Impact of Covid 19 on the property market in Delhi
A home has always been a safe place and a safer investment for us. We have always betted our money on the property; an asset which as always seen an upsurge, especially in the past couple decades. The current COVID 19 scenario has elevated the connotation of having a home. Been locked down and no place to go, our need for a personal space has heightened, both practically and psychologically.
With the dwindling world economy and nihilism, the current period might be the best time to invest in a property, even if it seems otherwise in the current fleeting moment. Rising ‘work from home’ culture has taught us the value of comfortable living space. The decrease in home loan from 12 to 5 per cent by the Indian government is a favourable and much-needed change. It’s a lucrative reason to invest in a property that we’ve been meaning to purchase for so long.
The current scenario is also the time for innovation. As we all are leaning towards the digital world, it is the need of the hour for property dealers too. The traditional way of doing things might not work today, but it has given rise to creativity. The virtual tour of the property has become mainstream to accustom the present day scenario. There are a few impediments in the property business that can’t be ignored. The sudden and undecided lockdown a few months ago led to labourers moving to their hometowns. Even with life getting back to normal, there is an acute shortage of labourers. The ongoing disruption with China has led to a shortage of construction materials like iron, steel, plastic, etc which are integral to the building.
Under usual circumstances, the average rental increased from 4 to 8 per cent a year. Though there is an unlikely change in the rental space as yet, the correction in the price of under-construction properties might work in investor’s favour. For those who wish to own a house in the city and are not rushing against time, this upheaval could be a suitable time to invest.
Other factors that might affect could be seller’s or builder’s financial health at the moment, increase in WFH opportunities even when the pandemic is over or the psychological shift in perspective that the COVID 19 has caused.