Buying or selling a property in India saw a drastic change with the pandemic outbreak. Every business vertical was affected including the real estate sector of India. Even after a year, the situation is almost mirrored. A majority of Indian cities went under total lockdown and curfews. With zero work, the real estate industry suffered a lot, highlighting the negative impact of Covid-19. The success rate dropped by 60% and was recorded as the biggest downfall of the decade. Further hampering is expected if the condition doesn’t shift on the better side. This will definitely make buying or selling property in India a catch 22.
Lack of Migrant Workers
One of the biggest and un-ignorable factors that hampered real estate sector is the lack of migrant workers. As seen in the previous year, a lot of laborers migrated to their hometown. The migration created a huge sensation throughout the country. Without laborers, constructing a property is not possible. Contractors require workforce for completing the work and without workforce, executing construction process cannot happen. As a result, may on-going construction projects have been halted.
Fear of Virus Transmission
People are afraid of transmitting virus. Undoubtedly, it is jeopardizing for everyone. People prefer staying indoors and step outside only when it is essential. Many property buyers & sellers have delayed their deals owing to the fear of transmitting virus.
Reduced Foreign Investment
The Indian realty space is suffering due to Covid-19. This is because NRIs have reduced their investment that benefits the Indian realty space. Since different business verticals are facing crises, they are leaving some sort of impact on the realty space.
Construction Site Safety
Not all construction sites have been closed. There are some workers that are still stuck due to some reasons. They need to work wherever possible. But as per the stringency, RT-PCR tests have been made mandatory. Until the report arrives, people prefer delaying the work. This is another reason why people are talking about delays.
Government Extended Support
The government has extended a helping hand that would help realtors in bearing the loss and uplift the falling real estate industry. Many on-going building projects that were halted and couldn’t meet the deadline have received completion extensions by 6-9 months. This will aid in the execution of many on-going projects.
All the RERA registered residential projects have received extensions as well. Moreover, they’ll be provided additional funds for continuing the process to bring the industry back on track. These will be funded by the government-related schemes.
A Ray of Hope
The increasing rate of Covid-19 transmission and skyrocketing mortality rate, things will take a pause for some time. Instead of sulking over them, it is better to devise new strategies that will contribute to uplift the realty space of India. Slowly, the pace of buying and selling a property in India, whether commercial or residential, will get back on track.