At the beginning of this year, after a decade of weak growth, Mohali’s developers were desperate for a miracle and hoped for an improvement in the real estate market. But that was before Covida-19 escaped.
With more than two months in prison, medical and economic insecurity in all areas of life, buying a house is no longer a priority for people.
As a result, demand has reached a new low, as real estate prices have fallen by at least 10% since the beginning of the year, explains Tejinder Singh Punia, former president of the Mohali Real Estate Consultants Association.
Mohali, particularly the peripheral districts of Zirakpur, Harar and New Chandigarh (Mulanpur), has been a centre of urban development in the recent past. Since last year, when GMADA (Greater Moghali Area Development Authority) was responsible for the IT City and Aero City projects, Airport Road has also become a leading real estate destination.
THE PANDEMIC BLUES
People lost their jobs, the education sector was closed and the hospitality industry was hit hard. People don’t have money to invest in real estate. Only those who were on the market before the pandemic were active again, Punia said.
The Covid 19 pandemic hit house buyers. Without income generation, the epidemic has also severely restricted the ability of entrepreneurs to build up new stocks. It won’t be easy for many of them to carry out old projects now, says LC Mittal, director of the Motia Group.
Unlike many projects started last year, there will probably be no actions this year. Building owners will focus on delivery, as products that are ready to move are becoming increasingly important. In fact, we are not evaluating many new launches in the coming years, says Amit Mittal, director of the Green Lotus Group.
Crispy liquids, rising costs of building materials and the migration of migrant workers from the state are reducing supply. Entrepreneurs lost between 50 and 100 percent of their migrant workers because interstate transportation was allowed. Although the workers want to come back now, it will take some time before the construction schedule is normalized, according to Amit.
In a region where delays in housing projects are endemic, buyers do not expect delivery in the near future. Even before the pandemic it took time to own the land, and now the builders can justify the delay because of Covida-19, said a buyer of a new housing complex in Chandigarh who asked for anonymity.
Moreover, due to restrictions on free movement between states that have not yet been fully lifted, persons from other states cannot travel from neighbouring countries, in particular from Himachal Pradesh, which has the majority of buyers in the New Chandigarh and Zirakpur regions.
However, builders are optimistic that the situation will change soon, as interest rates on home loans are at their lowest level in almost two decades. They expect the shift from renting to owning a house to increase demand.
The gradual relaxation of the closure measures and the unlocking of measure 1 have opened up the sector to business. Requests from buyers will be received. End users are now only looking for objects that are ready to be moved. There are no investors, said Bhupinder Singh Sabharwal, president of the Mohali Real Estate Consultancy Association.
On the eve of the 19th century. In the first half of the year, banks offered loans for the purchase of housing at over 8%. Today the stakes have dropped below 7%. A further lowering of interest rates is expected, making it cheaper to buy a house. For people living in rental properties in Chandigar and Panchkul, it would make sense to pay the EMI home loan instead of the monthly rent. Real estate developers ready to move in are on the front line, says Prateek Mittal, CEO of the Sushma Group.
The uncertainty created by the pandemic will encourage people to choose rental housing, especially since many people are now working from home, he adds.
Tanu Kashyap, Chief Administrator of GMADA, is also committed to promoting activities in this sector. Since the Covida 19 pandemic and its location, we have paid a lot of attention to the requirements of the different players in the industry. The government of Punjab has already announced many concessions and incentives for the industry. There will also be other legislative and policy changes, which will be announced in due course. In the near future, GMADA will also offer real estate to stimulate commercial activity in this sector.
NOT THE USUAL
The view of the house also changes. For example, building owners give buyers the opportunity to visit offices and project locations by appointment. Buyers are allowed in, but they now have to wait longer because of the social aloof standards that only allow a limited number of people to gather in the office, Amit said.
The need for spacious and independent living after Kovida-19 also stimulates demand in new segments. It should be noted that we are increasingly receiving requests to purchase land for the construction of farms that could make organic farming possible. Land prices have already fallen by at least 20 percent, Punya said.