CA Prakash Suneja
Amid Coronavirus pandemic a big challenge is for real estate sector.
Real estate sector alone can change the economy of the country.
After the lifting of lockdown it is a big challenge for the real estate sector for development and growth.
If we see the opportunity side in the real estate sector real estate sector has a future because it is safest place to invest and a matter of prestige with higher returns.
In last few years real estate sector suffers losses due to change of laws and peoples investment planning.
Due to higher rates and long commitments people don’t invest in real estates and because of this other sectors like equity markets derivatives fixed deposit in bank and post office along with mutual funds increase before covid 19.
Various analysts have forecasted up to thirty percent contraction in demand for new homes this year.
Market contractions are not equitably distributed among the market participants
Due to Covid 19 all sectors will get affected and mostly real estate sector will hit more. But Covid 19 will change the game of future if we take it positively.
Like automobile sector will be in demand due to social distancing norms people will own their own vehicle’s rather than to travel with OLA and Uber Zoom cars and public transport.
Like IT sector also will be in demand due to digitalization of everything.
In the same way Real Estate sector also have an positive approach this sector again will get demand in future as per analysis.
As per analysis of the market people spend more on hospitality travels restaurants gold luxury things like watches vehicle’s paintings.
As lockdown and covid teaches life lessons people and now in future people have to change their lifestyle to avoid these diseases.
As per analysis of the market and future, for some years people will avoid spending in different sectors like travel hospitality entertainment restaurants luxury things like gold & watches marriages and big gatherings and save the money in huge quantity and also stops investing equity markets mutual funds fixed deposits because of lower returns, so people’s money will be saved heavily.
Once people make heavy and big savings there is only one sector left that is Real estate.
With a big saving people can buy or invest in plots flats bungalows and agri lands and as per analysis banks are also reducing rate of interest for home loans for the growth of the real estate sector.
For the growth of the real estate sector promoters land owners builders have to more active and they have use digital modes for booking and marketing of the projects.
Even in lockdown time people are more using social apps so it’s opportunity for builders to do marketing for the projects and even after lockdown they have to provide digital facility for the growth of the sector.