Coronavirus Effects on Real Estate Industry
Coronavirus has affected every aspect of life. This is creating economic primacy. The nature of government’s response to the disease is changing everyday due to which people are experiences uncertainty.
Will Coronavirus effects the real estate sector?
The answer is definitely yes. There are many factors that are effecting on real estate sector. Directly or indirectly we look at them sequentially.
Sale and Purchase is extremely Low
Customer who wants to buy or sell property is getting information through phone or social media but cannot come to office or visit the site. Government is preventing from gatherings due to the increasing threat of corona and that’s right. But because of that fear customer is still implementing on see and wait.
Real Estate Market Trend
Islamabad’s property sector has the highest turnout in March and April. Property Expo was held during those months which meant booking a new project, especially in real estate. There was a lot of activities to seen in the month of March and April (due to Ramadan) in the real estate sector.
As the coronavirus has become a global pandemic so overseas Pakistani’s are also affecting by it. They are seeking information but still waiting for the situation to get better in Pakistan. About thirty percent investment in the real estate sector of Rawalpindi and Islamabad is from overseas Pakistani’s those who didn’t cancel the purchase but postponed.
Trend of Prices
Nothing can be said about price reductions or overpricing because of the lockdown, the sale of property is not still possible it will be known only after the market opens. Even before the market closed, the market was not trending very fast. Therefore, prices are unlikely to fall even after the property office opens. State Bank of Pakistan lowers interest rates and lowers rates on stock exchange investor may prefer to invest in property. Due to the lower interest rate by State Bank of Pakistan along with the lowest rate by stock exchange, investor may prefer to invest in property which can also improve prices.
The immediate impact of the virus may be increasing the rates of dollar and gold. Because it was happening in past in an epidemic, war or uncertainty but that happens temporarily. Prices go up to normal rates as soon as the uncertainty ends. Eventually everything will return to normal, all walks of life will be good but some people may not be with us. Coronavirus has changed the story in 2020. The virus will be controlled but in every aspect of society, its effects will be visible. And a new story will start in 2021.