Due to corona virus pandemic, one cannot search for a business that has not been impacted. The pandemic has hit every market very hard as most parts of the world are shut to stop the spread of the deadly virus. According to several reports, retail, banking, real estate, and auto are among the worst affected sectors.
The novel virus has impacted the real estate to an all-time low level in March. According to a survey report, both the commercial as well as residential real estate sectors will face a crisis in terms of project launches, prices, and sales.
Listed below are the factors that have impacted the real estate in India:
Projects are Delayed-
The projects are delayed as everything is closed due to corona virus. Construction work is on hold and will be delayed for months. Even after the lockdown, Real estate developers Ghaziabad will take time to resume the construction work as many laborers are in their hometown.
Buyers & Developers Have Postponed the Projects-
There is also a supply and demand disruption as India is under complete lockdown to prevent the spread of corona virus. Currently, there is uncertainty and people have canceled their plans to invest in real estate. Also, developers have postponed the projects which were settled for March-April, leading to low home sales.
Increased Costs of Raw Material-
As per the experts, there will be no change in the prices and the prices will reappear on the same level after lockdown. However, there can be an increased cost of raw materials as most of the countries are shut, the production of China is decreasing which may lead to an increased cost. The increased cost of raw material will lower the profit margins for builders in Ghaziabad.
Retail Commercial Sector Will Be Impacted-
According to the report by ICRA, the retail commercial sector will be impacted as the country is in lockdown as announced by Prime Minister Narendra Modi to contain the spread of the virus. The real estate in India will be massively affected due to this pandemic that has infected about 2 million people all around the world. Developers have delayed their project launches, people do not want to invest in the real estate market due to this pandemic. However many of them are interested in investing their money on Flats in NH 24 Ghaziabad but even after this, the real estate sector will take time to end the economic distress.