It is always believed that Real Estate is the only Industry that always booms and can never be lost or stolen, nor can it be carried away. It is always a good bet to invest in a property as it is considered as the safest investment.
As Covid has hit the World hard, the whole Economy of the World have been hit badly, let alone the Real Estate Market. But the question which comes in picture is how much have it impacted the Realty Business?
Many people have observed that Real Estate Market is set to see a setback of atleast 2-3 years post the Covid breakdown, while other companies and investors feel otherwise.
Projections by the International Monetary Fund (IMF) say India is headed towards a historic contraction of 4.5% in FY21, as a fallout of the Covid-19 Pandemic and as per a report by Bloomberg, in H1 of CY20, the global real estate investments have declined by 33%. This is a big drawback for any industry specially the one dependant highly on labour class since the whole World is working from home and any industry depended upon labour and on site work can never operate like that. This is one of the biggest drawback seen in realty during the Pandemic.
In many cities, the realtors have been Firm about property prices and denied to decrease them. However, one-to one negotiations directly resulted in +20% discounts so as to sell unsold inventory.
Another impact on real estate have been on the Office Properties. As the World started working from home, about 27% office spaces supply have decreased leading to a loop hole which might take some time to fill in.
The sector have been seeing a decline since a while and this Covid Breakdown have made it ever worse. But as they say, there always sunshine after the rain, a new ray of hope have been seen by realtors as the FDI is reviewing its policy for a 100% investment in Real Estate. Companies with mix of retail and residential properties might get recovered soon but eventually Realty Market will see the sunshine again. And when that happens, don’t forget to book your dream home in Rizvi Utopia and Rizvi Cedar.