What effect will the coronavirus have on the real estate market?
Question
Leave an answer
Goodwilldev
Register Now
If You're New to this Website - Create an Account for 100% Free !!
Answers ( 2 )
Bookings of residential Apartments in Navi Mumbai & Mumbai Metropolitan Region (MMR) within the last two months of February and March have declined 78% from January due to the impact of Covid-19, said land developers and experts operating within the country’s costliest property market.
Property prices may come down by 10-20% across geographies, while land prices could see a good higher reduction of 30%,”, adding there hasn’t been such a correction since the worldwide financial crisis. Since then, prices in most markets have held steady despite lending and shadow banking crises. within the last year, things had taken a turn for worse due to a liquidity crunch at shadow banks – which are big lenders to both developers and property buyers – forcing companies to supply discounts. Now buyers can expect far steeper cuts. “It may be a complete buyers’ market .
So if somebody really wants to try and do the deal like buying a 2 BHK in Navi Mumbai, they need to scale back prices,” said. things now are so severe that there’s four to 5 years’ worth of land inventory across India – an all-time high. The country’s nine major residential markets have unsold units worth some 6 trillion rupees ($80 billion), consistent with a report in January. Banks also are worried that if developers can’t liquidate their stocks, it could lead to defaults and increase a $140 billion pile of bad loans. within a previous couple of quarters, albeit the govt has come up with steps to resolve the strain within the land market, several projects are still stuck, lacking funds or buyers.
The year 2021 was slated to be a year of recovery, and therefore the confidence was seconded by the vaccination drive unrolled by the Union Government. However, the recent upsurge in various pockets of India (especially Maharashtra) has compelled the investor community to stay during a cautious mode.
I guess it is definitely going to affect.. but can’t really say whether it will be positive or Negative…
According to my knowledge people who have recently visited property sites are getting calls from builders as they want to sell their property asap to avoid financial crisis. As this pandemic situation is affecting everyone . Specially the people from labor class or whose livings are dependent on daily wages..
People will definitely avoid any kind of financial investments and transactions due to salary cutting and other issues. But according to me this is the best time to invest in real estate.
You can get more info about current trends and situation in real estate industry here Goel Ganga Developments Blog