REAL ESTATE SURVIVAL IN THE TIME OF PANDEMIC

As we are surviving through a virus called COVID-19, not just the health but it has been affecting each and every aspect of the people's life. In terms of health we atleast have some of the precautions for our defense from it but in terms of other aspects specially buisness, we don't even have precautions, all we are left with is finding a cure. One among the badly affected businesses is the real estate business. 

Impacts on the indian real estate business:

As the whole Indian economy is in crisis, the most anticipated result of it in real estate sector is delayed investment decisions, specially from the eastern countries. However, the actual possible impact is still uncertain as the COVID-19 situation remains volatile. 

As per the researchers, the impacts that we may face are:

1. If the COVID-19 stays longer than expected, the commercial real estate may face less investments as it is already a slow mover. 

2. In the current situation, investors are more likely to shift their investment into something more stable such as a bond market. 

3. According to UN, india is at risk of trade loss of about 2,500 crores as most of the real  estate investment in India came from Singapore, China and Hongkong in 2019.

4. As the export from China will be at pause, the cheaper supply will be hindered and this will affect the profit margin of the real estate developers. 

5. The recent crash in the stock market in India is another sign that suggests the reduce  investment in the real estate sector. 

Measure taken by Indian government to improve the situation:

In order to improve the economy and the stressed real estate sector the government has announced variety of financial packages, schemes and new ideas to formulate within the country. 

1. Under "Atmanirbhar Bharat", government announced a financial package of ₹200 crores restricted to the local markets compulsorily. 

2. RBI has provided special fund of 30,000 crores for non-banking finance companies and Housing finance companies generating a wave of relief to the real estate sector. 

3. Extention of loan repayment period and reduced repo rate by RBI and extention if loan compliance for the current financial year has been a hope of light in the construction sector. 

4. Subordinate debt-based scheme, equity support, collateral free automatic loans and revised definition or classification are some measures for MSMEs which will  provide a force to the infrastructure sector as MSMEs supplies various construction materials to them. 

Conclusively, the real estate sector has to hold itself for even worse impact than assumed. As this pandemic is affecting the lives of people the real estate has already facing less investors and property buyers. But with the hope and positivity that as we have overcome many calamities previously we will overcome this too, we must continue our production and innovation and take the full opportunity in the bad times as well till the government finds a measure to stop the spread of this virus.

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