Recently, we recalled the anniversary of historic lockdown announcement. We were flooded with videos and memes of banging utensils all over social media. Funny and humorous though, these very same images have come back to haunt us with pangs of pandemic.
Notwithstanding the positive outlook, the side-effects of the pandemic are being felt now, in all aspects of our lives, more commonly on the 'Home' front.
The pent-up demand of lockdown period is an old story now. The sops extended by the government are behind us. We are here to face the stark realities of post-pandemic scenario.
The businesses that supply basic necessities of life including 'HOUSING' have been undeniably affected directly or indirectly due to pandemic.
INCOME LEVEL:
Be it an enterprise or an individual, the income levels or revenues have gone down significantly or at best remained stagnant. After adjusting to inflation, the situation looks even more grim.
EXPENDITURE:
The reduced income levels have forced one and all to tighten the belt. A visit to a mall on a weekend will reveal more details than this blog. A visit to the sales room of builders during the recent festivals and weekends will only confirm the reality of realty.
EMPLOYMENT:
Despite improved financial performance, the recruitment statistics published by major IT companies shows the true picture of employment scenario in the country. 78% drop in hiring is indeed a jolt to job hunters in this sector. The situation is even worse when we add up the recruitment numbers of other industries. Employment being the most important driver of demand and consumption, the tumbling of sales figures is only natural and obvious in the present scenario.
ROI:
Be it home loan, consumer loan or personal loan, the EMI is up by atleast 30% as compared to 18 months ago. While the intention of taming the inflation seemed to be noble, the pace of acceleration of ROI is certainly debatable. The increased rate of interest coupled with decreased purchasing power and reduced eligibility for borrowing has caused a major slump in the footfalls in any sales room across various industries.
COVID-19 has once again raised its ugly head riding on soaring temperatures and heatwaves across the country.
It is very evident that the pandemic has forced a change in the consumer behaviour and consumption pattern. This has affected the sales velocity across the industries. Real Estate Industry is not an exception.
Debatable inventory levels, PR friendly dressed-up sales figures are certainly not adding up to the footfalls.
Economic scenario in the developed countries, alignment of forces in the ongoing Russia-Ukraine conflict, instability in other regions, forthcoming state and national elections in India, will only add to the already fluid and dynamic scenario.
Before the situation becomes irretrievable, SELL MORE, SELL FAST.
ALL IS 'not' WELL.
What you are saying here makes sense. As per the economic trends, shrinking incomes and rising inflation the middle class is going to be poorer as time passes. And as regards to the real estate sector, with the increase in supply in Mumbai as most old buildings going for redevelopment along with there will be a need for very good marketing strategy n marketing teams.
Perfect on the Dot analysis