The Future of Realty Sector in Gurgaon – The global epidemic caused by COVID-19 has resulted in a nationwide lockdown, and this has significantly impacted almost all the sectors, and India’s real estate is no exception. The future of the realty industry is still uncertain after the unlock 2.0 in India. Before the global pandemic of COVID-19, the realty industry struggled to recover from the significant liquidity catastrophe. An increment has been observed in the sales of real estate property across India, including Affordable Housing in Gurgaon. It was giving a ray of hope for the realty companies. Let us have a look at how the pandemic has affected the Indian realty market.
Impact of COVID-19 in Indian Realty Market
- Lack of Materials – Earlier, the builders used to rely completely on the construction materials imported from foreign nations, including China. Iron and steel, electronic equipment, construction equipment and more were imported, and due to lockdown, all these imports were blocked. Now developers were facing a shortage of equipment, and hence there is a delay in the construction process post lockdown.
- Lack of Buyers – The sales of residential properties is declined after lockdown. The main reason is that buyers are unable to visit the site in person to finalize the things. Even during the lockdown, the site visits were reduced because most of the buyers prefer to stay at home. Plus, the outbreak and lockdown have impacted the income of buyers, and many have become unemployed in the private sector, which has further impacted India’s sales of property.
- Increasing Unsold Inventory – The real estate market of Gurgaon is suffering from a constant increase in unsold inventory. It is the top priority of developers to clear these inventories. But the property sales have declined after lockdown, and there is no sign of getting those unsold inventories sold out any soon now. As the unsold property gets older, it becomes less attractive, and buyers usually prefer newly constructed properties.
What are the Problems Lie in Near Future Post Lockdown?
- Property Rates – The rates of property started falling down post lockdown. There is a sudden decline in sales, and this has forced the builders and developers to lower the prices and also offer discounts on property. It is not good news for builders and homeowners who are planning to resell their property in Gurgaon, but homebuyers can benefit from the lower prices.
- Affordable Housing – There is positive news for the properties developed under the Affordable Housing Scheme in Gurgaon as it is expected to record a major boost post lockdown. The government is focusing on offering 1.03 Cr affordable homes by 2022 under the PMAY-U scheme. The projects were delayed due to lockdown and pandemic, and after lockdown, a sudden rush has been observed in the affordable segment. To complete the projects within 2022, the government announced some new waivers and concessions for affordable homes. Affordable homes were high in demand before lockdown, and it is likely to flourish quickly after lockdown also.
- Liquidity Crisis – The realty segment of India is already facing a liquidity crisis, and due to lockdown, the situation turned worse. Before the COVID-19 pandemic, the government has announced several relief funds and tax benefits to support the industry’s recovery. Funding window of Rs. 25 000 Cr was offered to help delayed projects to complete quickly, and there was also a tax holiday period for developers and discounts on home loans. Due to the pandemic caused by COVID-19, all these were stalled from being implemented. Therefore, the liquidity crisis is still prevailing and may worsen post lockdown.
The Future of Realty Sector in Gurgaon Post Lockdown
Digitalization – Because of the difficult situations caused by COVID-19, many developers and builders have opted for digital platforms to promote their properties and projects. Many reputed developers are offering a virtual tour of the property and video conferences as buyers are unable to visit the site. They are offering special time slots when investors can visit the site with maximum safety and security. The property deals are also carried out virtually to minimize physical contact. So, developers and builders are now going digital to carry out the property deals. This trend is expected to continue post lockdown as more people have started realizing the conveniences and benefits offered by digitalization.