Impact of COVID-19 on the Indian Real Estate Market

Category : Real Estate Marketing Author : Team Amura Date : 19 Jun 2020

India, like most countries, has been brought to a standstill due to the ongoing pandemic crisis. Countrywide lockdown has resulted in economic repercussions across sectors and the Indian real estate market is no exception. The question is what would be the impact of the lockdown on the industry and what would the post-lockdown scenario look like?

To understand the corona impact on real estate, let’s first look at what are the problems for the various stakeholders involved.


Fear of job loss
The current scenario is likely to result in pay cuts and job losses as builders will look to reduce fixed costs at a time when their sales revenue has almost come to a grinding halt.
Fear of value erosion of property:
Property prices may come down by 10-20% across geographies, while land prices could see an even higher reduction of 30%.
Fear of the virus
Even when the current lockdown ends, the threat of COVID-19 is expected to linger and consumers would be reluctant to venture out in the market again.


No physical site bookings:
Thousands of walk-ins & site-visits cancelled as people are confined to their homes
Construction slow down:
Slowed or no construction due to the lockdown
Technology adoption:
Adapting the right technologies to enable more efficient operation and communication
Slowed bookings:
Impact on the sales cycle due to current fear & uncertainty in the market
Launches at halt:
New launches have been halted considering the market slowdown
Cash flow problems:
Impact on project cash flows due to limited execution capabilities & the recessionary dynamics caused by the outbreak

Market Impacts

With both consumers and developers facing these challenges, it has, in turn, affected the market adversely. Here are the COVID-19 real estate market impact in India:

  • Price correction in the ultra-luxury & luxury segments
    Bound to witness a reduction in prices across the country, anything from 10 to 20 percent depending on the location, city and the demand supply situation.
  • Price correction in the affordable segment
    Moderate price correction along with volume correction because of significant demand erosion as the savings of people have been eroded during the lockdown
  • Shift in channel spends:
    Major focus on digital channels with offline channels cut off for the time being.
  • Consumer sentiments:
    Not as positive as before due to the possibility of construction delays, decline in new launches and also due to rising uncertainty of overall economic growth
  • Shift from micro to international markets:
    NRI investments may improve amid rupee fall so international markets to gain some advantage
  • Investor challenges:
    Restrictions and uncertainty around valuation is limiting investors’ ability to perform due diligence, and it is more challenging to execute transactions

Probable Solutions

Here are some of the proposed steps that can be taken to tackle the ongoing challenges and boosting demand.


  • Revival of demand:
    Reducing property prices, bringing down the cost of financing or mortgage rates and introducing a better tax structure for both direct and indirect taxes
  • Price guarantee option:
    If prices are to come down in a few months or the buyer is to lose his job, the developer as per this scheme, will buy back the house from the buyer and also offer a 6 percent interest on the amount
  • Corona insurance:
    Schemes like corona insurance for the families would go a long way in addressing fear of jobs and contracting the disease
  • Deferred payment plans:
    Deferred payment without subvention - 10:90 plan means that the buyer may have to pay an upfront amount of 10 percent and 90 percent at the time of possession. Such payment plans may also be offered for ready-to-move-in projects.


There may not be enough headroom for these segment to rationalize prices as prices have remained stable for almost five years now

  • Compact units:
    Developers can decide to offer well-designed compact units to fit the buyers’ pocket
  • Freebies:
    Developers can also offer freebies such as GST and stamp duty waivers, additional gadgets in the house such as dishwashers thrown in, etc.


  • Omni-channel strategy:
    Most real estate businesses are currently highly dependent on physical visits, face-to-face discussions and transactions. It is thus imperative to increase online presence as the digital mode of business including product display, discussions, comparison and transactions is relatively less affected by such pandemic and other crisis-like situations that deter consumers from physically visiting business centers.
  • Adopting MarTech Solutions:
    Technology has helped elevate marketing across industries to a whole new level with the creation of MarTech. Marketing technology solutions have disrupted the marketing topography with the availability of new mediums, channels, and media types for marketers and have revolutionized marketing campaigns, marketing analysis and customer experience. With marketing being restricted to online now, real estate marketing technology like Sell.Do (complete sales & marketing automation) or IRIS (integrated online booking platform) can deliver improved conversion rates and amplified marketing ROI.


  • Digital advertisements:
    Highly focused messaging can be propagated through smartly targeted campaigns, content marketing, social media, etc.
  • Virtual tours:
    To drive consideration & engagement - a series of videos or still images along with other multimedia features such as sound effects, music, narration, and text
  • Online booking:
    Making the whole buying process seamless & digital to ensure smooth conversions
  • Online meetings:
    To interact & engage with potential homebuyers, who may transact as soon as the market returns to normalcy via webinars, etc.
  • Online broker meets:
    Virtual workshops can be conducted to engaged brokers & assist them in their Digital Transformation along with building their capability
  • Online launches:
    Launching projects online through smart targeted marketing & EOI campaigns
  • Email Automation:
    An efficient real estate lead generation using an email automation software with a multimedia approach
  • Chatbots:
    The most visible implementation of AI can be seen through the incorporation of chatbots.

