Despite the general gloom caused by the pandemic, the housing and real estate sales in the key markets of India have started to bounce back. This shows the immense potential of the real estate sector. The real estate industry employs the highest number of unskilled workers or employees in the country. Moreover, the real estate market in India is about to witness a significant price correction for the first time in a decade. However, the pandemic of coronavirus stalls businesses across the country. The prices of various real estate properties are expected to come down by 10-20% across geographies. Besides, the land prices might see an even higher reduction of around 30%. Amid this coronavirus crisis, several real estate firms are preparing for what comes next.
Many real estate companies are worried about what homebuying will look like in this new environment. It will become more important that these real estate companies boost profitability, home in on high-value leads, and optimize their sales funnels as sales may peak in some markets. The housing market and real estate sector have done incredibly well especially during this pandemic-driven recession. The record-low mortgage rates and demographics are few factors that are likely helping to drive demand. For instance, during the third quarter of 2020, the real estate sector of Hyderabad showed a 76 percent increase in residential sales. Despite the sluggish nature of the economy due to Covid-19, there has been a boost in real estate sales. According to a new report, a combination of favorable factors such as lucrative payment plans, attractive prices, and low mortgage rates reinforce the sector. During the pandemic, the real estate sector has thrived unexpectedly.
With significant growth in online demand, we are now seeing increasing digitization of the real estate sector. The buyers and developers are adopting products such as online booking platforms, virtual tours, drone shoots, as well as video calls. Apart from that, technology is playing a significant role in property buying and renting today. As property registration may move online in some states, we may be seeing a shift in the real-estate sector. Buyers will use technology to discover new homes while physical site visits will remain important. Since some buyers might make the real estate property booking online, these buyers are likely to make fewer site visits than before.
The work-from-home environment and prolonged pandemic are expected to further accelerate a digital transformation of the real estate sector. The real estate dealers and sellers are now following a more integrated approach to revenue generation. The Covid-19 pandemic has opened the doors to an alternate segment of rental housing. Besides, this market segment is expected to see further growth post-COVID-19. Many retail buyers are expected to be seen investing in rental housing rather than an absolute property purchase. Although this year has seen social unrest and a coronavirus global pandemic, the real estate market is surprisingly booming despite all crises. Home sales and real estate purchases have substantially increased amid the coronavirus pandemic.