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Nationwide lockdown to impact housing sales, say realtors

Last updated on March 26, 2020


New Delhi: The nationwide lockdown for subsequent 21 days amid unfold of coronavirus will severely impact residential actual property as housing sales have virtually come to a standstill, which might have an effect on builders’ money stream and lead to default in reimbursement of financial institution loans, in accordance to property builders and consultants. Market specialists additionally concern that present clients would possibly delay funds of their instalments to builders, who in flip might default in reimbursement of principal and curiosity on financial institution loans.
Developers could maintain on to condo charges, however costs within the secondary or resale market might fall, they mentioned.

To mitigate the impact, builders and brokers are adopting digital advertising instruments to attain out to potential dwelling consumers.

When contacted, realtors’ apex physique CREDAI President Satish Magar mentioned the lockdown will drastically impact the gross sales transactions and new launches can be deferred.

“There are chances of many customers defaulting on their instalments because of tough economic conditions. These will have a cascading effect on developers-who will be battling with servicing their debts as cash inflows will be strained,” he added.

NAREDCO President Niranjan Hiranandani mentioned general gross sales numbers have dropped.

The lockdown has opened up alternatives for digital platforms for gross sales and advertising actions, as additionally funds, he mentioned.

Bengaluru-based Puravankara MD Ashish R. Puravankara mentioned: “At this point, no property registrations are taking place and all new project launches are postponed”.

As all development websites are below lockdown, there can be a delay in completion main to a rise within the curiosity value, he added.

“Additionally the lockdown could hamper the cash flow cycle of the developers’ balance sheets and could result in bank defaults”, mentioned Ashish.

Anarock Chairman Anuj Puri mentioned the lockdown can have a unfavourable impact on housing gross sales and new launches in the course of the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi.

“This is a time when AV technology to enable virtual site visits and walk-throughs will gain increased relevance and use,” he mentioned.

Anshuman Magazine, Chairman & CEO (India, South East Asia, Middle East & Africa), CBRE mentioned: “It is too early to comment on the impact of Covid 19 given that the situation is still evolving … We are confident that once the situation normalises, sales will resume”.

Dhruv Agarwala, Group CEO, Housing.com and PropTiger.com, mentioned the lockdown can have an adversarial impact on actual property.

“We too have begun to see a dip in traffic on all our platforms,” he mentioned, including that the corporate has come out with modern schemes for builders and brokers to promote on its web sites.

Siva Krishnan, MD (Residential Services and Developer Solutions), JLL India mentioned the lockdown will certainly have an impact on housing gross sales, however briefly.

Shalin Raina, MD- Residential Services, Cushman and Wakefield, mentioned the entire lockdown means lesser gross sales since many of the transaction closures occur solely after website visits.

Housing costs have corrected by 15-20 per cent in the previous couple of years and additional decline is unlikely, Raina mentioned.

Savills India CEO Anurag Mathur mentioned: “Housing sales may see a sharp dip for at least the next one quarter… Even if the situation settles down quickly, it may take time for homebuyers to come back to the market.”

“Price elasticity is not a concern under the circumstances since the transaction activity is at a standstill anyway. Depending upon the duration and depth of the current crisis, prices may or may not see a downward movement,” he mentioned.

Omaxe CEO Mohit Goel mentioned the restoration within the housing section has been halted.

“As for real estate prices, there will be no change as transactions are not taking place. The prices will resume at the level it has halted,” he mentioned.

Gaurs’ MD Manoj Gaur mentioned, “The sales are impacted, but it is temporary.”

Supertech Chairman R Ok Arora mentioned, “housing sales have completely gone”. There are not any consumers out there.

Pune-based Gera Developments MD Rohit Gera mentioned, “Real estate sales are at a standstill. So far there has not been any reduction or crash in prices of homes.”

“In the absence of some relief from the government, more real estate developers with debt obligations will default on account of the stop in cash flows thereby impacting the economy and jobs,” he added.

M3M Director Pankaj Bansal mentioned housing gross sales would get impacted throughout this era of disaster, however it might additionally create a pent up demand as soon as issues get again to regular.

Experion Developers Senior ED Ananta Singh Raghuvanshi mentioned, “Sales closures are temporarily getting pushed ahead. Prices won’t change.”

Raheja Developers ED Nayan Raheja mentioned the gross sales and development are badly impacted and at standstill.

ABA Corp Director Amit Modi mentioned the gross sales velocity has undoubtedly been gradual.

Gulshan Homz Director Deepak Kapoor mentioned, “People are deferring property buying decisions.”

PropEquity MD Samir Jasuja mentioned: “For the real estate sector, this can be a robust scenario because it was simply discovering inexperienced shoots of restoration. We imagine for the following few weeks, we is not going to see any new transactions for housing gross sales”.

Ambience President (Sales & Marketing) Ankush Kaul mentioned: “Housing sales will be impacted for the next few weeks.”

Ekta World Chairman Ashok Mohanani mentioned the lockdown has affected the enterprise cycle deeply. Wadhwa group, Head – Sales, Marketing Bhasker Jain mentioned the lockdown has impacted gross sales and the corporate is providing cashback on on-line bookings.

Brokerage agency 360 Realtors Ankit Kansal mentioned the actions have come to a standstill after lockdown. Sales had been down by 30-40 per cent in the course of the first three weeks of March.

Investors Clinic Founder Honeyy Katiyal mentioned gross sales could be impacted however not the worth.

Wealth Clinic CMD Amit Raheja mentioned, “It will hamper sales to a large extent, but we expect a good turnaround once the situation returns to normalcy.”

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