Impact of COVID-19 on the Real Estate Sector in India” By- Rahul

Hey guys!

How are you all doing?

As we all know, The Coronavirus outbreak, which originated in China, has infected lakhs of people worldwide. The virus COVID-19 are felt around the world, a real estate companies are been effected in different ways, largely dependent on region. COVID-19 outbreak and its impact on economy have pushed sentiment in real estate. Both residential and commercial real estate sector are expected to be hit in term of lunches, sales and prices, showed a knight frank India survey. Around 42% of the companies believe that the next six months will be one of the worst phases in terms of new supply additions across the major office markets in the country. More than half of supplier expect that leasing activity will remain well below par during this period. Their outlook on future rental appreciation also dipped in during the quarter as 50% of the stakeholders expecting rents to either remain stagnant or slide under the current uncertain economic scenario. The government of India under order passed a nationwide lockdown, in the partial or complete imposed of Section 144 in various states has had the cascading effect on migrant laborers. The sector was further besieged with the problems of financial stableness leading to salaries/daily wages not being paid on time as well as goods not being transported across borders, which has recently all but brought about the entire real-estate sector to a milling stage. The residential sector which already had concerns of weak demand will find it difficult to launch new projects and complete the ongoing ones due to construction halts and labour shortage. COVID-19 will have an impact on real estate prices if we are talking about the short-term period. The prices will go down as the demand will decrease in the next months - or until the COVID-19 crisis will end. The reason for this is simple: fear. Fear is the strongest feeling that a human being can experience and it makes us take decisions that prioritize our fundamental needs like our safety and health during this COVID-19 crisis. This means that primarily focused on other things than the real estate market. The real estate market prices going low is creating opportunities for speculative investors to buy a property or invest in real estate at really big discounts. This will be really helpful in the long-term as we know that properties gain value over time of period and are a great type of investment for everybody.


CONCLUSION


As a result of unrepeatable situation created by COVID-19, there is a so much greater emphasis on the health and wellness of the employees/construction workers as well as workplace hygiene than ever. Post COVID-19, it is expected that newer remote working policies, flexible space options and work from home. However, it is yet to be seen, the Government responds to the same. It is hoped that with drastic change in place the recovery under the real estate sector is possible nearby. Then later and the investment is little bit to increase at an upward rate.


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