As each and every sector as slow down because of lockdown, Even real estate sector has been in this race.
Their are some factors that is affecting Indian real estate directly or indirectly as CoronaVirus spread.
1. Lower customer demand :- To stop the virus spread, government has been requesting people to stay in their home for 21 days of lockdown period, March and April has been know as best month in real estate sector because most of the people prefer this season for booking. As many projects don’t have any visitors the bookings have been almost stopped. But, It’s a short term problem because plans are not gonna cancel as it is hold due to virus.
2. Shortage of construction material :- China is one of the biggest production Hub in the world, and they are also the biggest exporter of steel.
As India imports huge quantity of steel, woods and tiles..etc, from China. But, in this situation China has also stopped the production due to the lockdown because of this India is facing a shortage of material and price hike, So most of the projects has been slow down.
3. Lower Interest rates :- More than 90% of the people in India mortgage the property, An economical slow down has been raised due to the corona virus because of that, Interest rate of home loan is going reduced to 8% and even RBI may reduce REPO rates. Loss in rate of interest is going to attract investors. So, because of short term slow down investors are going to get long term benefits.
4. Share market crisis :- Share market falls every 1 or 2 decades, when ever share market gets crashed Investors switch their money into Gold, Dollar and Real Estate which will be an great rise in real estate sector.
So, as per the conclusion Indian real estate has already been affected but in a short term, once the effect of virus gets down real estate sector is going to be in normal track in no time and this is the best time to invest in real estate.