Ravaging the entire economy, displacing millions of people globally, bringing with it a sweeping change, the pandemic year 2020 had been unpredictable for every sector. Real Estate is no different- A sudden spurt of relocations with the comfort of work from home has led to an increase in demand. Coupled with this are record-low mortgage rates that have been a booster shot when it comes to real estate.
Here is our take on the ten things to shape the Real Estate industry in 2021 and the years to follow:
- Move to Suburbe
With extended periods of work from home, the urban dwellers found solace in moving to suburban neighborhoods hunting for a bigger space to own or rent. This trend is only seen increasing even after certain relaxations. This particular reason has contributed to the displacement of people and the spurt of housing demand that is going to continue for the next few months from now leading to economic activity in lesser-known suburban areas.
- High rise office destination
The new normal of working from home is here to stay for stay, transforming all sophisticated high rise offices into ghost spaces. The charm of high-rise buildings has fallen meteorically with the looming pandemic; this is to continue unless there is a concrete vaccination plan in place or for at least the next two years. For those of you who are investing or likely to invest in commercial spaces is recommended to evaluate further.
- First-time Buyers
The real estate industry for the first time is witnessing a historic number of first-time homebuyers in comparison to previous periods. Millennials in their thirty’s having increasingly shown a flair for buying a property in their name. On the Real Estate spectrum, the trend of single men and women buying homes is also seen to rise sharply for the first time. The underlying ownership sentiments would be speculative but interesting to watch for.
- Medium-sized towns on a growth trajectory
With lakhs of people moving to suburban towns and cities, the medium-sized cities seem to recoup quickly restoring a renewed macroeconomic equilibrium in these places, to an extent this led to an increase in the consumption level of these cities thus bringing in economic activity.
- Homeownership rate
It is interesting to see that for the first time the homeownership rate has seen a rise. Experts are of opinion that is a result of low mortgage rates, ongoing pandemic, and the new order of lifestyle. Homebuyers are now eyeing suburban and smaller towns where land is cheap than in cities. This will continue down the line even if the pandemic is seen subsiding.
- New Leadership at the Helm
As the nation continues to fight against COVID-19, the newly formed leadership is expected to bring some cheer to the Real Estate sector in the form of down payment assistance programs. There is also speculation about major backing for housing reforms and push for fair housing and community reinvestment policies that were rolled back by the previous administration.
- Slow down of Luxury Real Estate
Properties in the top 10% of the market are considered Luxury real estate, the state-of-the-art facilities, architectural superiority, sprawling spaces, exceptional amenities, and exclusive features are what make them called Luxury Real Estate properties.
The luxury homes which were once booming had practically paused because of the Pandemic, it has to hit a refresh button to start back to normal. The slowdown is evident because of the extended lockdown, halt in holiday plans across the globe, etc.
When one or more mortgage closing documents are signed electronically, it is referred to as e-closing. With refinancing and purchases on the rise, potential lenders are now increasingly shifting to eClosings. This is also a result of restricted staff, and banks & other financial institutions adopting sectorial automation practices. The need to automate is more than ever given the grim situation. At every step, lenders are embracing the new technologies that judiciously support digital closures.
- Tech Adoptions
The new technology adoption is not just restricted to the mortgage life cycle but is spreading its wing across the real estate sector too. Another noted technological endorsement is virtual open house tours chosen by many home sellers and buyers equally. The entire Real Estate ecosystem is now getting a step closer to technology.
- Home Safety and Maintenance Technology
When we come to home safety and maintenance this time, it is no longer just the security systems, home automation, or basic safety but technology has extended its arms bringing automation to a whole new level to fit the larger lifestyle practices that include basic hygiene, emergency preparedness, and aspects that surround the COVID-19 drivers.
The year 2021 is certainly bringing in more readiness, self-sufficiency, and willingness to adapt personal hygiene in every sector. Real Estate at large because of its proximity to real-life living experiences. On a broader spectrum, the housing sector is on the brim to bloom in the coming two-five years leaving the skeptics behind.