Being Thoughtful As A Brand

Lastly, it is important to let your customers know that you are not trying only to sell your product but are thoughtful and understanding of the current crisis as well. It’s important to be honest, transparent and be reassuring to the stakeholders that your brand is here to stay, and will stand by them during this unfortunate & unprecedented pandemic. This also means maintaining connection with customers through relevant communication via social media platforms & other digital mediums while adapting new mediums of communications & being digitally sound.

Looking for a comprehensive digital marketing strategy to COVID 19? Being in the business from the past 10 years we have witnessed a few economic slumps and have helped numerous real estate brands come out of it as the market revived. We can help you devise the right strategy to circumvent the current slump and also thrive post-COVID. Get in touch with our growth marketing experts today, to set a plan for your real estate business.

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Comments (51)

  Suresh posted 4 months ago

Hi very good information is given Thank you.

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  Rakesh Patle posted 4 months ago

Very nice article on covid impact

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  Linta Mary posted 4 months ago

A well-written article that clearly explains the effect of the COVID-19 pandemic on the Indian real estate market. Many builders and investors are facing a tough time due to the pandemic.

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  Brad posted 10 months ago

Marketing during covid is a difficult activity like making people pay for a product that is not a part of their daily life can sometimes be a very big issue hence the solution is to include technology into the businesses. I believe that as a business, you must invest in chatbot technology so that you don’t have to see your customers departing to your competition.

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  Tejas posted about 1 year ago

Very informative blog. Physical site visits have been a major concern during the lockdown. Can you please tell me what are the alternatives available on digital marketing platforms and how effective are they?

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  Anilesh posted about 1 year ago

The blog is very insightful. Thanks for sharing. In the current market, the buyers are getting very skeptical about the project completion and to avoid the uncertainty and risk of delays they are looking for ready or near possession projects. Any suggestions on how to tackle this problem ?

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  Caleb posted about 1 year ago

The bottom line is that in order to survive, developers have no choice but to adopt technology. It is their only lifeline as things currently stand.

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  Sylvia posted about 1 year ago

The omni-channel strategy caught my attention. That's one I'd love to see more developers adopt.

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  Pink posted about 1 year ago

The real estate market has been resilient despite the challenges brought about by this pandemic. I truly commend the industry for that.

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  Storm posted about 1 year ago

In my opinion virtual tours are among the best solutions for the current crisis. Moreover, it makes it possible for even more consumers to tour the property as compared to an actual in-person tour.

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  Anny posted about 1 year ago

Inasmuch as the idea of chatbots is good, it may not necessarily work for everyone. Some people just prefer a human interaction.

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  Anderson posted about 1 year ago

I don't quite like the idea of automated emails. Some people view this as spam and may affect the consumer negatively.

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  Sean posted about 1 year ago

I hope the lessons learnt from this pandemic will be used to better the real estate market going forward. Sometimes it takes a crisis to learn.

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  Shantel posted about 1 year ago

I'm of the idea that this pandemic will make us all stronger. The real estate market is learning some valuable lessons from this.

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  Laura posted about 1 year ago

online solutions is the way to go. With everyone in lock down it's much easier to do things through an online platform.

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  Louis posted about 1 year ago

I think this is the best time to purchase a property. The prices are at an all time low!!

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  Terry posted about 1 year ago

I quite like the solutions you propose. They are practical and viable and should definitely be tried out.

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  Teddy posted about 1 year ago

Some developers have started organizing virtual tours of their property. I think if more of them could adopt the same things might improve.

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  Desma posted about 1 year ago

Worth noting is that basically all the industries have been affected negatively by this pandemic. I'm hoping everything will get back to normal once a vaccine is found.

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  Daphne posted about 1 year ago

Your write up is very well researched. Thanks to this I now understand how far reaching the impact of this virus has been.

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  Olga posted about 1 year ago

I have to point out that this problem is not unique to India. Practically every country is experiencing a major hit to its Real Estate Sector.

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  Oliver posted about 1 year ago

The rate at which people are losing their jobs is frightening. It will definitely have a long lasting impact on the property market.

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  Penny posted about 1 year ago

Value erosion of property remains my biggest fear as a consumer. It's sad to see your property lose value and there's not much you can do about it.

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  Patricia posted about 1 year ago

Lack of physical site bookings is really hurting the developers. I hope the government comes up with some type of stimulus package to help easen the burden.

