2021 Real Estate Trends: 4 Post-COVID Changes to Look Out For

May 25, 2021 admin Uncategorized

Many things have changed since a global pandemic erupted unexpectedly across the globe in 2019. A majority of office work has gone remote, lifestyles have changed and the way people shop and interact has evolved. The COVID-19 outbreak forced many industries to shift gear and alter their plans. The real estate market too felt the shift, with office spaces clearing up and urban residential spaces taking a hit following an exodus of workers from cities.

Construction came to a screeching halt and property transactions were almost nil during the first phase of the viral outbreak in India between March and June 2020. According to research from 99acres, an Indian real estate database, property sales dipped 80% in eight major markets in the country from April to May 2020 compared to the previous year. However, with a vaccine in tow and a reduction in the intensity of the virus's impact on everyday life, we can expect the major strains of 2020 on the real estate market to recede in the coming year.

Here are four 2021 real estate trends that look promising:

1. Commercial real estate will remain resilient and dictate sector recovery in 2021

While commercial spaces cleared out in 2020 owing to the pandemic and related health concerns, 2021 will see many offices reopening. Although work-from-home and other flexible workplace strategies will continue to dominate work culture, better economic conditions and consequent business demand will see more workers return to the traditional office space. According to a Knight Frank report on the post-pandemic recovery in real estate, India's office space is expected to remain stable in the coming year. Rent for commercial properties in Mumbai and Delhi-NCR are expected to hold steady while Bengaluru may even witness a rise.

2. Integrated living and mixed-development properties will see increased demand

Integrated townships have been a boon to residents during the lockdown. While many struggled to cope with restrictions on physical movement, closed communities enabled easy access to a number of amenities like restaurants, grocery stores and plenty of open spaces for walks without having to worry about health consequences. Mixed development properties provided an added advantage - for people with offices within walking distance, the advantage to skip commute also lowered the possibility of contracting the deadly coronavirus. These advantages will play into the demand for integrated communities and mixed real estate in the coming year. Prateek Mittal, Executive Director at Sushma Group, said in an Economic Times interview that the upcoming year would witness greater development of such projects to meet changing lifestyles of real estate buyers.

3. Technology will be a key component of the real estate experience

Technological solutions were at the heart of most problem-solving endeavours across industries in the past year. Even for the real estate market, technology such as unmanned aerial drones or AR/VR tours helped navigate the restrictions on social interactions during property tours. Going into 2021, technology disruptions are likely to persist. From the use of AI and machine learning for better construction to an insistence on high-tech features in the final property, the use of tech will dominate real estate activities. Some experts also suggest an emergence of blockchain technology in the industry.

4. Sustainability will find greater emphasis

The real estate sector is a significant contributor to the world's carbon footprint - a third of the global greenhouse gas emissions and 40% of energy consumption can be attributed to building and construction activity. Given that the pandemic and lockdown experience brought the downsides of energy-intensive buildings to the fore, demand for green and sustainable buildings will go up in 2021. According to Knight Frank's Asia-Pacific Real Estate Report, the current trends of zero-energy real estate and increasing green loans indicate that "green agenda" will be a "pertinent part of the 2021 (real estate) story."

Kohinoor Square - Mumbai's First Mixed-Use Development Property

For those looking to capitalize on the 2021 real estate trends, Kohinoor Square provides the perfect opportunity. As Mumbai's first mixed-use development property, Kohinoor Square offers both residential and commercial spaces on its sprawling 5-acre land at the most strategic location in the city - Dadar. Additionally, the property will house a heady mix of top retail arenas, dining spaces and ample parking area.

With a Gold LEED rating, separate energy centers for different utilities, façade glazing that optimizes temperature and lighting, and over 20% energy efficiency compared to other buildings, Kohinoor Square is designed with sustainability at its core. At the same time, the buildings are tech-savvy and breathe opulence from every nook. Whether it is luxury, sustainability or the thrill of community living that you seek, or an ideal location for your business, Kohinoor Square provides the answer to all of these needs.

Reach out to us to learn more about Kohinoor Square.