COVID realty is realtors have to look for opportunities in non-metros as well in 2022, writes KAUSHAL AGARWAL*
The recent surge in demand for housing, against the backdrop of pandemic-inflicted necessity, low interest rates and reduced stamp duty, has given an indication that the real estate sector is on track.
However, the absence of an industry status, a single-window clearance and more financial options for developers are some of the issues that may eventually come to haunt the sector. Moreover, the Covid-19 pandemic has changed the demand and supply dynamics. Even though the concept of owning a home has gained renewed importance, the very notion of an abode has changed.
Today, the new remote working model has not only reduced the need of buying homes in Tier 1 cities, where most offices are located but also created a new market in the Tier 2 and 3 locations.
This reverse migration revealed that employees would prefer to work from Tier 2 or 3 cities and if given an opportunity they would buy bigger homes in smaller satellite zones rather spending big in the plush cities.
This new rising trend has indeed created a niche market for the developers and will provide opportunities for real estate players to expand their operations in non-metro cities in 2022. At the same time, it has also forced the sector to reinvent its business model with multi-blend projects to meet the new aspirations of the urban rich who are looking for extra space and luxury in the heart of the big cities.
To put it the other way, the real estate companies that adapt their investment and development strategies to stay ahead of changes in the real estate scenario will be best positioned to reap the benefit of 2022 and leverage the overall Zeitgeist. (*The author is Chairman, The Guardians Real Estate Advisory)