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What Is the Condition of Real Estate Before and After COVID-19?

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Regarding various policies such as GST, the Indian economy has been suffering from extreme challenges even before the COVID-19 pandemic hit. However, due to the global crisis of the coronavirus pandemic, every sector, especially the real estate sector, is facing a liquidity crisis. Construction and real estate hold the 2nd position at generating employment.

People were hesitating to invest in real estate as the price of the real estate sector increased. Even though the cost of real estate depends on numerous factors such as the builder, developer, location, and the facility’s specifications, the high charges are setting back lots of potential buyers. Customers only booked real estate upon visiting the site and clarifying the construction process and payment method.

Even though real estate agents are trying their best to improve the real estate market, the pre-Covid and post-Covid challenges make their task hard. Let’s discuss the condition of real estate before and after the pandemic.

Adopting to Online Transactions 

Unlike the other economic sector of India, such as aviation, telecom, or baking, the real estate industry is experiencing a massive phase of consolidation. Nowadays, developers and buyers are focusing on online transactions. Before the COVID-19 pandemic, most deals were made through hard cash. But after the pandemic, the payment method has shifted to digital. Nowadays, maximum transactions in the real estate sector are done through the digital platform. If you want to use digital transactions for your upcoming real estate investment, you should consider checking 2 BHK flats for sale in Mulund East

Impact on the Purchasing Decisions of the Customers 

This is a significant Covid impact on real estate 2022. After the COVID-19 pandemic, many potential home buyers still want to invest in real estate, but only if they receive specific discounts on the price. People who are not in the real estate industry are also considering investing before the real estate industry recovers from the tough times. Middle-class people are focusing more on affordable housing solutions. People searching for luxurious apartments are now focusing on extra bedrooms to turn the space into their office. This will help them with the work-from-home scenario.

Not to mention, COVID-19 has affected the purchasing decision of real estate buyers. Due to the uncertainty of the jobs, many people are thinking twice before investing in the real estate market. Homebuyers are facing problems accumulating the down payment, but they are also worried about the monthly installments.

Policies of RBI

This is another real estate before and after a covid-19 point, you need to know. Due to the weak demand, the Reserve Bank of India is already facing the problem. Not to mention, the bank is thinking of policy cuts by more than 70%. As benchmark rates and home loan rates are interconnected, lower interest rates are a great possibility. The Reserve Bank of India has already decided to extend the length of the moratorium by additional three months. This will help lower the burden of monthly installments for housing loan borrowers and real estate developers. The reduction in the policy rate will also help many people.

Conclusion 

The impact of the coronavirus pandemic is massive on the real estate sector. This is why the Government has taken multiple initiatives to improve the real estate sector. What are your thoughts? Comment below to let us know.

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