This question is well so relevant in almost every sector and business. Covid 19 created a kind of crisis that had not been witnessed for decades, no one was prepared and certainly, there wasn’t any contingency plan for it. It came all of a sudden and disrupted the whole world. It was expected that the real estate sector would face a huge blow due to the ongoing pandemic situation which is still very much far from getting over. But today, standing here are due to deadly waves of coronavirus infection, what is the scenario today? Will the Indian real estate market crash down?
Let’s have a fact check of what coronavirus did to real estate so far.
It has been observed that in spite of the lockdown, the real estate market didn’t really see any price crash in 2020. The pricing of residential real estate almost stood up the crisis for all the major cities like Mumbai, Pune, Chennai, Kolkata, Bangalore and other tiers 1 cities. Though the pricing didn’t dip down to the unprofitable level, we have to admit that there were certain corrections in the prices that made the buying price go down slightly. However, it only increased the affordability for the buyers.
Again, it will be nice to notice that sales and demand in the real estate market showed a healthy recovery sign as soon as the lockdown was loosened. The more affordable pricing combined with the reduction in property loan interest rates by the government posed a good recovery path for the real estate market.
Also, it should be noted that the cost of raw materials, transportation of materials, labour issues, and many other factors makes it impossible for developers to further lower their price. Therefore it can be safely assumed that real estate pricing is unlikely to go further down from this point onwards. However, another question that many investors are concerned about is whether the real estate market price will go up in the future?
Some experts are seeing the possibility of a marginal rise in real estate prices in the near future, however, the market is more prone to hold the current stability for some more time now. Therefore, if an investor is looking forward to parking their money at a competitive price, this is perhaps the best time to invest in real estate.