2 Apr 2020, 13:46 — 4 min read
The COVID-19 pandemic has left us all reeling in its wake. The Real Estate sector is no different. The lockdown has slowed down all economical activities and real estate is also facing an adverse impact.
While project delays are expected to delayed, the good news is that real estate players can anticipate a steady invest growth once the situation starts returning to normal, with no significant long term effects.
Not surprisingly, the traffic on online property search websites has dwindled, many online players are coming up with innovative and creative means to reach and engage customers. Using video calls and virtual walkthroughs they are helping customers make purchasing decisions while in the comfort of their homes.
The impact of the breakdown in supply chain did not impact the industry as most companies hold a reasonably strong local inventory. However, as most companies do import some components from China, the prices are expected to go north in all allied industries, thereby eating into the profit margins of real estate developers.
Italy has been a popular choice as the world’s leading supplier of luxury construction, and stone, with a good market for top quality furniture. This is expected to impact the premium segments of the real estate segment. While the industry looks at local Design Suppliers are expected fill in the gap, this may not be a permanent solutions due to the disruptions in supply chain.
The intrinsic domestic demand for housing will remain to be strong and perhaps the price correction due to the epidemic may open an opportunity for buyers to buy properties on a much lower value.
Source: Outlook India | Architectural Digest
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