COVID-19 has affected the economy and many sectors across the world. India is not far from the reality of getting economically stressed. As the world is fighting against the deadly virus, many industries and sectors are also struggling to be stable. Among them is the real estate industry. The recovery of the losses in these industries cannot be expected to happen immediately. For any economy to recover, it will take time. Here is what you can expect when you plan to buy a property in India post-COVID 19.
Visiting the Sites will Dip
The virus has created a scare among people and today almost everyone is scared to visit places. This feeling will not wear off so easily. People will search for properties online and avoid going for site visits. Once they have shortlisted some properties, they will visit only those sites before making the final deal. This will save a lot of time and money when it comes to shortlisting of properties.
Property Prices May Rise
Everyone expects the prices to rise as soon as the COVID-19 scare is over. This is because the markets would want to cover their losses. The prices of all products, essentials, and non-essentials, are expected to rise. This also could apply to the real estate sector. Builders and property dealers may increase the property prices as the cost of the supplies may increase.
The Interest Rates May Fall
The RBI may reduce interest rates to attract customers to take home loans. This is to cover up for the low demand for home loans due to the virus. This will help the home buyer in getting properties at affordable prices. However, this may be a short-term method to attract customers.
Halt in the Project Launches
Due to the COVID-19 restrictions, many projects have got stuck or have got delayed. Post the scare, builders and developers will now finish the projects that have been left half-way through. This will affect the new projects that were in the pipeline. These projects will now take a back stand and will not be a builder’s or developer’s priority.
Delay in Delivery of Houses
The COVID-19 has put a halt in every business. Hence, a lot of houses either remain unfinished or the paperwork is incomplete. Once the country is back to normalcy, the chances of getting your house handed over to you may get delayed. This is especially for those houses that have yet to be completed.
Lack of Labour will Stall Construction
Due to the virus, many labours and construction workers have returned to their hometowns. Since the construction sector depends on these daily-wage earners, the sector will take time to recover. Getting labourers to resume the construction work will take time. This will delay the work.
Increase in Defaults or Insolvency
Due to the halt in all the businesses across the country, many builders and developers have got affected. This has led to severe financial stress on the builders and developers, irrespective of how big they are. Many big companies are on the verge of insolvency. Many smaller construction companies have also ended up defaulting on their loans.
High Demand of Online Brokers
For people to get back to their normal lives will not be easy and quick. People will now have limited movement outside their home for some time. This will increase the demand for online brokers who can help them find a perfect home. They may also finalise the deals online instead of requiring to meet the broker for the signing of the papers or other necessary details. Hence, the brokers too will show their prominence online.
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