The year 2020 has not been easy for anyone. Covid-19 pandemic has changed the world in myriad ways. The markets are touching an all-time low, the economy of the nations has become stagnant and millions of people lost their jobs across the industry. The real estate industry is not an exception. The Covid-19 pandemic has disrupted the real estate sector too, which was on a rising curve for the last few years.
Last year both the residential and commercial sectors recorded a low number of new launches, sales, purchases, or any kind of transactions. Lack of raw materials and labor is probably the main reason behind this slowdown.
Below we have mentioned some of the sectors under real estate and the Impact of covid 19 on them
Covid-19 Impact on the Housing Market
The pandemic affected both the demand and supply of real estate property in the market. But to revive the demands, the government has taken key measures. In the recent past, the center has announced higher tax breaks and lower interest rates in home loans to make purchases more lucrative, apart from setting up a Rs 25,000-crore stress fund for stuck projects.
Covid-19 Impact on Homebuyers
Along with the housing market, the covid-19 pandemic has also impacted the Homebuyers. The prospect/ property seekers are unable or unwilling to visit the location physically and that has resulted in postponing their purchase decision.
And lately, we have seen a large number of the workforce being laid off from their jobs that have also made property seekers unsure whether they should invest in property or not.
To encourage buyers, the government has lowered interest rates on home loans and RBI has announced several rate cuts, bringing the repo rate down to 4%.
In a survey conducted by Housing.com in collaboration with NARECCO, 53% of respondents said they have put their plans to buy a property on hold only for six months and plan to return to the market after that. Nearly 33% of respondents in the survey also said they would have to upgrade their homes, in order to work from home. In a renters’ survey, 47% of respondents said they would like to invest in property if it was rightly priced.
Covid-19 Impact on Builders/Construction Companies
Builders/ Construction companies are the ones who got impacted badly during the Covid-19 pandemic. On the one hand, lack of raw materials and labor delayed the completion of the projects and on the other hand, the buyers were not willing to invest their money. With 1000’s of unsold stock and further delays in the completion of ongoing projects, the overall cost for developing a project increased.
To boost the real estate market the government announced several measures in its Coronavirus-specific stimulus package and the EMI holiday for builders during the crucial period.
Covid-19 Impact on Warehousing
On the basis of some assumptions, after the pandemic, the E-commerce industry will see a significant rise. And based on this projection the warehousing sector would stand to gain immensely.
Most importantly this growth will not only be restricted to the big cities, but it will also spread all across the nation. And this could be very beneficial for the tier-2 and tier-3 cities.
Covid-19 Impact on Office Space
Covid-19 pandemic has impacted this sector very much. Due to the rise of the contamination risk, companies all over the world announced remote working for their employees. Although people are gradually joining back their work sector, a question still remains as to whether this remote work culture is going to replace the office spaces?
Conclusion
The year 2020 had a far-reaching impact on many sectors, especially due to the pandemic that brought the economies to a standstill. The real estate sector was not an exception either.
But as an experienced real-estate developer in Guwahati, Protech Group has held its grounds firmly and successfully launched two new residential projects- Protech Green and Protech Paradise in the year 2020.
Recently, we have also seen that the skilled people and professionals who migrated to other cities of India are shifting back to Assam, where they hope to build their career henceforth. This is also a positive sign which will spur the demand for residential properties in the future.
We- Protech Group have launched our new project Protech Prime at kahilipara. If you are looking to buy a 3BHK flat, in the heart of the city, visit www.protechgroup.in for further information.
