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How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

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How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

Last updated: 17 hours ago
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  • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

    Most of the countries around the world have cut their interest rates by almost 200 basis points, bringing down the average cost of borrowing by a huge margin.
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    • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

      Houses in Germany had been priced at 11% higher rates compared to the previous year and in countries like China and South Korea, the demand and purchases had been so high that local authorities had to bring in restrictions on home buyers due to put a tab on the excessive buying spree.
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      • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

        Originally posted by Malvish View Post
        Houses in Germany had been priced at 11% higher rates compared to the previous year and in countries like China and South Korea, the demand and purchases had been so high that local authorities had to bring in restrictions on home buyers due to put a tab on the excessive buying spree.
        the quite possible reason could be supply is less and demand is high in EUROPE... But on the Other hand, In India it's flip, supply and unsold inventory is so high and demand is less (or maybe price is so high that people do not want to buy).
        Last edited 3 weeks ago.

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        • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

          Another reason for the above is that many rich Asians have seen that few countries in Europe have handled the epidemic pretty well and many rich Asian families are looking to buy homes there, in case of an another epidemic in future.

          There is news of similar high demand of Housing in New Zealand & South Korea too, though China defies this logic.

          Above is as per some friends living in Europe and New Zealand, but their assessment could be wrong.
          Last edited 3 weeks ago. Reason: Typo
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          • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

            There are three major reasons for the rise in housing prices in the western countries:

            1. Fall in interest rates owing to coronavirus: It would come as a surprise for us Indians that almost every country in the western region and eleswhere has cut down interest rates by almost 200 basis points. As a result the average cost of borrowing has come down a lot. As a result borrowers are now affording bigger mortgages to buy bigger homes, while those with existing mortgages are switching to fixed home loan models for the extra cushion.

            2. COVID-19 induced recession and governments offering cash hand-outs: The well off countries handed out caih to several the households, to preserve income and under such effort wage subsidies, furlough schemes and welfare benefits are now amounting to 5% of the GDP in most of the American and European countries. Surprisingly, the household incomes in the large economies were USD 100 billion higher than they were, before the pandemic.

            3. Various government measures to deal with the COVID-19 impact on real estate: There have been many measures taken by western countries to help households and home owners and support the housing market in general. In countries like Spain and the Netherlands, the governments have allowed borrowers to suspend their loan repayment and foreclosures. In Japan, banks have been asked to defer principal repayment on mortgages.

            In India, the government had announced EMI moratoriums for a period of six months, which was somewhat gave relief to many home owners from the cash crunch.
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            • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

              As per a recent sentiment survey conducted by an online property portal, buyers seem to be coming back in action in the property market based on the number of property searches carried out.
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              • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

                Overall residential demand to decline about 40% in FY21: Ind-Ra

                Ind-Ra believes that the sales will be hampered until the ongoing covid-19 situation stabilises, and thus cash flows for these players could also come under pressure, as is being shown by the 46% year-on-year decline in their EBITDA in H1 FY21.https://www.indianrealestateforum.co...90#post2688390
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                • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

                  As per online statistics, at least residential property "search" is gaining momentum owing to various reasons like all-time low interest on home loans, stamp duty waiver in some prime states and offers and discounts by developers.
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