With the spread of Coronavirus (COVID-19) it was officially declared as a pandemic by World Health Organization (WHO) on March 11 on which after it created a huge impact on real estate industry. India being listed now in top 3 position of the Coronavirus (COVID-19) chart, it’s been a very hard time for everyone from low class family to middle class family. It is now fairly created massive unemployment, cuts in wages, businesses running down, loss of jobs and much more. Coronavirus (COVID-19) has thus also created a huge impact on real estate industry in India.
Now everyone is likely to be cautious with the investment they made in real estate sector or now further willing to make any investment in property market. Home sales can drop, home prices may fall but it can also be great opportunity in the market for investors to buy a property.
Some previous pandemics have dramatic changes in the housing sector with a full stop in the market. But now with time changing, this pandemic is making life and markets anything but normal. So here are some of the points where Coronavirus (COVID-19) will create an impact on real estate sector in India.
Impact on Real Estate Business
With the Coronavirus outbreak businesses in real estate market work is been growing slow. The projects will now be running in delay mode and could delay for one year. Thus, homebuyers have to wait for their ready to move in flats. According to reports nearly 4.50 lakh units across top seven cities in India were supposed to be completed by the end of 2020 has now been put on delay. Some real estate businesses have been halted due to the outbreak and lockdown.
Impact on Real Estate Residential Sales
The demand in the residential sector of real estate may see a huge decline in number of sales. The projects, housing agencies, consultants may suffer due to outbreak of Coronavirus. In 2019, 2.60 lakh units were sold in the markets which may now fall in the range between 1.70 lakh to 1.90 lakh units. The new launch of projects may also see a decline with 30% sales. Developers would be impacted with these thus now may opt for more offers or may low down prices to increase sales.
Impact on Real Estate Stocks
The March, April, May month have seen a huge crash in the markets of stocks due to COVID-19. The global market came down to one-third of the market by sweeping out billions of dollars from the market. These Coronavirus has hit almost every sector of assets and stocks in India. With the crash in Indian markets it swept out hundreds of crores from the market in a single day. The Bombay Stock Exchange (BSE) tanked 1,836 points while the National Stock Exchange (NSE) plunged 494 points in a single day on March 16, 2020. Traders have gone with huge loss in all trading types.
Impact on Real Estate Labours
With the spread of Coronavirus (COVID-19) all ongoing projects in the market have seen a shortage of labours working for it. The workers are not reporting and are trying to stay away from the project site due to the fear of virus. Most of the workers have returned to their villages and can come back after Diwali or in month of November. With the delay in projects, real estate government body may penalize developer with huge fees for not completing their work on time.
With the economy going down in this pandemic may create investment opportunity for high class families and Non-Resident Indians (NRIs). As the falling of property prices in different regions may lead to successful investment opportunity in that area. NRIs have great opportunity to invest in as the value of Indian Rupee is falling day by day. Gold and FDs are among the top priorities for short term investment but investing now in real estate may give a huge profit in coming days.
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