Will real estate property prices fall in India - COVID 19 Impact
The coronavirus scare is infecting the people globally and has adversely affected every walk of life; businesses have gone back to the drawing boards to chalk out sustainable plans. As per financial experts, the economy rate will come down as most of the people have lost or reduced their income to overcome the present global illness. COVID-19 has been an unfortunate situation that has affected all, where salaries are getting impacted, jobs are being lost, and supposedly safe endowments are showing a downward trend, etc. Like for every manufacturing industry and sector, real estate is facing the same difficulties. Further, check out this article on – Will real estate property prices fall in India - COVID 19 Impact to know more.
Impact of Coronavirus on Indian real estate
It is relevant to mention that a global shutdown has come to a standstill as the sales and marketing efforts have been paused and there is no interaction between the buyer and the seller. Both the clients are thinking twice before trying to exchange the money. Even if one buyer decides not to buy the property or the investor decides not to invest the money on property thinking what would happen next in the market, this will affect the economy and drop down in the real estate. Commercial real estate According to recent research, India is at risk of facing a substantial immediate trade loss. The commercial real estate market will be impacted more as it is a slow mover. Moreover, if the Coronavirus keeps clashing the economic supply chains for longer terms than expected, it is a possibility that commercial investment decisions may stray from real estate. Construction
Travel restrictions have led to a delay in projects being built. Almost all construction activities have also been reduced due to precautionary measures. The nationwide lockdown has completely stopped the construction activity, project delays and could run into several months till the pandemic comes to normal and will lead to a decline in demand-supply. Moreover, as there is no new listing being created on new projects due to the lockdown, there is less advertising on the properties being exposed to the market.
Residential real estate
The residential real estate sector which was already tackling to overcome the past turbulence of policy reforms and the liquidity crisis is likely to see increased cash flow gaps and liquidity pressure in the coming time. As new sales and residential demands could take a further hit on account of the economic fallout from the COVID-19 pandemic. Thus, it would be a fair assessment to state that the housing sectors would witness a substantial reduction in new launches and a substantial drop in demand as people are trying to save their cash at their end due to salary cuts and might have to face the situation if it worsens…
Predictions
As per the recent survey, there is a huge impact on Indian real estate due to Coronavirus. The housing sale has been reduced by 25 to 35% and office spaces to dip by 13 to 30%. Likewise, new launches may witness a 25 to 30% decline. When it comes to non-residential segments, corporate occupiers are delaying their leasing decisions as several MNCs and businesses are testing work from home option, if proved successful, this could impact leasing activity in the future. Fortunately, it is the best time for investors who want to invest in real estate during the lockdown. As it will be a passive income for them with low investments and high returns.
Conclusion
In conclusion, no one knows how long the Coronavirus impact may last. But its impact has led to a serious fall in the global economy and has already impacted the market and businesses in the country...
