Covid 19 Pandemic– After the four lockdowns and approx. 2+ months, we Indian comes on day to day or daily routine track. We all are started our jobs, businesses or other works. After these lockdowns still situation pandemic situation is out of control but how much government can control or pause. If we want to save our life than we must follow all precautions points, till corona virus is alive.
In this pandemic situation, approx. every country used the lockdown policies but this lockdown policy harm the global economy and individual economy as well.
Every sector like Share Market, Real Estate, Manufacturing, Mechanical, IT, Transpiration, Hospitality, Aviation, Tourism etc are effected by covid 19 or corona virus.
Lets discuss, Top 10 Challenges, will face by Real Estate Sector after Unlock 1.0 in India.
– Global Crisis
– Global Recession
– Low Liquidity or Cashflow
– Economy Down
– Property Rate
– High Inflation Rate
– Low Purchase Power
– Project Delivery will Extend-
After 100 years of Spanish Flu now world is struggling with Corona Virus (covid 19). Already global markets were down and all over economy were trying to recover but this corona pandemic created Global Crisis. Now everywhere, exports imports, international flights, international market, everything is crashed, or we can say it is in worst phase.
As we all know that due to covid 19, global recession in already entered and now all markets are getting crashed or down. People are losing their jobs, cashflow is continuously going down and inflation rate would be high in last 100 yrs. And due to such reasons real estate market in getting down and buyers are losing their interest.
All we know that Covid 19 (Corona Virus) is not good for health but it is not good for employees as well. Due to corona virus, in India approx. 12.2 crore Indians lost their jobs and those who are on jobs they are getting salary but after pandemic cuts like 20-70%. In world, Covid-19 to wipe out equivalent of 195 million jobs, says UN agency. So, this is the biggest job lost in last 100 years.
High Inflation Rate
Due to covid 19 or corona virus, majorly all companies are stopped or working in some limits. And because of this demand is increasing and supply is less. As we all know, in Lockdown periods, we all were at home. All works were stopped, only digital works were happening. So, in lockdown we all were looking for necessity items like food items, groceries, vegetables, fruits, medicines etc. But in that period too, only limited supply or less were there and demand was still same. And now in current time, demand is increasing and supply in less, so inflation rate is automatically increasing.
Low Liquidity or Cashflow
Due to covid 19 or pandemic, all normal transactions are now not happening only necessary transactions are happening like for food buying, rent pay, EMI’s and due to pandemic most people lost their jobs. So, liquidity or cash flow is also decreased.
Due to pandemic, most of buyers are postponed their property buy plans, most of them have cancelled. Those who booked recently, they are also cancelling the booking. Like earlier or before this pandemic, market was normal, buyers were showing interest and buying property, but things are 360-degree changes. And because of pandemic, real estate builders are decided that they will sale property with huge discounts or on less rates. Also, now builders are offering never seen offers and trying to engage buyers. So that buyers will purchase property and market will be improved.
Real Estate Project Delivery will Extend
After all the above or bad impacts, now major impact is project delay. Due to covid 19, workers or labors were moved or moving to their native places or villages. RERA already announced that due to corona under construction projects would be delay for 3-4 months. Due to covid 19, all the under-construction projects would be delayed, and all buyers will face late possession for their dream home or shop. And buyers must wait for 3-4 more months for possession of their project.