is probably one’s home, where they can make the safety rules and implement their own standards of sanitation, thereby somewhat ensuring health and sanity for all. Therefore, a large section of the population, previously living as tenants, are now wanting to turn homeowners, which presents a brilliant opportunity, and holds promise to stabilise the sector.

  • Promising Investment Option

The global market has weathered an unprecedented blow, with everything from the share market to FOREX crashing and stock prices of even the biggest companies hitting rock bottom. Therefore, in a bid to secure assets better, the investment savvy urban population or NRIs with a big disposable sum are slowly turning to real estate as a better alternative. This could lead to a surge in demands, further making things better for the sector.

  • Getaway Homes

With travelling off-limits and social distancing an unsettling reality, a larger fraction of the urban population is slowly taking to the idea of buying a ‘getaway home’ away from the city, to break the monotony of routine and seek temporary refuge. The demand for villa style homes with resort like feels might spike in the coming days.

Adjustments Needed To Be Made

The new world has given way to new needs among homeowners, and real estate must evolve to accommodate those.

  • Architectural Modifications

Since ‘Work from Home’ has become a norm, living spaces need to be designed more ergonomically, allowing for a better working experience. In most cases, there now have to be provisions for home offices.

  • Spacious Layout

Commercial and office spaces need to be larger with a lay out that allows for team work but while maintaining social distance, privacy and safety. Their area will need to be significantly larger, as a result.

  • Financial Aid

Since this crisis has led to widespread unemployment and pay cuts, there need to be better financial measures in place, so people can buy houses at reduced interests, possibly with a longer payment window.

  • Digital Transformation

Real estate was formerly completely dependent on migrant labourers. However, in light of the recent migrant labour crisis, the sector needs to employ automation functions, to curb the said dependence. Additionally, the selling model also needs to change and be taken digital, so buyers not only view, but experience homes online. Augmented reality and online platforms need to be made more widespread and accessible for all.

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