TOP 4 EXPECTED TRENDS POST THE COVID-19 LOCKDOWN:

Suspension of trade due to the restrictions in place in the backdrop of COVID-19 pandemic has started to exhibit its effects worldwide. Federal agencies rushed to the scene to fix the damage sustained by the national economies. Measures were taken to push fresh liquidity in markets, temporary suspension of EMIs, relief packages, Universal Basic Income (UBI), advance payment of pensions et cetera.

Unorganized Sectors have a tale of their own, a major chunk of the workforce comprises of daily wage labourers, depending on cash payments. As construction activities have come to an abrupt halt, their only source of income is dead. Various state governments have taken steps of paying a relief sum of money to the registered daily wage laborer.

Here are the Top 4 Expected Trends Post the Covid-19 Lockdown:

1. Deflation and Lower Property Prices

Expected slash in inflation rates will send out profit in the pockets of customers, cheaper goods and commodities. Expect to see reduced asking prices on both commercial and residential properties. Customers with savings can highly profit as the negotiation powers will be in their hands

2. Cash will be the King

With RBI and similar foreign institutes rushing in to promote liquidity in markets, cash will dominate the trade in times to come.

3. Cut in Mortgage Rates: Lower-Interest Rates on Home Loans

Individuals will have a upper hand in negotiating favorable interest rates on different credit options. Home loans and business loans will top the list with lowest expected interest rates.

What does this mean?

Owning a house will be cheaper. The added benefit of repaying lesser amounts in interest money will make your dream of financing your house more affordable.

4. Digital Real Estate

Realtors have been rushing to acquire technology which will allow them to host virtual tours of their properties to customers. The pandemic has accelerated the use of technology in the sector with more and more agencies adopting virtual tours, 3-D scanning and other technology to keep the business going in these lockdown days.

No economy is recession proof, there will be a definitive slowdown, but the preventive measures will dictate how quickly the market rehabilitates itself. Enough supply of liquidity and corrective measures in place will ensure a cap on the bearish trends. Realtors need to instill confidence in the customers post resuming of services and we expect the Indian market to ride the high charts again.

As a customer, utilize this time of quarantine at home for online scouting and shortlisting of properties.

Have a plan of investing in residential or commercial properties? Contact Beegru Real Estate Advisory

Sources :

1. Referred from How India Can Reboot Its Virus-hit Economy, by Vivek Kaul - https://www.livemint.com/news/india/how-india-can-reboot-its-virus-hit-economy-11585068400807.html

2. Referred from, Coronavirus a Llong term look at Economic, https://www.bloomberg.com/opinion/articles/2020-03-20/coronavirus-a-long-term-look-at-economies-and-markets

3. Referred from Real Estate Market Adjusts To New Normal Of Covid-19, by Matt Olberding - https://journalstar.com/business/local/real-estate-market-adjusts-to-new-normal-of-covid-19/article_15725ca4-b025-55b2-b518-4494ab1d007e.html