Coronavirus – is it affecting on Pune’s Real Estate?
The rapid spread of Coronavirus in all parts of the world has caused the lockdown in many countries. The sudden break down of this global pandemic has ultimately caused the slowdown of most of the economic activities in all the economies of the world. People are staying home and avoiding going to any places where the chances of getting an infection from COVID19 are generally high. No doubt, because of coronavirus, almost every sector, whether it is import-export, entertainment, transportation business, real estate, corporate sectors, etc., all are adversely affected. The Indian government has also announced the complete lockdown of India, the world’s third-largest growing economy for 21 days. This led to the stoppage of any economic activities that are responsible in generating the revenue. That has severely affected the gross domestic product (GDP) of India and has a lasting effect on the economy of the country.
Impact of COVID19 on the real estate in Pune
Pune is the second largest and fastest developing city of Maharashtra. The city is well known for its stable and most rewarding real estate market. Though the real estate in Pune has seen many temporary setbacks in the past few years, it is resilient and quickly gets back to its original place. With the outbreak of the global pandemic of coronavirus, like any other sector in India, the real estate in Pune has been suffering too. Hopefully, once the lockdown is lifted, the real estate market will gain its prosperity again.
The adverse impact of Coronavirus / COVID19 on the real estate market is-
Lack of availability of the construction material because of the lockdown
Though India is the second-largest producer of steel in the world but to meet all its requirements, especially in the construction segment, it also imports a large number of steel products from China. It also imports other materials that are used in the building of properties from China. Since the virus has spread initially from Wuhan China, this led to the shutdown of their exporting industries too. It might prove a blessing in disguise later, as it will push India to produce more steel and other products on its own to reduce the cost. Still, at the moment, the lack of these products has delayed the construction of some flats and other properties not just in Pune but all over India.
Complete lockdown in the country has led to the delaying of the many crucial housing projects
The coronavirus is an infectious disease that is quickly spreading with coming in contact with the infected individual. To stop the spread of COVID19 at the community level, people are staying at home and practicing self-quarantine. After the lockdown in India, either people are working from home or not working at all. It not only reduced the demand for renting office space but also stopped the construction of many significant housing projects resulting in delaying.
Lockdown has temporarily declined the booking of the apartments thus decreased the buying and selling of properties
Before striking any deal or buying any flats and apartments, a close inspection of the property is essential. Safety is the priority, and therefore people are avoiding going out to protect themselves from catching the infection. With the lack of construction material and complete lockdown, many construction projects have been entirely shut for the time being until any further update from the Government. It is to be kept in mind that the market will come back to its normal pace once the infection gets in control.
The real estate in Pune has seen many setbacks in the last few years, but those temporary setbacks didn’t affect the buying and selling property business of the city in the long run. Though it is suffering from a hiccup cuurently, it will soon come back to its normal pace, along with a stable market. Real Estate has always been the safer investment option than any other investment markets such as gold and stock.