Real Estate after Corona Pandemic

Real Estate after Corona Pandemic

Corona Pandemic has given a big jolt to the economy of World as a whole. The production units are shut down and offices are closed. people are locked in their houses. The economic activities are at halt. This has started showing adverse effects on jobs and earnings. Many employees have lost their jobs. Some are in the job but at lower payouts. 

The infrastructure sector is also amongst worst affected. No development work is going on. Biggest threat before everyone is of their own survival. Majority of people are losing their purchasing power. People will decrease consumption, which will adversely affect the demand. This will lead to lower production. The cumulative effect of this gamut will be lowering the surplus in the hands of people. This will ultimately reduce the demand of Property for some time.

More companies are offering "Work from home" to their employees. It will reduce their operating cost. The employees will also welcome this move as their travel time and exertion is reducing. The Government and local administration will also promote such type of work culture because load on infrastructure and public transport system will reduce. This new phenomenon will lower the demand of office spaces in near future. 

A price correction is evident in near future to the extent of 10-20% in residential sector and 20-30% in commercial sector/Office Spaces. At the same time we can not overlook a fact that every disaster end with new opportunities. Demand for spacious houses, remote located houses, newer designed houses will increase. The migration of companies from China will also boom the market, where these companies land.