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AFFORDABLE HOUSING SEGMENT IN ALL LIKELIHOOD WILL NOT SEE ANY DIP

The pandemic has adversely impacted all the sectors of the economy including real estate. Sales and construction are impacted and at standstill as per government orders. This situation may remain the same until the lockdown is in effect but will have a lasting effect on the economy as project deliveries shall be delayed. However, since real estate is the only long term and stable investment asset compared to the other volatile options, steady investment growth is anticipated once things get back to normal.

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As of now, the sales are impacted as draws cannot be held but it is a temporary phenomenon especially for affordable housing Gurgaon where the demand is much higher than the supply. Once things calm down, the buyers are likely to make decisions faster and thus helping this segment get over the Corona effect. In any case, the second half of March and April are generally not great from a sales perspective. For affordable housing Gurgaon, which made approximately 64 per cent of the new supply in the first quarter of 2020, the concerning factor is the halt in construction activity. The segment relies heavily on timely completion of projects and any halt can lead to a delay up to six months. The situation is concerning as most of the buyers of affordable segments run on very tight budgets and cannot afford delays where they have to pay rents as well as the EMIs.

Affordable housing segment in all likelihood will not see any dip in sentiment. In all probability, this cool-down period will help the buyers of affordable housing to spend time in analysing the property and make an informed decision once the lockdown is lifted.

In conclusion, we can say that the affordable segment developers are concerned about the delays and the government help can aid the real estate sector in tough times. for now  focus has to use the latest technology to communicate with buyers and avoid confusions providing them all the information needed.  

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