Impact of corona virus has been hazardous. China was widely COVID positive in December 2019, India was positive by March 2020. That is when the Prime minister announced nationwide lockdown. However, the lockdown was an effective decision without a doubt, if we consider the aspect of the health of the people, but it affected numerous businesses, jobs, etc. Covid-19 has a serious impact on the real estate business. This crisis is the third, in real estate post Demonetization and Real estate act, 2016.
The construction of hundreds of houses is on a halt. Initially, the construction is on a halt due to strict lockdown. Therefore, laborers who were working in these construction sites are back to their hometown as they were jobless. Another reason for the halt of construction is that building materials were from China. Materials imported from China are Iron and Steel, Technical construction elements, plastic and fiber elements, solar panels etcetera. China is the largest producer of steel with a total production of 928.38 million tons, India is the second-largest producer with 106 MT. The adverse impact of Corona virus is visible in housing sales in the last quarter of the previous fiscal year as March is the most important month.
In January-March 2020, housing sales fell in 9 major residential markets. Despite new schemes, no buyer is stepping up to buy a property. One example would be that the government has reduced GST to 1% on property. People are still not buying houses. The real estate market was at an all-time low, the festive season (October-December) did not see a rise in the sale of property in 2019. COVID- 19 hit at the worst time for the real estate
market. To sum it up shortly, Corona virus has affected the real estate market in 3 ways: Shortage of Labour, financial reduction, and decline in demand.