Impact of COVID-19 Second Wave on Indian Real Estate
Like other businesses, the Indian real estate sector is disturbed under the effect of the COVID-19 crisis. While cash flow interruptions and the lack of workers have actually posed certain challenges, the long-term anticipation of the industry does not seem to be hopeless. As a matter of fact, many experts predict the demand in the segment to rise diversified, especially following the growth in e-commerce. The 2nd wave of COVID-19 has been much more dangerous than the 1st one. The real estate sector has seen a change over the past few months in debt to the gesture of the pandemic. Real estate professionals have different judgments on the impact of the 2nd wave on the real estate sector.
And, the second wave of COVID-19 has stopped the recovery rate of the real estate sector. It has exceptionally put the break on the exercise of new project launches and sales. Unluckily, the pandemic has once again disrupted the activities and operations of the sector. As per industry professionals and experts, the sales have started dropping since mid-April and the situation is likely to depress in case the third wave goes on.
Real estate is the only sector that noted a powerful recovery from the impact of the pandemic. It had endorsed extraordinary sales from the last three quarters, but now the ferocious rise of new COVID-19 cases in the second wave comes as a shock for many real estate developers. Real Estate developers are distressed since their money and new project launches are at wager. They are afraid about the future of the real estate segment as things won’t come under control for a very long time in case the dangerous third wave of COVID-19 hits India.
Conspicuous issues that continue to command the real estate market in the second wave of COVID-19 are flattening sales, migration of labour, upsurge in the prices of construction, cash flow issues, and the decline in buyer sentiment. During all these issues, the real estate sector needs the support of the government, in the form of implementation of stress funds, stimulus packages, further reforms, and most essentially the sector needs the support of labourers.
According to the latest reports of the industry, homebuyers who were curious about buying new homes have become frightened of the cautionary coronavirus and due to a rise in COVID cases, they are avoiding visiting sites. The same is the issue with renting homes, property owners are suspicious of renting their home to absolute strangers.
In the second wave of COVID-19 prices are likely to remain constant and if the circumstances continue to be the same or worsen at some point in time, then a lowering in the prices of property is also expected. More than ever, real estate developers are playing intact as they do not want to disrupt the momentum by needlessly escalating property prices.
Industry experts consider that the April-June quarter will get markedly affected by the quick spread of the deadly virus. All eyes are on the process of the vaccination drive since it is the only prospect that can bring the real estate sector back on track. There is hope for recovery of the real estate sector in the third quarter, however, if the contemplated third wave is to knock the country, it could prove overwhelming for the sector. As of now all we can do is only wait and watch as to how the future months will unravel.
