Dynamics Of Real Estate In 2022 And The Impact Of Public Relations
India’s real estate market is looking upwards again in spite of the post-pandemic blues and a general sense of precariousness when it comes to investing. The PR industry has been the one tool, which the developers have effectively used to prosper during these times. There are evident signs to suggest that real estate has begun to do well, when any kind of revival in any other market sector is unexpected. The Indian real estate was one of the fastest to bounce back from the aftermath of Covid 19 pandemic when compared to elsewhere in the world. PR activities like virtual events, health camps with free vaccination, social media surveys and radio broadcasts did a lot of good for developers in endorsing their brand image. An interesting factor is the growth in construction segment which has reached to 7.5% in the current quarter of FY22 as compared to contraction of 7.2% in the same period last year. This is a tell-tale sign of sizeable recovery for the real estate sector. A recent report suggested that Indian real estate sector is expected to reach USD1trillion by 2030 and will contribute almost 13% to the GDP of India. A lot of it could be contributed to the appropriate PR exercises, undertaken by the industry in general.
FACTORS FOR HIGH DEMAND IN RESIDENTIAL SECTOR
The incentives announced by the government and low interest rates levied by the banks on home loans have been like a shot in the arm for the industry. The home loan interest rates are the lowest at the moment and some banks are lending money at an interest as low as 6.65%. Also, different state governments at one time or the other lowered the stamp duty to promote real estate in their respective states. PR firms have taken up the task of relay of this vital information from the government and developers to the people at large. Smart Real Estate companies use these PR firms like a mouthpiece to reach out to it’s perspective customers. These factors have fuelled the dream of owning a home among Indian families. Due to Pandemic, the work from home culture has changed the pattern for most home buyers. They are focussing more on sustainable community-driven lifestyle, where there is a sense of belongingness through social interaction. Homes located in societies with better health and security facilities are taking precedence. The developers understand this and are now focussing on townships with large open spaces having green surroundings and recreational amenities, something which the new home buyers look for to improve their standard of living. This has boosted the real estate in smaller towns where developed land is available at affordable prices that can accommodate such large townships. The developers, through PR companies have changed project launches into events, where home buyers are sensitised about the different aspects of the projects. The results are a proof of the effectiveness of PR.
REVIVAL OF COMMERCIAL/RETAIL SECTOR
The commercial sector of real estate is also not left untouched. The demand for office spaces and high-street retail has seen a steady increase. This is rather surprising because during the pandemic many companies and large business houses had resorted to a work from culture for their employees. As a result of this, these companies benefitted in terms of lower overhead expenses and reduction in their rental expenditure. The sentiment at the time was that this system of working would become the norm, resulting in lower demands of the commercial spaces in the future. However, the first quarter of FY22 has seen a steep demand for high-end office spaces. Some state governments, with the idea to promote IT sector, MSME’s and industrial production are offering land at base rates and/or increased FSI (Floor Space Index) at very reasonable premiums. The retail sector is also riding high, as we see the markets buzzing with people again at the fag end of this pandemic. In terms of commercial Real Estate, PR firms are a very useful asset when it comes to sourcing big retail brands to occupy their Retail space. Also such brands are always looking for prime locations to set up their business. A good PR firm provides the connect between the two.
ROLE OF PR IN THE REAL ESTATE DURING THESE TROUBLED TIMES
There is cutthroat competition when it comes to the real estate sector. This is why, more and more real estate companies are now hiring PR agency to strategize their marketing. This is basically to facilitate outreach by the developers to their prospective customer base. A good PR campaign improves real estate goodwill in the market and helps in brand building. The PR firms specialise in using both traditional and digital media for the client’s brand promotion. Newspapers, magazines, social media and public events both real and virtual are some of the largest and most widespread platforms to grab public attention, and a good PR agency uses these tools effectively for business promotion through their contacts and networking. The idea behind this is, to build a long-lasting and trustworthy connection between the builder/developer and the prospective buyer. This has never been more relevant than now because in today’s world people depend largely on online reviews, social media posts and blogs by influencers for making the right decision.
One can conclude, that Real Estate continues to be a safe choice for investors as well as actual users. It won’t be wrong to say that the year 2022 will be a good year for the industry and a good PR strategy will help the stakeholders of the industry to stand out and succeed in this highly competitive market.