How COVID-19 crisis changed the real estate market of India?
The impact of COVID-19 on the real estate market could be felt in halted constructions, reverse migration of labourers, reduced demand for houses, and much more. Developers had difficulty maintaining liquidity while the homebuyers lost the urge to purchase properties since the job market got hit badly.
However, the situation post lockdown is not the same anymore. Six months into the global crisis, the real estate market is all set to regain the conscious and welcome homebuyers with demands for ready-to-move-in properties and more.
To maintain cash flow and liquidity, realtors are refraining from investing in any new projects. Instead, their focus is on completing their ongoing projects and releasing most of their unsold inventory. For this, realtors either will keep the pricing slab stable or offer discounted rates to release the severe liquidity stress.
Apart from incentivizing the homebuyers, developers are now depending upon RBI’s recent step to help finance the construction of their ongoing projects. This step provides a cushion to the real estate sector. It will help developers restructure their existing loans with a two-year moratorium without classifying their sites as Non-Performing Assets (NPAs).
Government’s response to COVID-19
Prior to COVID, the Indian real estate market was gradually picking up pieces while dealing with numerous issues for the past few years. However, the COVID-19 crisis had put pressure on the sector, as a result of which, the Central Government had to take certain strategic measures to revive it. The government of India has been a huge help to the real estate sector post the lockdown.
Influence of technology on the sector Technology is a fantastic addition to real estate and is changing the way the sector has performed until now. Even before COVID-19, from establishing the primary contact to giving all the information about the property, the sale cycle was performed online. However, the pandemic gave new hope for the builders to move even when the purchasing cycle has been limited to no contact. This is done with the help of progressive innovations like Virtual Reality (VR). The current circumstance has made more real estate agents understand the significance of these innovations towards displaying a property to a customer, to connect with them, and close a deal.
Source: Times of India (http://bit.ly/3hVBIVx)