COVID-19 has caused a global shutdown, domestic and foreign markets alike, have taken a big hit. As countries proceeded to seal their international borders, all import and export activities have ceased. Airlines operating on international routes have been blocked too. World's largest democracy is at a total standstill.

What does this lockdown mean for Businesses?

1. Loss of Revenue

2. Loss of capital

3. Reduced Demand

4. Limited Output

As the country is in lockdown and no business exchange (Import and Export) is allowed. There is a sharp decline in the availability of resources. Employees, too, are either working in a reduced capacity or at paid leaves. It's a bad situation.

The Scene in the Real Estate Sector

Real Estate market has suffered a slowdown due to the trade restrictions and citizen quarantine in place. Some sectors of real estate have managed to keep their heads above the water. But some, have been dragged to their knees, like

1. Hotel

2. Restaurants

3. Bars/Pubs and other Entertainment retail.

4. Retail and housing (Praticulary Luxury Housing)

5. Commercial Real Estate

Unavailability of raw materials and manpower has led to stalled projects, Site visits have stopped, and the lead conversion rates are falling. Customers are utilizing this free time in digital scouting of projects, virtual tours, etc. Mortgage rates have fallen to record lows.

What does the future hold?

It is quite early to comment on the direction of the market. Still, it's fair to expect a bearish trend with builders making an easy pass over new projects, massive layoffs of workers may send the sector in a downward economic spiral.

Though sellers aren't delisting their properties from the market, there has been a gradual shift of attitude among the seller community. Cancellation of open houses, postponing of site visits, etc.

From the buyer's end, the virus has failed to be a major deal-breaker, but the plunging stock markets have gotten the buyers in worry, discouraging them from closing the deals.

Real estate will be on a bullish outlook as soon as the stock market recovers from the recent price correction, workers reporting back for work, and import-export business resuming.

Good News for New Homebuyers

The deadline for Income Tax Return has been extended to June 30th, 2020. Interest Rate for late IT return filing has been reduced to 9% from the present 12%.

This is the perfect opportunity for potential homebuyers to finalize last-minute deals, reaping the benefits of extended ITR dates.

Sources :

1. Cited From National Association Of Realtors Survey Shows How Coronavirus Has Started To Impact The Real Estate Market, published by Tara Mastroeni on Mar 23, 2020,09:28am EDT.

2. Referred From Coronavirus' Impacts On Real Estate: Why You Need To Think Short-Term And Longer-Term, posted by Brad Hunter on Mar 24, 2020,03:20pm EDT.

3. Cited From Last date for filing ITR for FY 2018-19 extended but late filing fee stays at Rs 10,000, by Sunil Dhawan, Updated: March 24, 2020, at 6:19:21 PM.