Each day we are faced with news and articles detailing the impact of COVID-19 on different industries. No industry has remained unscathed due to the pandemic. While some industries, like travel and hospitality, have seen a decrease in sales, others like online education have seen a spike in sales.
These contrasting numbers though cannot be applied to the Real Estate industry. Read on to know why.
WHAT IS THE FUTURE OF REAL ESTATE SALES?
Has been the question on the minds of realtors, agents, channel partners, developers, and brokers. Industry experts have called the pandemic the third ‘black swan’ to hit the Real Estate market. Even before the lockdown, the industry was experiencing a slow growth curve.
With the lockdown, completed projects remained vacant and ongoing projects came to a standstill. Customers ceased to venture outside of their homes let alone turn up for a site visit. Overall, the Real Estate Industry in India experienced an 80% decline in property sales with 72% realtors claiming a negative impact on business.
THE BALANCING ACT
While the data may seem dismal, most businesses began to adapt. Realtors, agents, and real estate groups turned to ‘Lockdown offers’. This included reducing prices by 10-20% for finished projects and 30% for land acquisition. Marketing efforts were increased and even virtual site visits were scheduled.
The impossibility of achieving property sales virtually was suddenly a profitable reality.
This was timed perfectly to match the shift in the psyche of home buyers. People were spending more time indoors. Wider spaces, dedicated workspaces, and the demand for better housing and facilities began to rise. Contrary to projections, consumers were open to exploring available properties and willing to invest.
This explains why real estate companies are optimistic about achieving partial recovery of losses by the end of 2020.
CAN ALL REALTORS BE OPTIMISTIC?
Are you wondering if your Real Estate company or agency can recover losses? During these times of rapid change, you may have felt no control over your business. It’s not just you. Many businesses are still in the dark on how to adapt and cater to the new normal.
The transition has been hard but not because of lack of control but due to lack of insights. While you can read multiple reports and stats to understand and cope with the present scenario, what you need is to understand how your business reacts to these changes.
You need to shift focus from external trends towards internal trends that point to a solution.
WHAT IS TRENDING?
Let’s look at a simple example of the insights we can derive from implicit trends. We analyzed the incoming call trends of a premiere Real Estate developer with properties in Bangalore, Mumbai, and Pune. This 2-decade old company has implemented Paramantra to streamline their sales and marketing operations.
Trends Prior To Lockdown
Between the periods of Jan and March, the average incoming inquiries were between 450-500 calls. These inquiries fell to half between April to July – the period of the lockdown and subsequent unlocking. The average calls during this duration ranged between 200-250.
Trends During and Post Lockdown
Contrary to beliefs, the inquiries did not cease entirely but continued to flow in.
During these times, inquiries are usually posed by home buyers who are looking to book a property. It is unlikely that a general user would want to inquire about a large-scale investment. Especially not during a phase when most households are restricting expenses to essentials.
It is only buyers who have the resources, time, and the need to buy a property who are most likely to inquire.
So while the volume might be lower, with the right engagement, incentives, and service, the conversions can be higher.
Access to these call trends has given the customer insights on the actual demand instead of relying on generic reports. Even if these incoming calls are missed, the company will be able to identify and reconnect with customers with our suite of communication tools.
It’s integral to understand that even amidst these fast-paced changes, there are 2 facets of Real Estate sales that remain unchanged
- Your competitors are vying for your customer’s attention, now more than ever before.
- Customer engagement is key to converting a home seeker to a home buyer.
LEARN. EVOLVE. SUCCEED.
These insights may not be 100% applicable to your business. After all your business is unique and so are its fluctuations. Nonetheless having access to reports and trends that help understand consumer behavior and demand is essential.
Another aspect to be considered is how your representatives, most of whom might be working from home are responding to inquiries. When you keep a clear track of calls answered and missed you can allocate resources to make sure no inquiries are lost.
With our offline mobile app, your teams can update information even without access to the internet – a feature that comes in handy when teams working remotely or from home are plagued with poor internet connectivity.
THE FUTURE OF YOUR REAL ESTATE BUSINESS
The pandemic has caused all businesses to introspect. Even when things go back to normal you will want to prepare for another unprecedented eventuality. A cloud-based CRM will be at the center stage of these precautions.
The ability to monitor, learn, and adapt to sales trends and marketing performance will help your business stay ahead of the competition and to hold it’s own even during times of external changes.