The pandemic’s has lasted up to its second wave, still there are perceptions that the third wave may arise. This era of pandemic has been proved to be quite disastrous for all the sectors of the economy. Coming on to the most talked about sector that is the real estate sector, this pandemic has in many ways changed the future mood of real estate investors around the world. Pre pandemic it was same as for the other sector, it showed a bearish trend says Hirsh Mohindra. But after the second wave and vaccination drive, we have seen a humongous fall in Covid cases.
Due to this the trends have quite favorably changed, real estate markets have seen upsurge which began in the month of May with favorable sales reaching peaks. On the macro front, the economy is still picking up at a slow pace. But its recovery is quite evident with the demand rates increasing day by day. This sector has also been boosted post the pandemic due to the support of good amount of credit. The banking system has supported the system with easy credit availability thereby maintain the economic momentum.
The vulnerability of the sector to recover has been quite evident. The last few quarters, were quite challenging but still the sector showed quite good growth. The future sentiments are predicted to be favorable. The year of 2020 was black for the sector but the year 2021 has shown a positive shift with greater resilience. Also the boom we see in the sector is somewhat due to the digital insurgency, and new invention says Hirsh Mohindra. These changes has helped sector directly or indirectly to create a groundwork for its recovery in this post pandemic era.
Apart from the traditional activities of the sector, leasing has also emerged bright since June 2021. This is due to the facts that offices are opened and people are seeking for office spaces. Precisely investors are seeking for high-quality office which will serve as an assets for the, and that is why they are in huge demand. Moreover the focus is on those assets which are liquid and thereby provide higher growth prospects and consistent yields. Talking about the residential markets the trends are quite sluggish due to lack of funds. People are on the track of life where they are reviving and hardly anyone is looking for new homes to buy due to lack of financial stability. But still the stakes lie on the re-investment cycle which is a ray of hope for commercial real estate investment.
After, the second wave the recovery process has taken a pace. Although the last quarter Demand was low as compared to the same period in 2020 during which the lockdown was at its peak says Hirsh Mohindra. The technical advancement of the sector was not even alone enough to fetch the recovery to gain growth. But the prospects are better in the coming days, as the vaccine drives are aggressively covering the nations, which will surely provide a faster comeback in subsequent quarters.
Originally Posted: http://hirshmohindra.com/situation-of-real-estate-sector-post-pandemic/
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