Corona slowing the pace of the housing market

The sudden Coronavirus outbreak, which threatens to drastically impact global economic growth as countries go into nationwide lock-downs to contain the spread, would wipe off any chances of value appreciation in the property market. It is indicated that nine major residential markets in India registered only negligible price growth in the past half a decade amid consumer sentiment hitting a new low.

Adding on, the RBI is expected to reduce the repo rate, consequently making borrowing cheaper for homebuyers − home loan interest rates are already as low as 8%. The further reduction would act as a booster for buyers to invest in property at a cost advantage once clarity on the impact of COVID-19 on the job market is achieved. While the government has already extended the benefits offered under Section 80EEA till March 2021, it might also consider extending it further in order to give a boost to first-time homebuyers.

Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing, and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “This COVID-19 outbreak impacted the real estate market overall. But we can hope that the government may launch the measures to make it more beneficial for buyers to invest in the real estate sector. Also, RBI can help by reducing the rate to support the economy, making borrowing cheaper for home-buyers.

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