The on-going pandemic called COVID-19 has ruptured the economy all around the world. The worst-hit sector in the economy is the real estate sector. Even the Indian real estate market has not been spared from the bad effects of the slow down economy. The real estate sector which is one of the biggest contributors to the Indian economy has also taken a massive hit. It would be an understatement to say real estate builders in Thane are struggling at the moment. The situation needs to be dire if the real estate market is struggling in Thane. This article aims to understand the impact of COVID 19 has on the real estate market in Thane.
2020 was expected to be the year that the industry was expected to bounce back and recover but due to the on-going pandemic; the recovery has been halted even after new initiatives that were launched by the government to encourage people to buy property. However, people who are considering buying a property have increased as the lockdown has made people understand the importance of owning their own house. Residential property in Thane is seeing a new high in demand and is doing better than expected. Due to pandemic lockdown, the construction of new projects has come to a complete halt. With everything being shut it is easy to understand why we cannot expect the revival of the real estate industry this year.
Before the pandemic in an attempt to revive the real estate market, the government was offering heavy tax rebates with other offers that had a lot of people interested. However, property buyers are now too scared to step out of their house, and even if they want to, they cannot due to the government impose lockdown. Homebuyers are also not sure about the security of their job and have postponed the plans of buying the house to a later date when they are sure that their job is secured. The majority of people have put aside their house-buying plans for at least the next six months until the market has a chance to open up again.
Real estate developers in Thane were holding onto unsold stock worth rupees 5 lakh crores according to data from various developers. Other Than this the construction of future projects has also come to a halt due to fractured trade lines and lock down all around the world. However, the government sympathizes with the developers and has come up with many plans for the real estate developers in Thane to survive. The government is offering a lucrative stimulus package and is also giving people an EMI holiday during which the developers need to just pay the interest.
Corporations around the world have announced work from home for employees to contain the virus spread. Some companies have witnessed a lot of growth during this period and this has triggered a debate of whether workspaces are even important for a company to function. There are chances of companies giving up on office spaces entirely. Whether it happens or not the predictions seem to be gloomy. If corporations truly adopt work from home ideology the commercial real estate can see a big dip in their revenue soon. It is expected to see a slowdown in growth momentum that the commercial real estate market had.
It is also important to note that even though you might see some decrease in prices the prices won’t be lowered significantly as the cost of building the project will increase significantly. So when all is said and done, you could expect the market to see growth slowly but the growth rate will increase exponentially once the market stabilizes.
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