By Runwal Group Posted On Jul 07, 2020
Category Residential properties
The real estate market is rife with guesses, assumptions and predictions over the future of the industry right now. Of course, it is because the Covid19 crisis has cast clouds of uncertainty over property sales.
Due to the unceasing spread of the virus, consumers are feeling insecure to visit project sites, even while the lockdown is lifted. On top of that, the dire state of the economy has made them worry about their jobs, and consequently, feel apprehensive about making big spends. This has caused the stock of unsold inventory to pile up and birthed assumptions about the cut-down of property prices in India.
However, such assumptions might just stay assumptions after-all! Here are 3 reasons why:
The prices of properties depend significantly on the ratio of demand and supply of properties in the market. While experts are predicting that sales may dip in the next 3 months, they also think that the prices may not. The main reason behind this could be the lack of project launches offsetting the fall in demand, thus maintaining the demand-supply ratio.
A majority of the construction material in India comes from China. Due to the current crisis, the import of materials is completely stopped since the past few weeks. To provide an indirect relief to developers, the government may provide tax waivers on unsold inventory.
To boost the economy, RBI brought down the repo rate to 4.4% recently. As a result of this, home loan interest rates are at an all-time low between 7.15% and 7.8%. This may encourage homebuyers to invest in real estate, provided that the employment market is stable.
While these appear to be silver linings to the clouds that loom over Indian real estate, only time will tell what happens next.
Though there’s no avoiding the fact that real estate has hit a low right now, seasoned investors will still invest in a property. Why? Simply because they know an old rule: when it is a bad time to sell, it is a great time to buy! They will make the most of the current market conditions and buy properties at low prices now, only to sell at high prices and increase their profits later.
If you too would like to explore an investment opportunity, we at Runwal Developers have a number of luxury flats in Mumbai available. You can visit our website to explore our projects and contact us - http://runwalgroup.in/contact#tab-3