Skip to main content

COVID – 19: EFFECT ON REAL ESTATE SECTOR

COVID – 19: EFFECT ON REAL ESTATE SECTOR



As we all know that outbreak of COVID19 in Wuhan and the recent spread in almost all countries has impacted the entire industries and the business sentiment. In India all industries shut down for time being during lockdown and affected by this pandemic diseases.

As we know that Real estate is an emotion based sector and in past few days overall market is fluctuating in high frequency. Those who are having habit of investing in a stock market, has switched their 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 of 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 which has managed with rental support can gives better & stable revenue in the form of rental Incomes. Rented property profits normally remains greater than dividend yields.

The Real Estate Regulation and Development(RERA) Act 2016, provides for 1 year extension in project execution timelines, in case of events beyond the promoter’s control so regulatory risks maybe reduce in case of a 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 temporary period
•RBI should provide banks relaxation in bad-debt norms for 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 best suitable project as individuals feels more Security in regular and passive income.
3. Share market fluctuations affected much business so investing in real estate may bring investors into really investment.

4. Real estate experts saying that there are some good deals available in the market and the scope for negotiations is high so buyers can approach for 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 opportunity to buyers and sellers.

AxiseCorp 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 Corona virus’s impact on Real estate till Indian government announced for lifting lockdown and take any economic action on this sector.
Real Estate Blog DirectoryBlogs Directory

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Shifting Focus From Metro Cities to Tourist Destinations : Aditya Kushwaha

  While the COVID-19 has by and large dented the confidence level of the real estate developers, Aditya Kushwaha, CEO & Director of Axis Ecorp believes there are a silver lining for the players who are forward-looking in their approach. In an exclusive interview with Track2Realty, Kushwaha asserts that the Work From Home trend would shift the focus from top metro cities to open spaces in and around the tourist destinations. He, therefore, urges the government to look at the Holiday Home segment as a priority sector. Ravi Sinha: 2020 has generally been a bad year for the sector. Has there been any positive developments that bodes well for the year ahead? Aditya Kushwaha:  The real estate sector was already in bad shape before the Covid-19 pandemic, which has only added to the troubles of the distressed industry. April and May were probably the worst months when the economy was broken badly, however recently there has been a good spike in the recovery of the real estat...
Post a Comment
Read more

Demand for Holiday Homes Gains Traction Amid Pandemic

As the pandemic has significantly impacted the operations of businesses and people's working model, housing preferences also have changed and the demand for holiday homes or second homes has increased in the past few months. According to Aditya Kushwaha, CEO & Director Axis Ecorp , the need for a perfect balance between work and personal life has fuelled the concept of a weekend retreat in a holiday home.    "Due to the COVID-19 pandemic, the concept of a holiday home or a second home has gained widespread acceptance. With most of the corporate professionals working from home, geography is no longer a constraint," he said. He also noted that from the investment perspective, second homes in non-metro cities are a relatively safe investment option with higher capital appreciation compared to homes in metros, especially during COVID-19, when alternative options such as mutual funds, shares have seen diminishing returns. These properties can be rented out to home-stays an...
Post a Comment
Read more

Axis E Corp Association With “On The Idea Of Aatmanirbharta”

Axis E Corp Association With “On The Idea Of Aatmanirbharta” Now Indian is moving forward with a new resolve and determination. Honorable Prime Minister of India stated that “We can make India a self-reliant nation (Aatmanirbhar Bharat). We will make India self-reliant.” PM Modi announced a Rs 20 Lakh-crore stimulus package that is equivalent to 10% of India’s GDP aiming to make the country self-reliant and reviving the stalled economy. On the Idea of ATMANIRBHARTA (Self-reliant), a live session was conducted successfully, about India Incoming Movement with Shri Sanjeev Sanyal (Principal Economic Advisor to Finance Minister) with Shri Prabhu Chawla (Editorial Director, The New Indian Express) and Shri Shankkar Aiyar (Author and Political Economy Analyst) under the Banner of Indian Express in association with AxisEcorp . Sanjiv Sanyal said that “There is significant scope to bring interest rates down to power through the current economic crisis caused by the pandemic”. Sanjiv...
Post a Comment
Read more