The unexpected and unfortunate outbreak COVID-19 that has affected the whole world badly. Almost every sector could be seen suffering, including the real estate. The GDP has fallen down and the situation is still uncertain. Before the pandemic, Indian real estate industry was just picking up itself from major liquidity crisis. The sale all across India including Gurgaon, Mumbai, Pune was gradually improving.
Let’s have a quick look at how the industry has been affected by the novel Coronavirus.
1. Shortage of material
Earlier, construction was imported mainly from China and real estate builders relied on them. Including electronics, iron and steel, products, construction equipments and more. All the imports stopped due to lockdown due to which the developers started facing problems and short of stock.
2. Decreased number of Buyers
Demand in residential property sale gradually dropped down during the lockdown as buyers couldn’t move out to make the visit. Before the lockdown, the number of site visits decreased as people preferred to stay at home. Adding more to the adversity, income was affected on large and as a result people started to save than spending it on new property.
3. Unsold Inventory increasing
Covid spread leading to lockdown, eventually devastated the real estate market where can unsold inventory is growing. Unsold inventory gets less appealing for the buyers as the usually prefer the new constructed properties.
What Lies Ahead?
This is just the beginning, there are lot many problems that are lying ahead in future for the real estate industry. However, the situation might show some real good impacts on the industry.
Rates of the property
The sudden and unfortunate decrease in demand has lead builders to lower the property rates and offer good discounts. Buyers are benefitted with this but developers and homeowners who want to resell their property are incurring losses.
Liquidity Crisis
Already realty industry was experiencing a liquidity crisis and with covid spreading on a large scale made the situation worse. Before the pandemic, for the recovery of the real estate sector, the government has announced a number of relief funds and tax benefits. But now it seems that the liquidity crisis would continue for a longer period and possibly worsen.
Read Also: Top 10 Best Residential Projects in Hyderabad
Property holds major importance in everyone’s life. Investment in real estate can never go wrong and can always be used wither for self or rent. If not today, in the near future you will definitely witness high growth in the sector leading to high property rates. Thus, this is the time to put in your hard-earned money in realty so as to reap out good returns in future.
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