If you have been following the news about COVID-19, you must have read about how there might be a third wave of the pandemic in the upcoming months. The first two waves severely affected the livelihood, jobs and life aspirations of millions of people. One of the few sectors that did not get affected as badly was the real estate sector in metro cities such as Delhi. The overall Delhi flat price is still close to what it was in 2019 before the pandemic began. But, what will be the impact of property prices of Covid and will the third wave of the pandemic crash the real estate market? Let’s find out.
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Understanding the Trend of Property Prices
Being a real estate expert, I can understand why many of my peers were predicting a
property prices crash in India during the second wave. The virus was spreading rapidly, and people needed money to take care of hospital bills. But, the anticipated property prices crash in India did not occur, and the real estate industry managed to come out unscathed. In some states, the government and banks offered subsidies and reduced interest rates for home loans, thereby encouraging people to buy property. The property prices since Covid the second wave have been tending flat, and this is why many people think a crash might be around the corner. I dealt with many potential customers who used to inquire about property prices and expected them to go down by 2022.
Covid-19’s impact on Property prices
The main trend being observed concerning Delhi flat price is that the prices are consistent on the surface. But, the last few months have seen a gradual decrease in properties being sold, and buyers are waiting for the property prices to crash once the third wave of the pandemic hits India. The industry has thus come to a phase where the prices may consolidate for a while before the start of the downward trend.
Future Impact of Property prices because of Covid
Property experts and brokers are expecting a sharp drop in prices due to few main reasons. One reason is connected to the fact that many IT sectors are open to remote working. The real impact of Property prices of Covid will be because of lesser commercial zones and demand for office space in urban India. If the demand for commercial spaces starts dropping, so will migration; this will lead to a property prices crash. There is a possibility of stagnation in residential properties demand, resulting in sellers and developers offering a heavy discount on prime land. The property price Covid-19 impact is still speculative at this point, but if the cases rise rapidly, a crash in property prices will increase exponentially.