Revival of the Indian real estate sector, one of the largest employment generators, seems to have hit another brickwall in the wake of the panic generated by the spreading coronavirus, the rising death toll and an economy in temporary lockdown. Many had been looking forward to 2020 heralding the return of buyers for commercial and housing properties, given the government incentives, particularly for affordable housing segment, and the recent lowering of interest rates. In addition, the recent turmoil witnessed in the financial markets had raised hopes that investors would look at real estate as a safer investment option, considering that property prices have dipped in many cities.
“One could previously have surmised that the downfall in the stock market would have benefited real estate. However, considering the present scenario and its inherent challenges, investors will largely stay away from this sector as well,” states Anuj Puri, chairman, Anarock Property Consultants. He feels the bloodshed in the financial markets will further dampen homebuyers’ sentiments for investing in cost-intensive real estate. As such, the wait-and-watch scenario will get extended, affecting housing sales in the coming quarter.