Real Estate is a one time affair for most of the people in India, the facts that drive the Real Estate market in India are more of a permanent in nature(The basic need for a permanent residence, idea of an investment to pass on to their heirs, need for space to set up a commercial activity which in turn connects to all most all industries in the world) and the situation We are facing globally today is temporary, though we are not sure of the total time period of this epidemic, the after effects on the market may come up and stay for a longer period of time. Some builders are also of an opinion that the residential real estate market is bound to come to it’s previous shape though there will be an immediate market correction of up to 10%. Home Buyers are depending on Home Loans in most of the cases, customers who booked the property, depending on the Home Loan for a major portion of the budget may also step back in this situation. Various facts like the total number of jobs that are to be lost or how many businesses are going to be effected directly or indirectly due to this epidemic play a major role. One of a builder from Hyderabad also states that the decreased prices may attract more buyers mainly in a low budget or medium budget housing projects if the after effects of this epidemic subside in a shorter period as the sale happens more out of a necessity and a need for a permanent or a long term investment on a residential property, which clearly states that the residential market may settle down in shorter term than the commercial real estate market in India. However, all the facts that drive the market are interconnected and vary from time to time,We are facing a global situation and the markets effected are world wide, The total time period of this phase and the After Effect period are still unknown once the facts are clean and clear, the market is bound to rise. So experts suggest the real estate investors to wait now, to see and learn about the exact time period for recovery of all the effected industries in the world as there could be a decrease in the prices due to the after effects caused by all the effected industries.However, Real Estate is an only Big investment that is done even when the markets are low as the price correction pulls more new buyers. The exact impact of the epidemic can only be said after 3 months of it’s completion, as the total number of jobs lost and the total number of companies being shut down can only be calculated after three months.
“The post Covid-19 scenario will be challenging as there would be an insecure job market and hence many will postpone their plans. We will see job cuts or salary reduction in many sectors. In addition, the banks will be very cautious while giving loans,” said Pankaj Kapoor, CEO, Liases Foras, a leading real estate research firm.
The real estate sector has been under pressure from the last few years. While in the last few months, things were improving a little bit, the Covid-19 has now devastated the whole sector.
“Realty prices will definitely come down as lots of developers will be desperate to sell their product ,” said Niranjan Hiranandani, president, National Real Estate Development Council (Naredco).
However, he said that the homebuyers will not be eager to buy despite lower prices. “Homebuyer may have a job as well as the money to buy but they will not take the plunge till they get confidence. The government needs to give stimulus to all the sectors so that homebuyers get confidence,” said Hiranandani.
