Home Staging Tips That Will Fetch You A Good Price
With Covid-19 changing world dynamics, every aspect of every business had to face an abrupt halt, followed by a staggered restart which took quite some time to stabilize. This had a lasting impact on every sector - so much that it introduced new variables that reshaped the Trends for every sector. The economy has pretty much bounced back to its former glory - the pace picked up in 2021 and is expected to have a healthy rise yet again - but with near-permanent changes in the preferences, priorities, buyer behavior, etc., the realty landscape has largely transformed and needs to be thoroughly analyzed again.
First, let's have a look at what the trends in the Real Estate industry might be for this year.
This might seem to have little resemblance with the stress the industry underwent during Covid -19, but it is true nevertheless. And if we deep-dive into the various factors - some relatively new - the current uptrend the sector is showing seems all the more possible.
So here’s a list of a few key factors which have driven the Realty Metrics we’ve highlighted above. Now it may all seem technical, but we’ve broken it down to much simpler terms below. We’ll advise you to view them not only as reasons, but also as potential growth areas in the sector (not investment advice). Now let's get to the why!
1. NRI investors have increased
Due to the residential market's extended trough, investors are now looking for more productive assets. Investors would be able to diversify their portfolios and acquire ownership of an institutional-grade commercial property with the introduction of fractional ownership. Real estate also offers investors enough risk reduction because it is a stable industry compared to other asset classes that exhibit volatility, mostly because of their relation to the stock market.
2. REIT has enabled fractional ownership in premium properties which has strengthened the sector:
It is anticipated that, in addition to office space, fractional ownership would develop into a comprehensive model. Some of the categories that are anticipated to draw fractional ownership corporations include assets in industrial and warehouse space, planned land, apartment hotels, elder living, student living, co-living, resorts, and vacation homes. It has lowered portfolio risks, market shocks, and boosted returns through adequate diversification, fractional investing offers benefits that are too great to ignore. These elements would be very helpful to investors in a post-pandemic environment, assisting them in managing financial disturbances and achieving their long-term financial objectives through wise investing.
3. Digital Approach:
The COVID-19 pandemic has increased the stakes around digital access and participation as a result of the surge in economically and socially facilitated by digital activity, highlighting the reality that connection and the use of digital technology are dynamic goals.
When the Covid pandemic broke out, the world shifted to online. Online business, transactions and learning. Despite the difficulties the business had to adapt to a online / digital environment. For example, virtually assessing the house and how it would look with the furniture has greatly benefitted from the 3D tours.
4. Increase in demand for bigger houses:
“Fear of Missing Out ” was just a phrase until Covid happened. Everybody wants to live their dream life. A lot of homebuyers are now looking for luxurious and big space houses. As remote working has become the new “big” thing, they want to splurge and live in a comfortable space where they can have a different room to set up their workstation.
5. A significant shift from big cities :
Due to Covid, many people have migrated from cities back to their hometowns. Big cities like Mumbai, Delhi, and Bengaluru noticed a drastic number of people migrating back during this challenging time. Many experts have predicted this trend will continue for the next 4-5 years as many organizations have adopted remote working policies. These capital transfers are thought to spur economic development and raise the value of real estate assets in second-tier cities. With opportunities right at the door, demand for bigger houses in smaller cities has also risen.
6. Hybrid Workspace:
Many organizations are adopting a hybrid work culture. That is a mix of remote working and in-office working. No more leasing/ buying thousands of acres of space for working. A lot of co-working spaces have also sprung up to aid this.
7. 2022 a crucial year for Real Estate:
Keeping the current scenario in mind, the real estate sector is expected to see a healthy rise as the economy is again back at its feet. More than ever, builders are now promising spacious homes and a plethora of amenities. Homebuyers are looking for new investments and this only signifies an upward trend.
Owing to the economic recovery and positive outlook, the Real Estate industry is expected to experience steadfast growth. Safe to say this is a healthy post-pandemic recovery wherein both the parties, developers, and buyers are exceptionally happy to take part in the home buying process.