What are Post COVID Impact on Real Estate?

 

The Unprecedented Outbreak of Deadly Corona Virus has shaken the world thoroughly. The COVID impact is quite evident in all these sectors however it has lead major impacts on Real Estate in India. The second wave of Corona has spiked thirteen fold increase in cases with an active number of 3,79,308 cases.

In the Year 2020, everyone Learned New Normal of Work from Home however there are different changes that took place in real estate. Due to Lethal Resurgence of COVID-19 real estate may get off track Despite the New Normal as reported the Realty Experts. In India corona cases has surpassed United States and Brazil in terms of active cases with 12.8 million cases. The Corona Spike has affected Big Cities like Maharashtra, Delhi, Rajasthan, Gujarat and Orissa extremely. Strict Restrictions have been imposed in different side of nation with Night Curfews, Weekend Lockdown, and Part-Lockdown.

Observing the Current Condition, Home Buyers are likely to get affected due to COVID-19 and Demand for Real Estate property may fall as well. However, Different Practices are getting into force by Banking Institutions for instance Apex Bank on April 7, 2021 chose to sustain Policy rates with Status Quo. In addition, SBI has decided to Raise Home Loan Interest Rate by 0.25% which is a clear indication of Banks backing off from low interest rate scheme imposed in the previous Lockdown in 2020.

Major Impacts:

1- Increase in Affordability of Properties

A Major Impact is to be anticipated on the behavior of Home Buyers as Home loan Interest rates are low but with higher exemption. Residential Sector may witness the higher sales considering the Sales number during January to March 2021. Home buyers can attain Home Loans at 6.65% annual Interest as RBI is going with Continue with the same Repo Rate that is 4%. For the Home Buyers it turns out to be the happy news as contrast to January 2020 where a higher rate of 8% was witnessed. An affordable housing will be a favorable outcome to occur proffering an opportunity to acquire Properties with affordability.

2- Downfall of Commercial & Retail Real Estate in India

Pandemic effects can be seen as a serious concern for the Commercial & Retail Real Estate in India as work from home concept has dropped down the leasing deals of the Office spaces. an amount of 35 lakh sqft in Jan-Mar 2021 has been declined that was 70 lakh sq ft as correspondence period in the Year 2020. Therefore, leasing transactions are likely to witness considerable downfall in the Retail Real Estate.

The Demand of the Flexible Workspaces has surged and also turned out to be a hit. In accordance to experts Flexible workspaces shall increase by 38 mnft in next one Year. The lockdown extension has made big downfall in Commercial & Retail Real Estate if it continues it may lead to serious concern for the industry.

What’s Good amid Pandemic?

The Higher spike in the COVID cases and restrictions is an adversary for everyone. Nevertheless, if we see what’s good in such situations there are considerable points that may arise a ray of hope among the realtors.

Restored Normalcy Due to Vaccine

The Year of 2020 introduced new lessons to everyone where we got introduced to new normal but also faced complications due to the lethal virus however in 2021 AstraZeneca’s Coronavirus Vaccine has given a sigh of relief. Economy is expected to witness momentum in 2021 & higher optimism due to introduction of Vaccine. A significant improvement in the economy status will be evident that’ll surely lead to higher growth.

Considering the current reports, Residential Housings is again getting stronger in sales and impact of coronavirus anticipated to be minimal in contrast to 2020. This is a clear indication of the full-fledged recovery of the Real Estate & reformation of multiple Efficient Strategies.

Rise of Remote working & Digitalization

The rise of remote working and digitalization is on peak all thanks to Covid Impact. the unprecedented situation made people smarter & efficient to find new way of working. A prolonged lockdown experiment has helped people not only to break the corona chain but to also exercise daily jobs with the help of digitalization. Multiple Revenue Targets have been met in commerce with the active access through digital Portals. in addition, rise of digitalization has taken down all the limitations related to work as now it can be completed from the comfort of home as well. accordingly, increase in efficiency and productivity of the employees without any wastage of time is a win-win situation.

Hence, we can say that technology has come out as the saving grace and key to cope up with Businesses.

In conclusion, Post COVID Impact in 2020 had extremely impacted the Real Estate. Better Days are expected in 2021 as amid growing corona cases Increasing Demand for Residential Properties is a evidence of it for Real Estate sector. Here’s an opportunity as during this time, Realty Experts in different sectors can readdress strategies for coping up with Pandemic Damage. However, the widespread of Corona cases has enlightened the need of Modern approaches to Business with transformational methods.

