2021 is the year we have been looking forward to bringing what we learned in 2020, to practice. The year 2020 was full of self-reflection, making positive, permanent changes to life, forming habits that are good for our mental health as nature healed itself from all the toxins it has been put through for years.
Every market that had to bear the brunt of the lockdown, restrictions, losses pertaining to finance as well as emotional is slowly accepting the way things have shaped up. Some markets picked up immediately after the lockdown ended, while some found their own pace and tread carefully to bring things back to normal.
The vaccine must be out but the threat is still not completely mitigated. Some cities are still on the verge of a lockdown due to rising cases as people fail to follow the guidelines.
Loss of jobs across industries due to the next to zero demand from consumers led business to bankruptcies and entrepreneurs to insolvency.
The real estate sector was already in the dormant state post demonetisation, GST, and RERA. The year 2019 had a total of 850 applications in Karnataka for new real estate projects but the trend took a downward path in 2020 with only 540 new project registrations due to the onslaught of lockdown on businesses. Localities that experienced high demand before the covid-19 breakout, are now experiencing low demands. Places like Yelahanka, Hebbal, RT Nagar have piqued the homebuyer's interest. Whereas areas like Marathahalli, Electronic City, and Whitefield are not in the run.
It is safe to say that the already static Indian real estate market was hit the hardest by the Covid-19 pandemic during the first quarter of 2020 affecting the industries that work in conjunction with it. The near three month lockdown between March and June brought all industrial and construction activities to a halt or at least made sure of an indefinite delay in revival. Real estate was no different. But all was not lost even when the workers and laborers from the unorganised sector began migrating to their hometowns in order to stay close to their families until the lockdown was lifted which was nowhere near in sight.
Being the second largest employment generator in the country, the ailing real estate was given the first priority by the government in the form of initiatives during the lockdown. Financial sector such as banks and NBFC cut down interest on home loans to encourage people to buy their dream homes in their favourite part of the city as the demand for finished projects went up as people started to view apartments more than walls with doors. They started seeing apartments as potential workplaces. Hence, the need for 2.5 bhk and 3 bhk was and is still on the rise.
Bangalore realty had a different progression during the course of the nationwide lockdown. While some reports suggest that Bangalore real estate had wound up itself in the Covid wildfire that affected the top eight real estate markets in India, few correspondence reveal Bangalore actually witnessed an upsurge in new project launches like The Prestige City and home sales right after the lockdown was lifted. It was since August the piled-up housing units that buyers thought of waiting up on, started to get sold off expeditiously.
Physical infrastructure has always been the city’s issue and the pandemic only added salt to the wound by bringing metro major construction projects to a standstill which would have otherwise laid a foundation for people to buy more houses in areas owing to better connectivity. The indefinite, uncertain change was brought about when the labors and workers moved back to their hometown.
While many potential home investors have decided to wait it out and occasionally go through the property prices in their preferred areas, some invested money to improve their house back home embracing the new normal. Other factors that has caused Bangalore its liveability quotient and home buyers to shy away from buying houses were delay in metro line projects, the liberty to work from home that is, to work remotely, and the traffic issues in areas like Electronic city, HSR layout, and Silkboard forcing people to move to the peripheral parts of the city.
All things considered, Bangalore real estate is still doing better than other major cities like Mumbai and Delhi. If the predictions are anything to go by, leasing activities are said to be improved in the year 2021. Offices are said to run with full capacity, some have even started to operate with 30% staff. People would prefer buying villas or independent houses with gates for better security, and ensure social distancing norms are being followed.
Disclaimer: Any content mentioned in this website is for information purpose only and Prices are subject to change without notice. This website is just for the purpose of information only and not to be considered as an official website.