Gulte News
The Corona Virus pandemic has affected the real estate business to the core. The rental industry witnessed a nosedive dip in its revenues as scores of migrants, employees, labour chose to return to their hometowns. Businesses have also been affected due to lack of support staff and workers.
This resulted in vacant houses, offices and shops. All this led to the sprung up of to-let boards everywhere – houses, shops, office spaces etc. With this, the majority of property owners are in tough situations as their revenues took hit and they need to pay EMIs to the banks.
The rental values of properties have also come down. Several property owners are ready to cut down the rentals for tenants to occupy.
As per reports, the inquiries for rental properties (houses, shops and offices) in Hyderabad has come down by a staggering 70 percent. To-let boards are seen everywhere across the city. The situation is no different in Mumbai, Pune, Ahmedabad, Delhi, Chennai, Bangalore, Kochi, Kolkata.
Veering off to the purchase of houses, leading real-estate agencies declare that there is a dip of about 79 percent compared to the last year.
In the first quarter (Q1) of 2020 i.e April-June, only 18,038 houses were sold across the leading cities in the country. This is less by 79 percent compared to previous year, said Prop Tiger.
In Hyderabad, 8122 houses were sold in Q1 of 2019, whereas Q1 2020 witnessed only a sale of 1099 houses i.e dip in 86 percent. While Mumbai saw a dip of 85 percent in sales, Ahmedabad saw 83 percent dip, NCR Delhi saw decrease in 81 percent and 73 percent dip in sales in Bangalore.
In the last six months of 2020 i.e from Jan to June, the sales of houses in Hyderabad city decreased by 62 percent. A total of 6653 units were sold in the six months. Market uncertainty, economic crisis looming large, loss of employment and jobs, salary cuts, Covid pandemic are the reasons for the decrease in sales and rentals.
However, the situation isn’t all bleak and gloom. Real-estate experts are hoping that the situation may get better in the second-half of 2020 as the vaccine for Covid likely to become reality soon.
