Property Price Trend During COVID-19by Kasturi Pillay Developer
Many potential buyers and even the Indian Commerce Minister Piyush Goyal suggesting that there was a price decline in the real estate industry due to COVID 19 pandemic. They conclude that the prices of properties have barely increased or not increased at all in the past few years. All the key real estate hotspots are already saturated in most markets and are not going to go any lower.
According to a recent survey, of Property Buyer Sentiment Survey 3rd Edition, which was conducted in October 2020, the majority of respondents do not believe that the price of the property is not going to drop further.
Some of the best property builders in Pune think that there wasn’t a major increase in the prices of the properties.
Factors behind the low increase of property prices
One of the biggest factors that have led to a low increase in prices is the prolonged period of stagnant prices of properties right before the COVID 19 crisis. The prices of properties in the real estate industry were already low before the pandemic and after that, it made it much worse.
In the last few years, some of the best property builders in Pune have seen the Indian government implementing bold reforms to expose black money which used to be a great influence in this sector. With reforms and rules like the demonetization and introduction of the RERA of 2016 (Real Estate Regulation and Development Act), the sector (and economy) has got big bumps that have led to stagnant prices over the last 4 – 5 years.
Trends from 2020 have already refused theories that the price will fall
The pandemic year began with a lot of contemplation that the real estate industry might see a moderate to high price crash if the situation worsens.
In a meeting organized by NAREDCO (National Real Estate Development Council in June 2020, Piyush Goyal appealed to the developers to sell their unsold properties at any price possible, indicating that the government won’t be able to provide and substantial support to this sector.
At this point when the entire world was shutting everything down, many experts believe that the best property builders in Pune and developers who will be able to become less leveraged after selling their old inventory will be the ones who will come out of this grim situation easily. They also believed that the other developers might fall or need support.
Overall, the real estate industry in India is seeing a gradual increase in stagnant prices which was further decreased in the COVID 19 pandemic.
So, here we come to an end to this article, the latest property trends haven’t been promising for the developers but it hasn’t been the worst as some people expected. After this pandemic is over, the prices will most likely increase.
Created on May 19th 2021 05:34. Viewed 155 times.