Coronavirus has been terrorizing the entire world since the beginning of 2020 and the government had to impose lockdown in both years (2020 and 2021) as a measure to curve the further spread. As a result, everything from people’s lives to the economy got affected. The impact of which was noticeable in the housing sector as well. The housing sector went through a bumpy ride in the first lockdown but in the second, not so much but that is because of the innovation and adaptive nature of the sector. The effect of lockdown on real estate was different both times.
The construction sector was badly affected in the first one, but the housing market didn’t get affected that much in the second one. With virtual property fairs and new investment opportunities, the housing sector tackled various challenges differently. Here is everything you need to know about the effect of the first lockdown vs the effect of the second lockdown on real estate.
During lockdown
From the end of March 2020, a lockdown was imposed across the country to prevent corona infection. This has impacted the real estate business severely. Selling properties were difficult. Although the business got back its pace on a limited scale in May, it took a while for things to pick up their speed again. On the other hand, the picture of the second lockdown starting from April 2021 is different from the first lockdown. Unlike last year, everything didn’t come to a sudden halt this time. It property-related activities did get slowed down during this period.
Construction sector
The construction sector got hit severely in the first lockdown. Workers in all types of industries, including steel, cement and construction, lost their jobs in last year’s lockdown. Small to medium-sized steel mills were on the verge of collapse. Demand for construction materials went down and prices were lower than normal times. However, at the end of last year, the situation gradually did get better. The price of 60-grade steel has gone up to Rs 58,000 to Rs 60,000 per tonne, though steel has been sold at a lower price in the previous year.
Investment opportunities
After the budget for the fiscal year 2020-21, the flats sale has gone up as black money or undisclosed money has been allowed to be invested without question. Furthermore, the reduction in interest rates on bank loans has also positively impacted the housing sector. In this case, the picture of selling flats of different housing companies is different, but there is hope that nothing will stop in such an unexpected time. Since there is an unquestionable opportunity to invest money in the budget, the tendency to send money out of the country is also declining at the same time. On the other hand, investment is in the housing sector. Which is something to mention.
Virtual Property Fair
Property fairs are the lifeblood for most real estate companies. But pandemic and lockdown regulations made it almost impossible for organizers to organize such events in 2020. But thanks to virtual property fairs, organizers were able to arrange property fairs without for people to attend the events physically. Various real estate companies participated in the fair exclusive offers and discounts. And since people could access these events from the comforts of their homes without breaking any safety regulations, virtual property fairs were well received.
Bproperty Online Property Fair
Online property fairs were at the forefront of keeping the real estate sector afloat during the pandemic. Acknowledging this fact, Bproperty, the country’s only property solutions provider has also launched their first-ever online property fair named ‘Bproperty Online Property Fair’ with exclusive projects and over 10,000 available properties. The event was a success and attracted the attention of many people.
Regardless of the effect of lockdown on real estate, the pandemic made it clear that the power of overcoming any obstacle to keep the wheel of the economy afloat is what moves any sector forward. All these activities during both the lockdown were a testament to that.
