While we have seen various economic and political crises, the COVID-19 is perhaps the biggest ever global crisis since the Great Depression in the late 1920s. This crisis or pandemic will change the way most businesses operate in the foreseeable future. Needless to say, real estate would be no exception. Naturally, there will be an effect on residential real estate in next 12-18 months.
Now, consumers are embracing the idea that their own home is the safest place to reside in. Buyers are now resorting to digital medium to book homes.
“While we have seen online demand for residential real estate declining in the initial phase, we are seeing demand come back in the new homes, resale and rental segments. We also believe that as companies implement remote working, demand for residential real estate may spur demand in new micro-markets including Tier 2 and Tier 3 cities where homes are more affordable,” says Mani Rangarajan, Group COO, Housing.com, Makaan and PropTiger.
Having said that, residential realty is likely to experience a huge impact, according to Avneesh Sood, Director, Eros Group. He points out that there is a belief among many that they will lose jobs and would not like to take a long-term loan where they are not confident about the future. Many developers across the country may not be able to sustain the present debts and would go bankrupt if the government does not come out with a relief sooner than later.
“Even labour would not come back to cities if they feel safer in their villages, which might end up increasing the cost. With labour unavailability, the costs of construction would go up and the supply constraints will result in an increase in the cost of materials,” he adds.
Denne historien er fra June 2020-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra June 2020-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Here's How To Claim Tax Refund If You Missed The ITR Deadline
The Income-tax Act, 1961, allows the refund of any excess income tax deducted on your income beyond your actual tax liability.
26 Spiels You Should Not Fall For
We have a list of 26 traps that you should avoid in your journey to creating wealth
Unified Pension Scheme
The Union Cabinet approved the Unified Pension Scheme (UPS) on August 24, 2024, guaranteeing 50 per cent of the salary as assured pension for central government employees.
Unlocking Financial Freedom with Freedom SIP: A Beginner's Guide
Freedom SIP is the smartest way to finance your retirement because it allows you to ride the compounding rocket to build wealth, even by investing a small monthly sum.
Asset Allocation Strategy to Safeguard Against Market Fluctuations
Invest in different asset classes, such as equities, debt, gold, etc., so that if a particular segment doesn't perform in a given situation, others will come to the rescue.
The Role of Asset Allocation in Investing
A proper mix of asset allocation that aligns with investor's goals is key to the portfolio's long-term performance and reaching milestones.
Why Retirement Planning is Crucial in Life
Retirement planning is the key if you want a financially secure life in your sunset years.
IS SENIOR HOUSING FOR YOU?
Many seniors have taken refuge in senior living facilities in their twilight years as their children have moved abroad. While that may help them ward off boredom, they often come at a huge cost
WITH OR WITHOUT INDEXATION: WHEN DO HOMEOWNERS PAY LESS?
Calculating taxes under both methods-considering inflation and property appreciation-can yield a more precise result
Flexing Its Way Across Market Cycles
Very few funds meet investors' expectations of delivering superior returns across market cycles, and HDFC Flexi Cap Fund is one of them.