‘Real estate prices may drop after Covid-19 lockdown ends’
In addition, the builders have also demanded that the construction workers should be allowed to resume work from April 15 when the lockdown ends.Updated: Apr 09, 2020 19:13 IST
The real estate prices in the city are all set to reduce after the lockdown due to Covid-19 which has paralysed the whole sector according to experts from the industry.
In addition, the builders have also demanded that the construction workers should be allowed to resume work from April 15 when the lockdown ends.
“Realty prices will definitely come down as lots of developers will be desperate to sell their product ,” said Niranjan Hiranandani, president, National Real Estate Development Council (Naredco).
However, he said that the homebuyers will not be eager to buy despite lower prices. “Homebuyer may have a job as well as the money to buy but they will not take the plunge till they get confidence. The government needs to give stimulus to all the sectors so that homebuyers get confidence,” said Hiranandani.
In addition, Naredco has demanded that the workers at the construction sites should be allowed to resume work after the lockdown ends. “We only demand that those workers staying at the construction sites should be allowed to work while maintaining social distance,” he added.
“If we don’t give work to these labourers, they will go to the villages for agricultural work and bringing them will back will be difficult,” he added.
Real estate experts said that even though the prices will reduce, builders will find it difficult to find buyers.
“The post Covid-19 scenario will be challenging as there would be an insecure job market and hence many will postpone their plans. We will see job cuts or salary reduction in many sectors. In addition, the banks will be very cautious while giving loans,” said Pankaj Kapoor, CEO, Liases Foras, a leading real estate research firm.
The real estate sector has been under pressure from the last few years. While in the last few months, things were improving a little bit, the Covid-19 has now devastated the whole sector.