With the rising number of positive Coronavirus cases and the constant anxiety gripping people, the world is preparing for a new normal. I doubt if there exists any business that has not been impacted by the pandemic. The real estate sector in India was already struggling with low sales, changes in regulations and project delays. No contact meetings and zero visitors have been added to the industry. Most of us have been locked inside due to the pandemic and how we feel or think about real estate or home will change post COVID-19. One thing is for sure, we are looking at an uncertain future, though with a lot of optimism.
Hello Everyone, I am Rohit Reddy, a known name in the Indian real estate industry. I believe that the extent of quantum depends on the duration of the lockdown and the time economy takes to get back on track.
As a Real Estate Developer myself, I have brought some insight into how the market might look like once Coronavirus bids farewell:
Labour Unavailability: Even after the lockdown is lifted, developers will find it challenging to start their construction work in a full-fledged manner as most of the labourers had already left for the safety of their villages and hometowns before the lockdown began. Additionally, many of them may opt to stay back in their villages in fear of the looming dangers of infection in the cities.
Rise in Cost: If the labour force refuses to rejoin, the cost of labour will increase, leading to a higher cost of building the establishments. I, Rohit Reddy, the man behind several luxurious real estate developments, can tell you from my experience that the restrictions on supplies and their movements may also increase the cost of materials.
Stable Prices: The cost of materials and buildings will not be transferred to the buyer. This is because most of us are seeing minimum to nil transactions. So, if the money does not change hands, there is no question of increasing or even decreasing the price.
As a seasoned player in this field, I can say that discounts have already been included in the current prices because of the challenging times. The industry had been putting up with even before the lockdown began. We developers were trying to attract as many customers as possible for quite some time now.
Disruption in Demand and Supply: When times are uncertain and unsure, most people postpone big purchases. As a result, home sales also stagger.
One of the best real estate developers, I tend to launch projects during festivals. However, owing to the ongoing crisis situation, I have deferred my plans this year. So have many other developers.
Home is the Safest Place: Chances of people buying new homes are not entirely vague. This reminds me of the proverbial silver lining behind the dark cloud. I would love to stay at home to keep my family safe. Most people have realized the importance of a home and its safe environment. As work from home opportunities have increased, and more and more firms may allow their employees to continue working this way, people are trying to make sure that they own the right spaces.