Bengaluru, NFAPost: Anarock, leading realestate research firm, came up with its first half report on residential real estate market which states that Bengaluru continues to be the most active market in India’s residential space.
Anarock report also pin points the fact that the nationwide lockdown imposed due to the Covid-19 outbreak has impacted business and industry alike in Q2 2020. It has been a watershed year till now where all economic activities are at their lowest levels and are facing challenges to restart.
“As economic activities halted, the real estate sector witnessed a disturbance in the raw material supply chain which led to limited availability and rising input cost,” states Anarock report.
Availability of labour was another challenge which severely impacted the construction activities at the project sites across the country. Fear of economic slowdown and the probability of job losses led to a weakening of consumer sentiments.
Also, the homebuyers were apprehensive about the future of real estate projects considering the imminent delays which played on their minds and reflected in their purchase decisions.
While the impact on the residential segment has been high, we believe that the demand is likely to resurface during the second half of the year. The festive season falling in the last quarter of the calendar year is likely to kick-off the revival cycle.
It is anticipated that the vaccine against COVID-19 will be available by then or the masses will have developed immunity to combat the threat posed to their health and so the situation may start to improve.
5 KEY TAKE AWAYS
- Consolidation to rise causing branded players to gain market share to the tune of 75% – 80%.
- Township projects that account for only 5% across the major cities are likely to rise in the future as residents would prefer to work-live-play in controlled environment.
- The design specifications are likely to be altered going forward as there will be a higher demand for flexible homes that are capable of functioning as office and classrooms if required.
- Prices are likely to remain range- bound as developers will be keen to liquidate existing inventory.
- Work from home is likely to find acceptance in the Indian corporates, causing a spike in reverse migration of professionals. As a result, housing demand may gain momentum in tier II and tier III cities.