COVID-19: How Indian Housing Market Will Be Affected?

“Be greedy when others are fearful, and be fearful when others are greedy.”

~ Warren Buffet 

Amid countries battling to contain the coronavirus outbreak, thousands of casualties have already taken place. With roots at the Wuhan district of China, coronavirus has crossed beyond the Chinese boundaries and affected the entire world, spreading in an unpredictable way. Given the huge population of India, the uneven spread of the healthcare systems and low permeability, it would be quite challenging for the country to tackle the crisis. Chinese manufacturing has been severely knocked down, disrupting the entire global supply chain. The devastating impact of the crisis is reverberating around the globe. All the major sectors such as the airline and stock exchange etc. have been severely hit.

However, the Indian housing sector has always embraced challenges, showing resilience and successfully absorbing numerous shockwaves such as RERA, GST implementation, demonetization, and the NBFC crisis. The present COVID-induced crisis is also not bereft of hidden opportunities for the sector. Believed to be a safe asset class for investing, big industrialists and others might actually pivot the sector in large volumes. With the stock markets stooping down, real estate becomes the next best choice for many buyers and investors to park their capital.

Pros of Investing In Property in the Present Scenario:

It takes a nerve of steel to sign up for a big investment when the economic outlook is bleak, fear and pessimism are rampant and unemployment is rising. But there’s probably no better time than this if you have the finances and savings set aside for buying your dream2 BHK flat in Thane. Reason- the rock-bottom interest rates that make it a great time to invest in property. With each passing day, the real estate market is evolving to be a buyer’s market. The present buying conditions represent a great opportunity for investors.

Unlike other investments, property is a long-term purchase. Experts believe that owning a home you can call your own is a sound way to ensure long-term financial security.  While markets can dip instantly in no time, property values will eventually appreciate after the crisis.

Why Stocks, Mutual Funds Equity Or Gold Are A No? Real Estate – A Safe Haven

The widespread collapse of manufacturing and exports has led to a mass shut down of factories and businesses across the globe. The new economic growth forecast has been decreased from the one forecasted previously. The slumping economy is witnessing its worst time in the form of plunging mutual funds. Stocks are fluctuating wildly with no assurance of profits, and gold prices are an all-time high. Real estate investment, no doubts is a safe haven for investors in such a scenario.

Loan Availability:

If the COVID-19 threat continues, RBI is likely to revise its monetary policy in view of the global trends to allay the fear of massive recession. This means further lowering down of interest rates for home loans.

With banks reducing lending rates, more people would be able to utilize the advantage of incentives to invest in residential property.

Conclusion: The intrinsic domestic demand for property will remain to be strong. The price correction due to the pandemic has opened new opportunities for buyers to buy 2BHK flat in Ghodbunder Road or a 2BHK flat in western suburbs on a much lower value.

Corporate Comm India (CCI Newswire)