As the world grapples with the effects of COVID-19, a virus originated from Wuhan, China, it has crossed geographical boundaries and led the world to one of the worst crises faced by humans. With 18,912 casualties, it has significantly impacted the world with countries like Spain, Italy, USA, and now India is going into nationwide lockdown. The consequences of COVID-19 are also apparent in different parts of the world like South East Asia, Middle East, Far East, Iran. The situation may get worse if the crisis isn’t managed and controlled.
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Along with China’s trade shut, tourism & retail are some of the worst-hit sectors around the world. In the middle of such a crisis, the Indian economy – which is already going through an economic slowdown and liquidity crunch – is highly unlikely to remain unharmed. With fewer people going for site visits coupled with purchasing power going downhill and low transaction volumes, the fall of real estate and housing markets is also evident.
As of now, it’s hard to gauge the long-term effect of COVID on real estate and housing markets in India. But with time it might be possible to measure what the slowdown & dwindling demand caused by delays in buying decisions might unfold.
Even before, real estate & housing have shown resistance and successfully came up from many shockwaves like GST implementation, demonetization, RERA, NBFC crisis, etc. The current crisis induced by COVID-19 is not bereft of opportunities for the sector. Many buyers and investors might start investing in this sector as real estate offers a tangible asset in contrast to stock markets.
A lot of factories around the globe are shutting down because of Coronavirus which is apparent with the collapse of import and export. China’s economic growth has been estimated up to 2.9% from 4.8%. This might be a cue for Indian export and import to fill the void in the global market. This will open doors for economic growth in the country and positively usher real estate demand.
