In the dire scenario of the global Covid-19 Pandemic triggered by the pernicious spread of the deadly virus, many home buyers are in a quandary how to go about the deal in the light of restrictions and social distancing. The issue is how to buy real estate online without visiting properties? There aren’t many who can address the issue with elan.
Asset Buying Opportunities in Residential Segment
Following fallouts of the Pandemic on real estate are:
- In today’s anguish and despair generated by uncertainties and wide-scale flummoxing of the populace brought about by the unprecedented pandemic (Covid-19 Pandemic) that is rippling across the globe.
- The mood is touching the bottom as regards acquiring properties.
- There is unequal and unjust strife between life and livelihood.
- There are only a few who are sailing on unscathed and safe due to their huge savings from the past and unassailable jobs or businesses they are engaged in.
- This minuscule segment only can think of buying residential or Commercial Properties for making a speculative profit when the days will be sunny again or to take advantage of the properties on offer that goes a-begging.
- The crisis has brought on unique possibilities.
- There are enviable opportunities available in the residential segment together within the hospitality arena even as there is storm in the teacup over how Real estate in India to realign post-COVID-19 Pandemic crisis because a majority is quite myopic and hugely disgruntled by the way things are unfolding themselves.
- For them, the very survival is at stake because most of them have turned cynical and wary. After all, there is no straight and comprehensive answer or solution coming from any quarter.
- The answer to the question of what effect does COVID-19 Pandemic have on world real estate is beyond their ken. They are scurrying back to cover their backyard and they have neither knowledge nor any enthusiasm to visualize the world order.
Distressed Asset Transaction-Reasons and Current Situation
- The recent liquidity inflows into the market since 2019 has witnessed distressed asset trade transactions.
- According to the experts, the opportunity lies in logistics and data centres besides in core commercial office assets.
- The distressed assets in the hospitality and retail space are attractive according to insiders’ view.
- Opportunistic asset trade transactions are on the anvil which is expected to gain momentum in a coming couple of years.
- Distressed assets in hospitality and retail space offer attractive prices.
- There are other opportunistic investments for the buyers such as the acquisition of completed residential projects.
- On the other hand, a slump in the oil prices is likely to bring about benefits to the economy if there is continued current account deficit, lower inflation and lower fiscal deficit.
- Real estate sector has been severely dented by the pandemic(Covid-19 Pandemic).
- The construction has come to a screeching stop and construction work is yet to resume in full flow causing an anxious lot of developers to go down the depressing lanes.
- Lockdown is easing in few pockets giving little sparks of hope of sales picking up.
- The pandemic has confined people indoors in their apartments where some feel it claustrophobic without much space, any patch of blue or green spaces.
- People, especially the millennials are looking for homes of their own and the general buying sentiment is goaded by cheaper home loan interest rates.
- There is perceived security attached with owning a physical asset and this has resulted in an upswing mood in going for the buy.
- Millennials’ sentiment is also driven by the prevailing uncertain situation, volatility in the stock market and the uncertainties in the financial sector.
- It is said that positive overtures from the government in the area of home loan interest and relaxation of the setting off the loss from house property will push many buyers towards making purchase decisions.
- Tenants are facing a situation too because the landlords are trying to sell their property and so, they want their premises vacated.
- They are now mulling over owning a property and for them, this is the hight time they went ahead with their callings.
Real Estate Going Online during COVID 19
The realty sector is going online and online sale is gaining traction even as in some pockets the online sale is picking considerable pace. Online sale is also a fit during the era of social distancing and restrictions in movements. Virtual property tours are seeing the light of the day and there is an easy payment option which many buyers are settling for after having completed a virtual tour of the sites of properties. The video conferencing facility, speedy processing, low housing loan rates and extension of PMAY Scheme are the drivers for the sale of property in the changed scenario of today. In many metros like Mumbai, the property prices have witnessed a windfall for the buyers with the prices plummeting by 25% markdown compared to last year. This happens to be one of the biggest declines ever.
So, this is a buyer’s market. The developers are willing to go any length to see the sales process through. There is a complete deadlock, prices are crashing down and now it’s open to consumers to make their hay as long as the sun shines on them.
