Impact of COVID-19 on Real ESTATE Business
The real estate industry is one of the largest industries of the Indian economy. It shrank down a lot during the first and second waves of COVID-19. However, many experts believed that this sector will revive in 2021. in the first quarter of 2021, the real estate industry did not show a significant increase in its profitability. But it realized a significant pick up in June and start reviving itself from the loss it faced due to COVID-19. Now potential buyers of property and houses have started their journey to discover their dream asset by contacting various vendors.
Below are the three significant aspects that will help you understand the impact of COVID-19 on the real estate business.
The demand for the property and housing industry tends to increase.
During the first wave of COVID-19, people saved significant savings to meet their primary needs. But now they are showing their interest in buying a new property to make a good living. As per many experts, the Indian real estate market is estimated to cross $1 trillion in 2030. it is a good indicator for the sellers and buyers of such housing property. Also, currently, this industry has employed around 5.5 crore people in 2019, which will touch to 7 crores in the upcoming future.
The supply of property also seems to increase.
Many surveys also state that there will be a potential increase in the supply of sellable property too. Many real estate businesses are entering this industry and offering affordable housing schemes for personal and commercial use. Nowadays, buying property is also getting more accessible, even for middle-class persons. Due to growth in the demand for housing, the property is encouraging sellers or vendors of property to come ahead and offer their assets to the potential buyer.
National average Prices of properties
So far, many real estate businesses are there; thus, the competition among these companies is also rising. These companies have reduced their profit margins to get a high number of sales on their properties. As per the real insights report, the national average of property per square ft is Rs6234, a fair price from the customer’s perspective. However, the prices of housing properties are decreasing. Yet, still, vendors are making good profit by generating a higher number of sales.
So, during the COVID-19 real estate sector suffered a lot but now it is reviving itself and attracting potential buyers. It can be the ideal time for the buyers because there is a 36% decline in the process of the properties. Thus, if you are also willing to buy one of the properties, it can be a great time to proceed with this decision.
