Coronavirus- Boon or Bane for Indian Real Estate
The sudden spread of this global pandemic has had a severe impact on the running of most countries. Two months of complete lockdown has had a severe impact on economies and most markets and businesses were forced to come to a halt. COVID-19 has infected more than 7.55 million people worldwide and has claimed over 4.23 lakh lives across the globe. With the World Health Organisation (WHO) declaring it a global health emergency and pandemic on March 11, 2020, the sentiments of businesses worldwide have been severely impacted and are mostly negative in their outlooks. The crisis has not spared the Indian real estate sector either. Most real estate construction projects have been halted at the moment due to scarce labour and difficulty in procuring raw materials such as steel and other articles. Despite the uncertainty in the market, no timeline on when international trade and other businesses will be started up again, and the uncertainties of construction costs and returning labourers, there are very high hopes in the real estate sector that the property prices will experience corrections owing to a flawed buyer sentiment and panic selling in the resale market.
How Will Coronavirus Impact Indian Real Estate
NRI investment has always been a crucial part of the economy and the real estate sector. It has always held a special status for developers who aim to develop special projects to generate investment from non-resident Indians. Major sources of investments have been targeted to NRIs living in the Gulf and the US and it is greatly expected that they will play a significant role in reviving the real estate market after this crisis has passed. The latest trend is the interest in affordable and mid-segment housing. The inclination is mainly due to government incentives and the spike in demand for houses that offer assured rental income. The gap in the market is bound to have an impact on the already falling rupee which is expected to play a major role in attracting the attention of potential NRI investors for residential property along with the emotional connection to their homeland. Metro cities are also witnessing a demand for commercial offices due to growing industrialisation and IT parks which is another fantastic opportunity for NRIs to invest in. The ‘Make in India’ initiative is expected to give a boost to inland manufacturing will be another boon for commercial real estate since the businesses will likely want to expand their offices and equip them with the latest technologies due to the current lack of manpower. New, innovative, and faster entry models, facilitated by an improved ranking in the ease of doing business indices has resulted in accelerated market entry for foreign players intending to set up shop in India.
The Grhasara team has always prided itself on keeping up with the changing trends in the property buying market and is pleased to offer any advice you may need pertaining to the changing scenarios as we slowly emerge from this global crisis and try to return to a normal world. May it be investment advice or legal consult; our experienced team of advisors is always on hand to provide customized solutions for all your real estate needs. Contact us to discuss, compare, and choose from the best array of investment opportunities.