Impact of Covid-19 on Real Estate Business: Negatives & Positives

The ongoing covid-19 crisis has completely shaken the Indian economy. The adverse impact is being felt in various sectors of business. For example, real estate companies have become a victim of this. The property dealers in Newtown, are worried about the liquidity factor, preserving value, compliance issues regarding new safety rules, and a lot more. 

Statistics to prove the decline in real estate business in 2020

• A 40% dip in the completion of real estate projects is a glaring example of how severe the crisis has struck. 
• Several leasing deals have been deferred or canceled in spite of being in the final stage of agreements.
• The absorption of office space has also declined by 30%.

The pandemic has urged companies to review and analyze their real estate strategies. There is a greater importance to employee well being, sustainability, building resilience, and maintaining a positive attitude at work. There are more stringent laws and rules for safety measures. But more flexible working practices that are shedding some light on the otherwise bogged down business productivity. 

The Bright Side of the scenario:

The positive side is consumers post-Covid will look into more safer and efficient properties. The previous craze of energy-intensive buildings will decline since the lockdown proved its disadvantages. The demand for a comfortable living will be high given the remote working condition is here to stay. New safety and security measures will contribute to better prospects of investing in a particular project. 

How real estate investors can grow their business amidst the pandemic?

• Investors should be proactive in dealing with their clients and their tenants’ queries regarding safe and efficient buildings.
• They should be open to change their perspective, planning, and design tactics. Should resort to digital and sustainable factors, The idea is to reinvent so that it can seemingly fit with the ongoing changes. 
• Investors should focus on technology guided strategies to meet the greener, and decarbonized society norms. 

Contact Property 360, the leading property brokers, and property consultants in Newtown. They have been in business for a decade and have vast expertise in property-related matters.