COVID – 19: EFFECT ON REAL ESTATE SECTOR
As we all know the outbreak of COVID19 in Wuhan and the recent spread in almost all countries have impacted the entire industries and business sentiment. In India, all industries shut down for time being during the lockdown and affected by this pandemic diseases.
As we know that Real estate is an emotion-based sector and in the past few days overall the market is fluctuating in high frequency. Those who are having a habit of investing in a stock market has switched its portfolio towards real estate, as they feel some restriction as freedom because mostly investor needs to allow someone else to manage and control of their fund and this situation may create some demand for Real estate properties (residential or commercial) and maybe a good option for buyers to invest in real estate residential and commercial properties.
This is well known that a stock pays dividends but a commercial real estate that has managed with rental support can give better & stable revenue in the form of rental Incomes. Rented property profits normally remain greater than dividend yields.
The Real Estate Regulation and Development(RERA) Act 2016, provides for a 1-year extension in project execution timelines, in case of events beyond the promoter’s control so regulatory risks may be reduced in case of short-term disruption.
Real estate sectors request from the Indian government to survive the lockdown, these are-
• Asking for tax benefit under the Income-tax act
•Reduce GST and waive off
•Reduce stamp duty for a temporary period
•RBI should provide banks relaxation in bad-debt norms for a few months
•One-time restructuring of stressed developers loans
•Direct banks to lend more to NBFC
Here we listed some opportunity given by real estate to developer due to COVID 19-
1. The Possibility of NRI Will come back to India is high and probably they will invest in real estate to utilize savings.
2. People will approach this option of earning where Axis Blues(Real Estate developer in Goa) offers the best suitable project as individuals feel more Security in regular and passive income.
3. Share market fluctuations affected much business so investing in real estate may bring investors into real investment.
4. Real estate experts are saying that there are some good deals available in the market and the scope for negotiations is high so buyers can approach these deals.
5. The fall down of Indian rupees against the US dollar is a factor of considerable interest for NRIs considering Indian real estate as the most sensible investment option.
And many more positive aspects can be placed. So we can say that this pandemic may give proactive opportunities to buyers and sellers.
Axis-eCorp is the leading Real Estate developer in Goa offers high standards Resort living with world-class residential and commercial real estate properties and hospitality to their customers.
It would be unfair to predict much more on the Corona virus’s impact on the Real estate until the Indian government announced for lifting lockdown and take any economic action on this sector.