The 2nd wave of Covid-19 has been much worse than the first one. The real estate sector has seen a change over the past few months due to the dynamics of the pandemic.
The thoughts of various real estate experts were “While the number of visits to our project site offices has reduced due to the Covid regulations, we are noticing that the visitors that we do get are genuine end-users looking to invest in a home. As a result, closures are occurring at a way faster pace than they did in pre-covid times. Homebuyers also are taking advantage of loan interest rates currently being at their lowest. Post the first wave of the pandemic, our teams are working on floor plans and styles to make sure the efficient utilization of space for Villa Plots for sale in Chennai. While it’s easy to mention that buyers want larger spaces, in reality, affordability constraints make it necessary to possess efficiency in design. Ensuring that homes are multi-functional, have dedicated workspaces, and have silent zones or relaxation areas are vital features to incorporate in the homes we build today. In addition, developing communities with a plethora of amenities including open green spaces, activity spaces, work pods, and Wi-Fi enabled zones, has now become extremely important in Gated community plots in Chennai.
The scale of impact in Villa Plots for sale in Chennai till now
The unprecedented scale of the impact of COVID-19 on Indian land can be gauged from the fact that the sector has incurred a loss of over Rs 1 lakh crore since the pandemic broke out (Source: KPMG). According to a report by KPMG, the pandemic resulted in a serious liquidity crunch for the real estate developers of Villa Plots for sale in Chennai. The credit shortage brought down the residential sales from four lakh units in 2019-20 to 2.8 lakh units in 2020-21 across the top seven cities of India according to Land promoters in Chennai.
As per the 28th Edition of Knight Frank-FICCI-NAREDCO property Sentiment Index Q1 2021 (January – March 2021) Survey, the ‘Future Sentiment score’ saw a decline from 65 in Q4 2020 to 57 in Q1 2021 because of uncertainties amid the spread of the second wave of COVID – 19 infections.
Predictions for the year 2021
The year 2021 was slated to be a year of recovery, and the confidence was seconded by the vaccination drive unrolled by the Union Government. However, the recent upsurge in various pockets of India (especially Tamil Nadu) has compelled the investor community to remain in a cautious mode.
The already uncertain environs fueled by the recent resurgence of the pandemic have compelled financial institutions to avoid risky investments. This could increase the woes of the already cash-strapped land sector.
Further, lockdowns and restrictions on construction activities are certain to affect the scheduled delivery of real estate projects (Villa Plots for sale in Chennai )across the nation.
According to a report by Knight Frank, the Private Equity (PE) investment in the land sector in 2020 stood at around $4 billion. This was significant but the PE investment in 2019 at around $7 billion. The report highlights that the taming of the resurgent second wave, clarity on vaccination drive, and sense of structural changes will only boost the investors’ confidence in the sector.
In the year 2021, property players have avoided offering festive schemes and haven’t promoted their projects in media, thinking that the interest of the shoppers might not be as high as it was in previous years because of the resurgence of COVID-19 and rising uncertainties.
However, contrary to the expectations, we’ve found that buyer’s enthusiasm to have a flat/home is even higher compared to the last three months. Thus, we are extremely positive to realize superior sales figures compared to earlier months. Having said that, effective control over the resurgence will have an immediate effect on the investors’ confidence. As the lockdowns also are leading to job losses and pay cuts, the image is going to be cleared once the pandemic is tamed and the infection rate is brought down.