Authored by - Asha Mathew As India’s COVID-19 tally leaps towards the 3 million mark and with no unanimous agreement on when India will reach its peak tally, this crisis is becoming a long haul. Property Management firms all over are reeling under the ramifications. In Bangalore itself, the overall rental enquiries have dropped by 50% since February. Raksha Property Management too has seen an increase in the percentage of vacant property in this quarter. Here is a look into the different aspects that are triggering this decrease in demand for rental property.
Fear of Moving:
People aren’t proactively looking out for new living spaces for fear of moving during such difficult times. There have been instances of people wanting to move into a new place only to realize that the COVID threat was greater in the new area. Also, the fear of contracting the virus through all the people and things you have to come in touch with while moving a household. A decision that anyone would prefer to postpone unless really pressing at a time like this.
Work from Home Options:
The work from home options have led to deserted commercial spaces which were earlier rented out as office spaces. With major technical giants like Google and even smaller companies announcing long term work from home solutions for their employees, the demand for office spaces has also further reduced. It is also being argued that the work from home options being explored now are giving companies cheaper alternatives to renting office spaces and that this might become a permanent feature even with the virus gone thus further reducing the rental demand for commercial office spaces.
India’s Silicon Valley houses a great percentage of people from other states who are here for the professional opportunities. Most of these people stay in rented properties as they have their own property in their hometowns. With work from home options available now, and the metropolitan cities becoming the hotspots for the virus, a lot of people have opted to vacate the rented houses and go back to their hometowns till the corona scare lifts. Though this has shown a significant boost in property activity in the Tier 2 and Tier 3 cities, this has also led to a significant slump in demand for rental spaces in metropolitan cities like Bengaluru.
Restrictions in Apartment Complexes:
Quite a lot of apartment complexes have put restrictions on any new occupants till the virus threat reduces. Thus, if there is a vacant property in such a complex it might be difficult to find new people to move into them till the COVID scare eases out considerably.
The decrease in demand for rental property is a real phantom for now, especially in a metropolitan city like Bengaluru. For now, property management companies need to find innovative ways to rope in the few takers who are there in the market.