The impact of COVID19 on the real estate market in Mohali
by Sandeep Pandey BloggerThe global pandemic of COVID 19 has had a huge impact on the Indian economy and
market as a whole. The Indian realty market too was a victim of the global
pandemic making it difficult for the market to recover. The commercial
office space in Mohali had suffered too, hitting the rock bottom. But at
present, as our country continues with the vaccination drive its positive
influence will also be witnessed in the country’s real estate sector. For
people seeking property near Chandigarh or
Mohali if the upgraded property schemes have any luck then the realty sector is
likely to expect better supply and sales. Since the price growth has seen an
impact, being under pressure since the past year due to the demand.
The rollout of vaccines will restore normalcy in the realty sector however much
has changed since the virus hit the world in the year 2018. Soon after the
outbreak business hit rock bottom with the country’s economy towards a
contraction indicating a slow recovery. As seen in the data by the research agency,
PropTiger housing sales in the eight major cities of India declined by 66%
(from July to September 2020). However, this outbreak had also made the home
buyers understand the value of ownership, which will give a solid sentiment
boost to the residential real estate. The data below shows the housing market
trends of India’s 8 top cities.
India’s top 8
metros’ Housing Market (from June to April 2020)
Sales |
< down
seventy-nine% |
Project launches |
< down eighty-one% |
Inventory |
738,335 units |
[Report by: PropTiger DataLabs]
The effect of a pandemic on the psyche was adverse, some
had lost their jobs with little to no money to support a property investment.
Whereas some prospective buyers were waiting for more job stability
clarification, delaying their property purchase. From construction respect,
the new projects had to be stopped due to lack of workforce and also due to
social distancing norms. The commercial segment too was victim to the
virus attack with the real estate sector suffering a huge blow. The places of
commercial ventures had to be shut, placing the potential commercial real estate on
hold. However, at present developers and experts are expecting a boost in the
real estate segment with the festive season around the corner.
Even though coronavirus had an adverse effect on the
realty segment it had some positive impact too on the real estate market in
Mohali. There has been a shift in low-density housing as people are now looking
to purchase properties in a good safe locality.
Moreover, the developers had devised a way to give house tours through
virtual digital methods due to the pandemic. This will attract buyers and will
make property hunting even easier. The commercial segment is also expected to
receive stimulation from the new incentives and schemes through the efforts by
GMADA. Also, after the outbreak, the home loan interest rates have hit their lowest in nearly 2 decades which is
expected to bring in demand of owing GMADA
approved projects in Mohali.
This global pandemic has changed the way we look at
the world, this holds true even for the realty sector. There has been a change
in the way of life with the new normal. This change has brought about a change
in the demand for the type of property. Irrespective of the drastic impact of
the pandemic in the year 2020, an improved situation is expected this year. With
the rising importance of investment and homeownership, commercial property in Mohali as well as residential properties
would have high demand in the coming year for the revival of this prospective
sector.
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Created on Apr 26th 2021 10:24. Viewed 441 times.