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Real Estate Best Investment Option during COVID Times

The Outspread of the lethal Coronavirus has affected the economy adversely. The entire nation has gone through a roller coaster ride due to the COVID-19 crisis. In between the entire chaos, one sector that has witnessed positive impact is No one else but real estate.

Amid COVID situations, there are considerable factors of the Real Estate Industry that makes it an ideal choice for Investment. Investment is a decision that must be taken with precision so here we are drafting points that can help you understand why Real Estate Investment during COVID Times is the Perfect Choice for You.

A Stable Investment Option

Investment is a vital choice that helps you coin up the big returns from hard-earned money you invests. There are a few considerable Investment options such as Stock Market, FD, Gold but Real Estate turns out to be the finest among all of them. Due to the ongoing COVID Situations, every other investment has become highly volatile but real estate is the Only One to be safer one. Not everyone in the business is a risk taker so the stability of asset turns out to be prime benefit assuredly.

Affordable Option

Residential Property Investment is ideal thanks to the Lower Interest Rate on Home Loans. Observing the Surveys taken by Industry Experts and Realtors it can be concluded that 50% of COVID 19 Investors in the Metropolitan Cities are keen to bounce back in the industry in the upcoming 3 to 6 months. Ready to Move Property options are being offered to the Buyers adding to their convenience with Higher Bank Loan availability.

Additionally, the Reserve Bank of India (RBI) has done Rate Reduction on the Repo Rate with a reduction of 7% levels assisting Home Buyers. Budding Home Buyers should not let go off this Lucrative Offer on Asset Possession. A Lower Interest Rate means Lower Rate of EMIs and Higher Savings adding to Safety of Future.

Consistent Government Support

In the contrast to the previous Real Estate scenarios, Government is being generous by presenting active Fiscal Support. Demand for the Residential Properties is witnessed to be higher especially among the Local. In contrast to 2008 when Interest Rate was on peak, today’s Rate Regime is Lower making Real Estate Investment a Stronger Choice. The Positive Impact of the Current Scenario is majorly evident among Realtors based in Metropolitan Cities where even midst COVID-19 Pandemic Recovery Rate is Higher. 

Lucrative Deals

Downfall in all sectors is a sad reality and the forthcoming of Uncertain Times may defer demand for middle class but easy payment plans things are expected to be balanced. Types of Deals Realtors are provided with nowadays is unlikely to be given without any festive occasions. High Prestige Developers may not present direct Lower Rate on Property Possession but complementary deals like off on car parking or waiver of charges is expected to be offered. The present interest rate is undoubtedly taking Real Estate northwards as a whole sector.

Multiple Investment Options

Real estate provides Investors the benefit of choosing Investment option as per their convenience. With a wide variety of Real Estate Property options, Investors are Free to Invest and access the world of benefits. From buying Residential Properties to Investment in Hotels, Retail Malls, Offices, Warehouses, & Leveraged Assets are great options to go along with.

Drop of Interest Rate is the best deal for Real Estate Investors amid such trying times. As mentioned earlier realtors can get possession of properties at lucrative deals & complimentary offers on Both Residential & Commercial Properties. Equity Appreciation on Residential Property & Rental Income & Investment Returns on Commercial Investment is a true reward for the Investors.

Buyers’ Market

Looking back at Previous Times of Real Estate where the Global Economy went under unfavorable situations such as the Oil Crisis, Dotcom Crash or Global Financial Crisis in 2008, the current scenario of Real Estate in Pandemic is far better. Nowadays, Financial Institutions are in a better position and offering Lower Interest Rates to grant loans which is favorable to the Buyers.

Developers have managed to outspread themselves across multiple sectors such as vacation Homes, Senior Residences, etc followed by Multiple Relevant Projects. When we take a look at such an outspread industry, the Real estate market is extremely favorable towards Property Buyers.  

In conclusion, we can say that Real Estate is certainly the best decision to choose amid the COVID-19 Pandemic as an Investment Option. Reviewing the wide variety of options to Invest, Lucrative Deals, Lower Rates offered by Financial Investors, all add to the supremacy of the Real Estate Industry. Nevertheless, some may not find Real estate convenient due to Lower Capital Appreciation during trying times. It is important to understand Rental Income has not always turned out to be a steady Option for Investment. Henceforth, Investment Options must be thought over and should be done with precision on the finest location with Industry Experts.

 

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