Articles

The impact of COVID19 on the real estate market in Mohali

by Sandeep Pandey Blogger

The 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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About Sandeep Pandey Advanced   Blogger

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Joined APSense since, October 13th, 2011, From New Delhi, India.

Created on Apr 26th 2021 10:24. Viewed 82 times.

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