Impact Of Corona Virus On Real Estate In India
Coronavirus heavily affected socio-economic conditions at all levels globally. The scenario in all the fields changed drastically. Some fields saw a major rise whereas some saw a deep pitfall. Real estate in India has always seen glittering years but the situations seem to have taken unpredictable turns during the pandemic days. The real estate businesses that were the one among the chief contributors to our national economy suddenly had to withdraw their shine because of the dark clouds of collapsing economies and trade.
Coronavirus had such a suffocating effect on the Indian real estate market that it brought property transactions to a standstill last year when the country was put under lockdown between March and June 2020. Since then, the market has made numerous steps toward recovery, and just when it appeared that a comeback was on the horizon, the country was hit by yet another wave of the virus.
The lockdown had a very negative impact on the traditional way of work in the trade and business world.
Furthermore, due to supply chain difficulties and a labor shortage following the coronavirus lockdown, project delivery is significantly hampered. Construction work for different residential segments is on hold and will stay so for the foreseeable future due to restricted supplies. Also, because existing projects remain incomplete, builders are unlikely to get new ones. .Experts predicted that the market will fully recover in 2021, since inquiries, site visits, and sales had begun to approach pre-COVID levels in most locations. Rent-generating real estate assets are directly dependent on Real Estate Investment Trusts.
The future of REITs will be coterminous with the effective management of the second wave of Coronavirus, which is clouding the chances of a slow recovery of the office market. The reappearance of Coronavirus in a more deadly form by March 2021, on the other hand, has generated worries considerably greater than last year. With partial lockdowns in place in places such as Mumbai, Pune, and Delhi NCR, with people trying to find shelter, and struggling for health care facilities. The future seems frail.
Mentioning the positives to begin their new initiatives and enterprises, the majority of developers and brokers choose to use digital technology. The pandemic, on the other hand, cleared the way for the digital world, and its use in real estate assisted in transforming buildings in the way that buyers desired.
As per leading reports, India’s residential real estate market is on the path to a decisive return of serious homebuyer inquiries. However, luxury homebuyers used this situation to invest in premium properties as exciting discounts, and partial payment facilities granted by the builders during pandemic conditions.
Also, sales improved dramatically from October onwards, thanks to a reduction in house loan interest rates to around 7%. The builders offered appealing schemes and prices which acted as a ray of hope in building up the grounded market.
“The real estate industry is volatile in the aftermath of the second wave of Coronavirus, but it will weather the storm and continue to provide.” Consider the year 2020, when the entire country was put on lockdown. However, demand for homes increased in the real estate industry, and by Q2 and Q3 of 2020, it had reached pre-COVID levels.
Conclusion:
Millennials will drive demand in the future, but we exaggerate.
Millennials will drive demand in the future, but we expect NRIs to return home and invest as well. Despite the epidemic, these are positive developments that have created strong momentum in the real estate market. The outlook for FY21-22 is encouraging, as seen by positive growth in Q1, but it will require the second wave of the pandemic to recede in order to be sustained. Overall, we can anticipate a good year ahead.