Saturday, January 16, 2021

Impact of Covid 19 on Real Estate Sector



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

 http://www.pnsrera.com/

 

 

Author

PNS RERA Consultants

http://www.pnsrera.com/

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Impact of Covid 19 on Real Estate Sector

Health & economic effect severely affected real estate badly affected consist of 7% of the GDP of the country it employees 15% of the la...