In 1983, when India went to England to play in the Cricket World Cup, Kapil Dev & Co had the tag of 'Minnows'. What followed is not only part of folklore but also a great lesson for anyone who faced adversity in life. The 'David vs Goliath' final match of the 1983 World Cup between India and West Indies gives us goosebumps even today. 'Minnows' winning the World Cup by beating the 'Giants' is akin to a Corona infected patient walking out of a COVID hospital, alive.
Real Estate being a cyclical business, downturn and adversity is not new to the developer fraternity. One of the most complex businesses, Real Estate is full of intricacies, complexities and uncertainties. I always relate the Real Estate industry to the 'Chakravyuh' of Mahabharata. While Abhimanyu knew how to break into the 'Chakravyuh', he did not know how to come out of it and he paid the price with his life.
Unprecedented and unimaginable economic policy decisions caught many Abhimanyus' (read builders) in the Chakravyuh of Real Estate. Even as the Abhimanyus' of Real Estate were combating these unfriendly economic enemies, here comes the enemy of the World Economy, the pandemic of COVID-19.
When the entire country was shut down on 21st March 2020, a grinding halt was more pronounced and visible in the Real Estate industry. Mass exodus of construction industry workers (almost 80% of India's unskilled workers employed in this industry), restrictions of movement of people and a complete shutdown of banking system, put the whole industry in COVID hospital. But, this time, the Abhimanyus' of Real Estate were already battle hardened with unmatched survival instincts, courtesy Demonetisation, GST, RERA, etc, etc.
An industry known for its conventional method of doing business, this time around, builders were quick to adopt modern methods to keep their sales registers busy.
It is pertinent to note that poor attempts were made to boost the market sentiments fancy imaginary sale figures published. However, as the lockdown progressed and the customers reconciled with the fact that Corona is here to stay for longer than the proverbial '21 days', the real figures of sale started gathering steam.
The curse of Corona brought with it a fair share of blessings in disguise too. On one hand, the 'fence sitter' buyer realised the need of owning a home more than ever. On the other hand, a 'stiff-nosed' developer loosened the fist to accommodate a very demanding customer. In came the matchmaker, the Bank, to stitch a deal between a developer and the Home Buyer. What followed is nothing short of a miracle. The bookings started flowing in so much so that, many a developers clocked sale figures better than pre-Corona days.
Revised prices, reduced rate of interest, EMI holidays, big hearted freebies and, to some extent, the scare of not owning a home in situations like Corona, proved to be the major factors that tilted the scale in favour of the industry.
Today, even as I give finishing touches to this blog, the Real Estate Industry is functioning near normal. The most heartening aspect that needs to be applauded is the customers' enthusiasm. There is a definite surge in demand from those who have been staying on rent so far. Thanks to the pandemic, COVID-19. The customers seemed to have realised that it is better to be quarantined in own home than a rented one.
With the gradual restoration of long distance trains, the construction workers have been returning to the sites. The supply of raw materials has improved as the road transport is open for movement of goods. Work-From-Home (WFH) is the new buzzword in the employment sector. Most offices are functioning virtually. The outdated patriarchy term, 'Housewife', is already a thing of past. Now we have 'House Husband' who works from the house.
Many developers have resorted to site visits by appointment, to avoid unnecessary crowding. This has also resulted in avoiding casual site visits or window shopping. Developers have installed advanced sanitizing equipments to assure the customer of his safety and well-being. Pick up and drop facility has certainly helped the customer to build his confidence. It has also helped the developer to ensure that only genuine customers walk into the sales room.
While the mankind is yet to win the battle with COVID-19, the Real Estate industry seemed to have already gained an upper hand over the pandemic. Call it 'David vs Goliath' or 'West Indies vs India' in 1983 WC Final, for now, Real Estate industry seemed to have won the battle.
Strength lies not in physique, but in resolve.
Real Estate has resolved to WIN.
Thank you Sir. Your appreciation means a lot to me. Will continue to strive hard to remain relevant and contribute to the society and industry in particular.
Your blogs are always refreshing to read and your perspective on the industry and it's workings are really insightful. The way you connect the real estate industry to something a majority of the population can relate to, like the mahabharata is fascinating. Looking forward to reading more of these x