Lockdown hits Pune Property Market: Impact Study

Lockdown hits Pune Property Market: Impact Study

Pune Real Estate

When one person spends, then another man earns his livelihood, but the entire cycle of consumption is faltering in the middle of a highly necessary nationwide lockdown and successive implementation of strict vigil in view of the Covid-19 pandemic.

Mr. Shivraj Hegde Director at KC & Hegde Property consultant from Pune reports that there is staggering fall witnessed with client interest over the last 2 weeks on any real estate transactions. Maharashtra as a state is battling sever fatalities and increase in people being quarantined and reports of positive covid-19 cases are on the rise.

However the hope is that the real estate market should gain momentum once things get back to normal. Safety of everyone is at the highest importance and government is working round the clock to bring the situation under control.

The lockdown has hit real estate Builders, sellers, suppliers of raw materials; construction equipment and the workforce attached to the industry have also been hit. It is a global pandemic and will carry both short and long terms impacts on industry. Both buyers and sellers of residential units have gone down tremendously. The summer season usually sees lot of spike due to vacations and Gudi Padwa festival but this time the scene is totally different.

Real estate transactions and deals involve lots of physical interactions and personal meetings, site visits, legal document exchanges, all this become impossible due to the curb on movement outside peoples respective homes.

From the financial perspective RBI and govt. have worked together on passing on loan moratorium to consumers for 3 months up to May end. Fiscal year end has been relaxed and extended up to 30th June 2020. Many real estate leases closing in March, April have been given extension for 2 to 3 months.

Social distancing has hit the rent housing sector as well, with societies putting additional surveillance and caution on outsider’s leads to difficult times. Most corporates in IT/ITES have given work from home for employees and may continue to do so for another month or so. This also adds to negative sentiments with office space demand.

Malls and retails shops are closed since first week of March, retail demand in Pune was anyways sluggish before lockdown and would further dent the chances of major deals in office and retail space. Mumbai and Pune have seen rise in positive cases and it’s very unlikely that the lockdown would end soon, in such circumstances property rates may also correct when the buying cycle re-opens.

Health is of primary importance and under these circumstances wishes every one stays home, stays safe and stick to government directives. Positivity brings in big change with every dawn the real estate market in Pune and Mumbai will also boom with higher confidence and vigor.

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