World is evolving and Real Estate trends are changing at a fast pace in this era filled with pandemics, economy fluctuations, change in standard of living, and climate change. A real estate player needs to understand the trends completely before investing time and money in the market. Over the next one to three years, the real estate market is likely to see a lot of change, from how realtors do business to how people buy houses.
1. The COVID effect:
The pandemic has pushed the boundaries of people and changed people’s state of mind in regard to how they want their home to be like. Now they want it to be more spacious, more livable, with indoor and outdoor spaces as well. We have seen a huge increase in demand for residents moving into single-family rental property to gain more indoor and outdoor space attached to their unit, and many are applying sight unseen. People has started to be prepared for the “next pandemic”. They want to be comfortable enough within the 4 walls of their home, with more activities taking place inside the home, enough for living, entertainment, career/job work, working out, school and more.
2. Co-working spaces:
Co-working spaces are essentially shared workspaces. They offer affordable office space for those looking to escape the isolation of a home office or coffee shop. These shared workspaces offer a suite of office-like amenities such as hot-desks, private meeting rooms, kitchens, coffee and more. As the COVID starts taking a turn and the country gets back to normalcy day by day, corporate is witnessing a shift in choices. Co-working spaces are getting into trend as they are more flexible and affordable too. The economy is uncertain so the idea of investing in a permanent working space seems to go in vein. Large tenants are looking for shorter leases and scalable managed spaces. Demand for fully outsourced, customized offices is here to stay.
3. Development of suburbs:
Development in suburbs is comparatively cheaper, this is a universally accepted fact, but especially post COVID the demand for developments have increased. With remote workers rising in quantity, we’ll see the migration away from major cities to more affordable, spacious hubs like the suburbs. Additionally, millennials’ desire to buy or rent single-family residences will remain a growing trend in the real estate market.
4. Inflation and interest rates:
The statistic shows the inflation rate in India from 1986 to 2020, with projections up until 2026. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. Largest impact on real estate will be created by rising interest rates. There is no way that banks can continue to lend at 2% interest. It’s not feasible. At some point, reality will take over and we’ll go back to more historic interest rates. As soon as that happens, buyers will have a harder time securing financing, and home sales will slow down.
5. Need for automation and digitalization:
The rising competition and industry complications demand a solution for digitalization of working. An ERP or business management software is required to eliminate human error and boost productivity that occurs in real estate and construction business processes. Software like Real Builder Construction ERP streamlines and automates all business processes, such as sales, human resources, procurement, inventory, etc., with the latest technology to deliver insightful and meaningful data/information.
For more enlightenment you can refer to the blog mentioned below that elaborately explains top benefits of construction ERP software in the Real Estate Industry
