What to Expect from Mumbai real estate after the lockdown

Learn to expect the unexpected”- This is the new mantra trending in 2020.

The sudden manifestation of a virus, Covid-19 has left not only the nation but the entire world grappling with numerous issues. Although the primary concern is health and wellbeing, other sectors such as real estate to have been showing alarming trends.

In fact, Mumbai, the commercial capital of India has been one of the worst affected, not just in terms of dealing with the health crisis, but also in terms of dealing with the economic crisis and the shifting trends in the real estate sector. 

Changes in lifestyle, income and working models of people and organizations will truly have an impact on the real estate industry, and here we share some insights into what to expect from the Mumbai real estate industry after the lockdown. 

With most workplaces shut since the onset of the pandemic, people have been working from home, in most cases. Despite this, many organizations have had to bear the brunt of losses, due to this unprecedented situation. The silver lining is that this model has made many big organizations see the opportunity to cut costs, and with most companies making plans to adopt this working model even post COV ID-19. 

While this will definitely save the organization an unimaginable sum, it will shake the foundation of the real estate industry, as owners of large commercial premises will find it a huge challenge to find tenants or buyers. The ensuring cash crush may cause a correction in the lease as well as sale transactions when it comes to real estate. 

The ramification of the pandemic has changed peoples’ outlook in a big way. Speaking in terms of the

luxury and entertainment industry, the stringent social distancing norms, coupled with an already mounting setback due to the losses by missing out on the vacation season revenue, have made numerous retail spaces such as restaurants and shopping malls take a back step.

The usual the hustle-bustle of moviegoers, shopaholics, and party poppers no longer have the means to spend, and this in turn has made the situation even worst. While people are now looking for safer and cheaper modes of entertainment, spiraling rentals have only added to the woes of shop owners, and have compelled most people to wind up their business, owing to limited footfall and declining revenue.

 In a bid to salvage the situation, the very basic thing that most people will do is to save on rent and maintenance. And the simplest means to do so is to look for premises which are small in size. This increased demand will be a blessing for most people who will be able to continue functioning without having to take the extreme step of shutting down their business.

 However, size is not the only deciding factor, as there are numerous other aspects to be considered.

While many organizations will be forced to shut their business, there may be a deficit in the rental income, and this too has caused a lot of panic amongst property owners.

But the spiraling demand in smaller sized premises is something which one definitely needs to encash on in the post-COVID-19 days, and for this the first step is to find a good and efficient real estate agent to guide you through and get the best deal. 

In addition, most under-construction projects have been facing delays due to work coming to a sudden standstill during the lockdown. Coupled with this, the cash crunch caused due to increased timeframe of under completion projects, and the mass migration of daily wages workers have also created a deficit of manpower, further pushing the deadlines ahead by almost a year. 

This delay will witness a paradigm shift in the preference of people. While owners of luxury homes will face a huge challenge in selling their property owing to a price correction, this will be the ideal time for property owners with a premise value of less than 1 crore, as the demand for affordable houses in Mumbai is going to witness an exponential rise.

 People would now prefer to invest in ready to move affordable houses in Mumbai rather then wait for under-construction projects to complete.

 Pressing on this situation, investors will seek the help of good realtors to show them some of the best residential properties within their budget.

Good property dealers are aware of every shift in the property market and will be able to offer some of the best resale flats, ready to move in apartments and commercial office spaces, depending on the need of the buyers.  

Understanding the shift in demand and price corrections, real estate agents too will try to offer more and more from their kitty, and the real estate market in Mumbai will truly witness a demand for office space for rent, in prime locations, close to BKC and other areas in the heart of the city. Besides this, while luxury apartment owners will have to bear the brunt of price correction, the demand for affordable residential and commercial premises, will more than makeup for this deficit. 

Despite this volatility, there is one thing that will never change in the post-COVID-19 world, and that is the role of the real estate sector, both as an ideal and safe investment avenue, as well as a very strong revenue-generating instrument. But finding the right property dealers are detrimental lest you end up getting the short end of the stick. 

We, at Urban investments & property solutions, are willing to help you in procuring your dream premises or selling your properties at the best price. All you need to do is reach out to us, and we will guide you in the best possible manner, explaining the changing trends and how to make the most out of it.