India Real estate sector hurted because of Covid 19

Reportedly the rapidly spreading novel coronavirus has immobilised industries, markets and economies worldwide. Globally, no business or sector has been able to insulate itself from the outbreak’s effects or withstand the onslaught that has caused havoc on macro-economic and social factors. In india, too, the tremors of the impact have intensified. Although the central and state governments have taken steps to ensure containment and prevention, the near future looks unpredictable, with the count rising every day.

With most companies and organizations proceeding to implement policies of no face to face meetings’ and no visitors’, the real estate market has been affected. Sales and marketing efforts have been paused and deal dates have been pushed to the future.Travel and visa restrictions have further lead to delay in projects being built through foreign collaboration. Construction activities have also reduced due to announced precautionary measures.

The global economic slowdown, which has already impacted scores of markets and businesses in the country, is now resulting in further fall in property prices. Generally viewed as a need’ or investment’, the demand for residential is going to get squeezed with people trying to conserve cash at their end. An added factor has been the possible salary cuts employees might have to face if the situation deteriorates. As on date, hiring has been stopped in the sector. Given these conditions at the employees’ end, their capacity to send money on houses will be significantly impacted, which is where residential will see a further challenge. Investors and buyers will also be unwilling to purchase real estate due to the prevailing gloomy market sentiments. capital flows and liquidity will potentially look at going down in light of the current circumstances.

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