Lessons aplenty taught by COVID-19 to real estate developers
The COVID-19 pandemic has impacted a number of industries across the world. It will be too early to determine the severity of the crisis at this stage with the situation changing rapidly each day. As far as India is concerned, the outbreak has been limited with the nation-wide lockdown. However, the curve has started to go up. So, nothing can be predicted at the moment. The real estate sector, like any other sector, has witnessed a massive drop in sales. The condition is not great as small businesses may be facing an elimination at the end of this pandemic.
This outbreak has taught a number of lessons to real estate developers across the country. First and foremost thing is the importance of reducing the risk by diversifying the investment in assets. Generally, the developers were more inclined towards investing in residential or commercial real estate. However, they have realized the importance of spreading the money. Additionally, the realty developers have also understood how a diversified supply chain can make a difference, instead of being entirely dependent on a single source. Also, the digitization is one of the aspects that cannot be neglected from now onwards.
New technologies, such as artificial intelligence and the internet-of-things are ruling the roost at this juncture. So, the real estate industry cannot lag behind. Data and analytics can help generate valuable insights for taking informed decisions. A breakdown in services can majorly impact a project by disrupting the stocks, if a sustainable, flexible and responsive chain of suppliers is not built in the first place. Going forward, the developers will need to ensure that the transition occurs smoothly. A developer must invest into acquiring new technologies to attract and retain the buyers. Things will not be the same post Covid-19 pandemic. However, there are plenty of lessons to be learnt for the real estate developers.