Siddhivinayak Groups

Siddhivinayak, Near Golibar
Maidan, M.G. Road Extension,
Camp, Pune - 411001

Impact of Covid-19 on Residential real estate market | Buy office spaces in Pimple Saudagar | Buy 2 bhk in Talegaon

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Short-term perspective:

• It is obvious from the residential market that decisions concerning buying apartments or taking mortgages are now being postponed. To a certain degree, there is insecurity regarding the future, as people are now considering possible future developments.

• In terms of prices, it is still not possible to see any changes. That also applies to rents; it is too soon for that. But it is probable that the price level will freeze at the current level for some time. Further development largely depends on containing the pandemic and the duration of the emergency measures. However, we do not expect any substantial drop in prices. Due to the permit granting process, there have been relatively few apartments in relation to the previous economic development before the coronavirus outbreak. The prices of apartments did not experience any substantial drop in the previous crisis either. Developers will probably limit the offer rather than selling at a loss, and there will be fewer incentives to support sale.

• Several thousands of investment apartments from the short-term accommodation platforms may enter the selling and rental markets. However, although these flats may be offered at lower prices in order to cover the loss from tourism, they will not have any considerable influence on the market. The offers will probably be made for months rather than years and most owners will return to short-term accommodation after the restoration of tourism.

• The key question is how the development companies will react to the situation. The scenario from the last crisis should not be repeated; the preparation of development projects should not stop. The state will also play an important role. There is speculation about possible assistance to the market – e.g. abolition of the property transfer tax. However, the tax does not apply to first sales and it will not affect new flats. The abolition of the deduction of mortgage interest from the tax base may, on the contrary, have a negative impact on the primary market of new apartments.

Long-term perspective:

• It can be assumed that the long-term prices of apartments will continue to grow despite the potential short fluctuation. They are driven by urbanisation, i.e. people moving into towns, and this trend will get stronger because of the growing digital economy.

• Due to the decrease in interest rates, we can expect another period of "cheap money" for housing financing. At the same time, the importance of rental housing will increase and this situation will help its development. It would be advisable for the state to consider targeted support of rental housing by adjusting the legislative and tax conditions.

Our ongoing residential projects -

Vision City
Vision Ace

For project details -
Call: +91 99235 97855 | www.sgworld.in

Courtesy: Deloitte 

Impact of Covid-19 on Office Real Estate Market | ...

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