The real estate industry is being thrashed by the corona virus, and it’s getting worse day by day. Due to this scenario of COVID-19 almost all the sectors are having a huge impact from which real estate is one of the major sector which impact the industries.
Since all trades and industries have been affected worldwide, therefore disturbances in business cycles are bound to impact the demand for commercial as well as residential spaces in the real estate market of India.
The effect on real estate will vary from sector to sector and it will last until the lock down gets over and also it will depend on how long the economy will take to get back on track.
Also, share market and economy gets disturbed which will have a terrible impact on all housing segments in the real estate industry. These are the three factors that affected the sector i.e labour,demand supply disruptions and prices.
As the epidemic increases, it will surely impact the Indian real estate market and particularly for those who had been preparing to buy or sell a home this season. Looking at the current situation, many developers are doubtful and have restrictions around the launch of new projects. So they are mainly focusing on the existing projects rather than new projects. The outbreak of COVID-19 caused an impact to the developers to launch their new projects especially during the festive season this year. So they faced the loss of rise in housing demand.
The aftermath of COVID-19 situation realize people that owning a flat is better than living in rented accommodation. Because of this, people realized the importance of having a real estate. It is a positive time for buyers as they are at a remarkable advantage to handle good deals and should take advantage of the situation. The benefits one can get while buying a home in this situation:
1. Governments took quick action across the world with both financial incentive and monetary measures. This helped the people to pay low-interest rates of 7.15 to 7.8 per cent on home loans.
2. Reserve Bank of India’s monetary policy took decision to lower repo rates by 0.75 points this made home loans significantly attractive.
3. Reduction of EMI and interest rates helped the buyers to save the funds which can help them for undertaking interiors related works for the flat which they have bought.
4. Another benefit of the current home loan interest rate scenario is that a borrower can look at the probability of going for a fixed rate over a floating.
5. The technology led home buying in India, making it possible to inspect properties online as well as negotiate and finalize deals. Now the purchase and selection can be done digitally.