The first and foremost thing to do while buying and selling a property in times of coronavirus is to ensure safety and take all precautions while inspecting the property.
Investment in property has always been marked with uncertainty. The fear of unknown looms large in case of real estate investment. It is more so today in times of coronavirus where the normal life itself seems far away.
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Prevalent situation:
- With coronavirus around, job security has become a significant factor for buyers. One would prefer a loan to buy a property only if the regular flow of income is ensured. Even banks will hesitate to provide a loan if the current job does not depict the steady future flow of income and repayment is doubtful.
- Buyers are avoiding site visits and postponing the decision to make real estate investment.
- The property prices have not fallen as expected due to Coronavirus. Prices have remained stagnant as builders have maintained the prices although there has been a fall in demand. There is hope for revival. The low price is negotiated on case to case basis in places like Mumbai, Gurgaon.
- The falling prices favour buyers. Those who have finances available with them can buy property now. On the other hand, sellers may not like to sell at this time. For them, wait and watch is the best policy. However, some sellers may opt to reduce prices to get through the sale.
- Coronavirus has brought to halt the construction services as well as sales. For the ongoing projects, the buyers doubt if the developers would be able to meet the deadlines. The developers have reduced prices to some extent, depending on the profit margins. There are attractive offers like flexible payment schedules. However, the same is not helping much, as jobs have been hit hard. Consumer sentiments are playing a more significant role than the prices.
- Coronavirus has led to work from home on a large scale. The demand for office space has reduced. It has impacted the buying of property for office stations at least for present times. It can even affect the future commercial real estate deals as many companies are thinking of reducing their infrastructural cost.
- The measures taken by the government to inject the liquidity and simultaneously the policy of the bank imposing moratorium on loan repayment will help the developers and buyers in cash flows.
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Consumer sentiments and Property price both have a role to play. If buying and selling a property is need driven, an individual will go ahead although carefully. If buying or selling of property is for investment purposes, one has to analyze various factors which influence the decision process even during a pandemic like Corona.
During this pandemic the following factors have to be kept in mind:
- the current price of a property
- current interest rates
- bank policies for advancing loan
- expected growth of the property market
- revival of economy
- Governmental assurances and policies
- Job security – ensuring a regular flow of income
Ultimately what will happen in property markets depend upon consumer sentiments, job security and government policies.
As a top legal property management firm, we assist NRIs in property search and help them in all the property solutions. Our real estate services caters exclusively for the NRI investors wanting to buy and sell property during these unprecedented times. Contact NRI legal services for free legal advice on matters of sale and purchase of property.
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We provide an extensive range of services for residential, agriculture and commercial property’s sale and purchase. Even in these COVID times, our legal firm, with all the precautions, is trying to assist the Indians settled abroad to get their property related issues resolved to their benefit.
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