Health & economic effect severely affected real estate badly affected consist of 7% of the GDP of the country it employees 15% of the labor force of India, It’s a labor-intensive industry it affects 269 other industries along with it
Property
prices decline further covid pandemic
Rental
decline, imply a good time to rent
Property
rates are down, can’t wait to sell Property rates are down can’t wait to sell
Journey of real estate in India
It was
much lower than the financial crises back in 2008, After 2008 the financial
crises we saw higher affordability easier investment help the real estate
market actually better that’s why after the crash in 2008 until 2015 we see a
surge of real estate investors in the market.
2015 most
developers are unable to deliver on expectations & we see a downfall going
there in 2016
2016
monetization dense real estate like never before it hurts the sentiment and
again we see a dips over there 2016 march RERA happened than a new law is
floated that streaming the dealing in the sector & bring transparency
Then in
2017-18, GST implemented results in a new launches & again we see a little
bit ou dip over there
2020 we
all know covid 19 records the lowest sale in the property residential property
since 2008
Another
trend has come up in the real estate story during the covid crises of
conversation in the sector revolving, is the sector digital? Is that
manageable? Is that even practical
What’s the
future of the market when we’re in the midst of the world’s largest remote
working experiment due to the covid-19 pandemic.
Digitization
has taken over & experts believe will continue to be the foundation for the
real estate sector. Digital booking for the real estate sector is already on
the rise. Virtual site visits, interactions with developers online will also
see a huge uptick on webinars & digital registration methods as well as
payment methods are now likely to continue to be there in the future as well.
For
example, an existing app like DocuSign & dot loop is already allowing real
estate professionals to sign & send contract papers & documents on
their phones so the digital applications are expected to continuously grow in
popularity as investors search for ways to conduct deals on the go.
Virtual
reality will influence the real estate world into the coming years while
investors may be familiar with the idea of 3d walkthroughs and 360 pictures
Experts also feel the need for space & the requirement of real estate
comfort is going to be redefined for life.
Short term
real market has come down in terms of absorption by about 40odd% it came down
to absolutely zero in April & May when the lockdown happened but after
that, it steadily started to grow.
Digital
application going through quite well also there are token advances that are
taken right now and harmony will reflect into real estate is still a question
right now.
In short,
the impact has been roughly about
40% as far as price correction is
concerned roughly 10% of price correction have happened across the board.
Get to know more
about Real Estate and RERA Act here
Author
PNS RERA Consultants
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