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  Marley posted about 1 year ago

The real estate market will take a while to recover. People just won't have the purchasing power anymore.

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  Meg W posted about 1 year ago

The economic impact of this pandemic is nothing to scoff at. I've never quite seen anything like it!

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  Rickard posted about 1 year ago

It all started like a simple flu that would end naturally. However now the entire world has been brought to a standstill. Such a sad state of affairs indeed.

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  Roy posted about 1 year ago

This pandemic has changed the world in ways we never even thought possible. Let's hope it all ends sooner rather than later.

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  Obasa Funmilola posted about 1 year ago

This is a nice piece from a reputable blog for all. Your post is a good guide for we all most especially during this though time brought by Covid-19. Thanks for sharing this.

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  Gillian posted about 1 year ago

This pandemic has made most, if not all businesses to be practised online. As we can see in this article, pandemic has given Indian real estate markets to change their way of doing things.

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  Alex posted about 1 year ago

This is no surprise in reality this virus put the world on its knees. the question now is when and how are we gonna bounce back? One thing is sure a vaccine is a must. If not then we are gonna be here for a while.

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  Greg Dyer posted about 1 year ago

It is pivotal to make your customers aware that you are not selling your product. One has to be understanding in these crises.

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  AJ posted about 1 year ago

Trying to make any kind of business work during the pandemic is a nightmare. This is very much evident on the real estate market, where people will most definitely want to focus and spend what little money they might have at the moment on food and not to look for new houses or apartments and the like. There might be not a lot of Indian real estate companies who could afford to do the strategies listed in here. However, it gives hope that even in this kind of crisis, there are still ways to ensure that the business could still thrive.

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  Anyi Lizeth posted about 1 year ago

Definitely, when there is a crisis, real estate is very affected especially the people who work in this, and I have seen people close to me lose their jobs.

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  Mery Castle posted about 1 year ago

It is depressing to think about what India is going through regarding the property market. It is a bad occasion for those who work on it, but a good opportunity for people who want to buy real estate.

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  Prince posted about 1 year ago

Covid 19 has really open our eyes to alternatibes to doing business. It has really affected every spheres of life, the consumer cycle has really collapsed.

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  Oyeyipo Oladele posted about 1 year ago

This is a good one for us all. The advice is so good and strong for us. The pandemic is another threat though.

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  Nitesh Bhati posted about 1 year ago

Nicely written blog. Thank you for sharing the solutions to tackle the challenges and boost the demand in real estate during this current scenario. I'm looking for a detailed digital marketing strategy to COVID 19, could you please help me?

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  Wilson Jake posted about 1 year ago

Moderate price correction along with volume correction is the best solution I see here. Reduce the volume with I moderate price reduction. Lovely piece, thanks for sharing

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  Danielle M posted about 1 year ago

Thanks for sharing your post, these advice is very helpful sespecially in the the current hard times that we are living.

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  Aman posted about 1 year ago

Thanks for sharing. How can NRI investments be leveraged in such a situation? Is there a trend that you have observed which is specific to NRIs?

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  mary posted about 1 year ago

The pandemic is an unfortunate incident that has brought a kind slow movement in all economy. The indian market isn't an exception

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  conrad pranze posted about 1 year ago

Real estate has been one of the most affected markets today. But most brokers are doing its best to sell/advertise real estate properties through the internet.

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  Kanthan Achari posted about 1 year ago

Great idea to move from physical to digital channel. But it would be a great help if you could give more some insights on how the customer behaviour has changed due to the COVID-19.

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  Meldred Judith posted about 1 year ago

We are all affected by this pandemic and we must slowly cope up. Dealing with the new normal in every aspect is needed.

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  Yesus posted about 1 year ago

I like this assertion that brands and businesses should still keep up with their customers in this pandemic.

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  vikram parmar posted about 1 year ago

The market is very volatile nowadays in Corona times. This is a highly informative article and is indeed a solution to the issues we face.

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  Shweta Biraj posted about 1 year ago

Quite informative article! The coronavirus epidemic has brought life to standstill all over the world. What is the future of commercial space in India?

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  Priyanka Patil posted about 1 year ago

Informative Blog. Nicely explained the problems & solutions that various stakeholder face. I would like to know how should I set a plan for my real estate business in this pandemic?

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  Kinjal posted about 1 year ago

Well, I am looking to invest in paid media for my upcoming residential project, probably will launch on eve of Diwali so how you guys will help me?

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  Ankita Chinnawar posted about 1 year ago

Good read! During the times of COVID-19, the market has been unpredictable. This breaks the consumer cycle and the brands are unable to reach their customers. This blog is an exact solution to the problem we are facing that is 'Physical To Digital'. Could you help me out with a complete approach and strategy?

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