Ever since the Coronavirus struck the planet in December 2019, much has altered. In the midst of countries applying drastic steps to curb the pandemic, companies have come to a worldwide virtual standstill, prompting monetary agencies, including India, to cut growth projections for the global economy.
Although the adverse effects of the pandemic are already being felt worldwide, different views are emerging on the influence of COVID-19 on the real estate market, a health emergency that launched the world's largest work -from - home experiment ever, placing a question mark on the importance of workspace in a post coronavirus world. In the Indian background, the effects of the outbreak of COVID-19 seems devastating. With national GDP plummeting into negative figures, the country appears to be experiencing one of its worst economic recessions.
The real estate market, too, has reached the lowest of the lows in the nearly three-month national lockdown. Although construction activities came to a complete halt, reversing the influx of workers rendered it even more difficult to resume work. Developers have faced extreme credit constraints and home buyers have lost a large appetite for property transactions after the labor market has been deeply bitten. Home sales and new property launches have suffered a great deal as the nation struggled to combat the pandemic. Six months into the scenario, real estate demand seems to be catching up with actual property investors eager to take advantage of decreased demand and increased bargaining ability. Development work across the construction sites, too, appears to have started, but at a slower speed.
Looking from an Indian business process perspective, the outbreak of COVID-19 could be an opportunity for Indian enterprises to increase their production potential and provide impetus to the "Make In India" movement. The Government of India is also promoting steel suppliers to expand their production capacity and increase its market share. The Ministry of Steel is preparing a policy to promote the manufacture of 10 million tonnes of special steel for Rs 50,000 crore.
Besides, solar panel manufacturing companies may also benefit from the lower supply from China and increase production to mitigate long-term costs. Moreover, a sudden windfall of exceptionally low oil prices left the central government with surplus capital. This money will be used to support the manufacturing sector and to provide aid to the housing sector.
The fact that companies would decrease their workforce would also cause many prospective buyers to wait for clarification about their job security before making a final decision on the purchasing of land. Although the RBI implemented multiple tax changes, bringing the repo rate beneath to 4%, any beneficial impact of the move on the buyer's confidence would be seen only in the medium to long term. The measure, however, will come as a significant help to existing customers, who might be struggling to pay EMIs in the short or medium term, due to a lockdown or in the event of mass layoffs. Several initiatives announced by the government in its coronavirus specific stimulus package and the EMI relief for developers during the critical time are some steps that could provide some relief to the builder community.
COVID-19 also induced Work From Home (WFH) is expected to take housing to the next level, as future buyers will look to move to the periphery for larger homes and a better standard of living at cheaper prices. The earlier idea of residential housing, which centered around the walk-to-work / short-drive approach to work by the definition only all across central corporate office hubs may bring some of its prominence to the working class. The Work From Home idea may become the next pivot point for home-buying decisions, where having to walk-to-work alternatives has had the longest impact.
This, and millennial's' new preference for purchasing rather than leasing homes, is one of the most influential new residential home property developments of the COVID-19 era. With the rise in WFH fashion, many may now prefer to sleep in more spacious and cost-effective homes in less central areas. Although ample supply exists today in most outer regions, this new demand will inevitably also dictate fresh supply. Bigger houses, affordable rates, and more spacious open spaces in the periphery, and these areas will attract interest from renters and buyers alike. In Nagpur, the MIHAN area is the most rapidly developing outer area, where many multinational companies have set up their business. There are many 2 and 3 bhk flats for sale in Nagpur with ample amenities which makes your work from home experience more intriguing and comfortable. It is undoubtedly extremely safe to invest your money in the properties situated in MIHAN as the value of their property will skyrocket in near future and this investment will prove to be more or less a big asset in your balance sheet.
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