Situation of Real Estate Industry in India After COVID 19

Almost every sector has been affected by this COVID 19 pandemic apart from few like Insurance. At this point of time most of the real estate experts say that the COVID 19 effect will remain till 12 - 24 months what this means? It means that after the covid - 19 there must be a fear wave in the market which will lead to uncertain real estate downfall.

Let’s talk about the reason that market will slow after this COVID 19.

Situation of Real Estate Industry in India After COVID 19

1. Scarcity of Labour 

Labour are who directly impact the final product. As we have seen how labour struggled in the Metro cities for their livelihood during the lock down and finally they move on to their village. Low cost labour plays a very vital role for any industry and if they are not available so you can understand how big the issue is?

2. Project Delayed

As per the expert April to july is the pick time to complete a project and during the pick time the lockdown stopped everything due to this reason builders are not able to ready their project on time. Even the ongoing projects also freeze which is main cause of project delays.

3. Less Demand

The demand and supply decides the market growth and market movement. This pandemic compelled people to live with the bottom line of their livelihood due to this people are not willing to spend money for  betterment of their lives. They are only believed to fulfil their basic needs. This leads to saturation in the marketing in terms of real estate demand.

4. Pandemic Fear

During pandemic a certain fear leads to you towards necessary precaution and its good but over fear is not good. This also leads to saturation of investment mindset.

5. Raw Material

Low cost raw materials is one of the main reasons for low cost finished products but at this scenario raw materials would not be available as international trade has totally stopped. India is one of the biggest importers of steel from china and due to import shut down it's not easy to get available raw materials as per the requirements.

6. Less Foreign Investment

FDI or Foreign Direct Investment is one of the biggest factors to market movement in the positive direction. Investors also do not feel safe to invest their money.

Apart from this there are still some good opportunities and hope of a market move in the positive direction.

7. Leave with Corona virus

A small sentence said by our honorable PM Shri Narendra Modi that “we have to leave with corona virus”. This sentence carries a thousand dollar meaning. Its means we have to adopt this issue as a part of our life and we have to move on because we cannot stop everything. With full precaution of WHO we have to resume everything because corona virus is not something which will vanish within a month or two.

But apart from the above challenges there are a couple of opportunities which must boost in this sector let discuss it.

8. Lower rates-higher sales

A low rate or discounted property always attracts the buyer. As per the market reserve bank of India, reducing the repo rate to revive the Indian economy which benefits the real estate sector or helps to gain positive growth.

9. Digital push

As Corona virus is not a one or two months game so we have to adopt virtual culture in the real estate sector. Right now, total digital spending accounts for just 25% of developers’ marketing spend which is too less. Due to COVID 19 developers are facing customer site visit problems which can be easily solved by virtual technique.

10. Preference for ready to move

The demand of ready to move property will increase after this lock down. Projects which is ready to move are always favorable among the buyers. as per the one of the survey data more than 80% property,searchers showing interest in ready to move property. It shows that builders need to get more available ready to move property which can help to gain a boost in the sale of property. 

11. Opportunities for investors

During the lock down and After the lock down property builder and owners must rescue the price of the property to get more sales or to attract buyers and inverter generally wait for the opportunity like this. Investors are too wise to believe in calculative risk. Builders and developers are facing liquidity problems and investors know it very well. As the property price will reduce, investors will invest their money here and wait for market normalization so that they can generate a huge amount of profit out of it.

12. Interest of NRI

This pandemic also attracts the NRI towards real estate industry because of the low interest rate provided by the different banks and the low price of the properties.

Now above I have mentioned all the related points about challenges and opportunities of this COVID 19 pandemic for the real estate industry. Yes there are huge challenges which are never faced by the industry and nobody can estimate any accurate result but still there are opportunities to tackle it and we have to grab it with both hands. 

Even most of the builders and developers believe that after lock down the demand of property will rebound.

Well this COVID 19 pandemic has taught us a huge lesson that how we have to be ready to face these unexpected challenges.  At the time of 2020, most of the developers and builders hesitate to adopt and connect with digital technology but this pandemic compels them.