Real estate sector evolving to reap benefits post-COVID

In the middle of a pandemic manifested by job losses, salary deductions and worry for wellbeing, the
real estate segment was indisposed. Auxiliary to this was a workforce scarcity resulting into a mass
exodus of itinerant labourers from metropolitan cities back to their homelands. Nevertheless the
preceding quarter, individuals in the area said, has fetched foremost respite. Assets transactions,
mainly in the big metropolises, have apparently escalated, primarily buoyed by the accommodation
sector.

Achuth Gowda, MRICS, Founder and MD of Fidelitus Corp, said the previous quarter was ‘very good’,
bearing in mind April to June was a ‘catastrope’. “Things have picked up. Thoughtful consumers are
in the arcade. There is transformed and new interest in equipped to move in possessions,” he said.

As per property consultants of Fidelitus Corp, the commercial real estate sector made a “significant
comeback” in the third quarter of 2020 - June to September.

“The silicon city, Bengaluru, recorded commercial transactions of around tens of thousands of units
in Q3 2020 as contrary to half a lakh units in the pre-COVID-19 quarter of Q1 2020. Auctions were
considerably greater than the former quarter, when the coronavirus pandemic had fetched trades
down to an only thousand units,” Achuth Gowda said.

“Bengaluru saw maximum sale of 5,400 units. Bengaluru documented new launches of around
15,530 units in Q3 2020 as opposed to 18,220 units in pre-COVID-19 quarter of Q1 2020, reaching
approximately 79% of the pre-COVID-19 quarter. Conversely, there is an enormous jump over the
earlier quarter of Q2 2020 that witnessed only 4,680 units being launched,” Achuth Gowda said.

A lot many explanations have contributed to the growth. “Previously, limited individuals gave
significance to commercial real estate. After the COVID-19 situation stabilised certain things have
been observed. People began looking for reason of belongingness and security, funds and
investment. Furthermore, it is the paramount period to purchase a property. The prices are rock
bottom and interest rates as low as probably in 2003,” he explained, adding that commercial real
estate transactions were also commencing to get improved,” asserted Achuth Gowda.

Property advisors and realtors assume the development to last, specifically for commercial real
estate sector, even envisaging a supply-demand disparity next year due to scarcer new launches.