With the coronavirus outbreak, the economy has been hit hard. The lockdown has impacted many sectors including the real estate sector. Mumbai is among the most expensive city in the world to live in. One of the major reasons for this is the expensive real estate of the country.
In the last couple of months, the property rates in the city have witnessed a downward trend. According to a report, the rent of residential property in Mumbai has declined by 20-25 per cent. Be it property in Bandra or any other localities, they are all riding in the same boat.
Due to the coronavirus pandemic, not only the economy but also the real estate sector is adversely impacted. A lot of people working in the real estate sector have left the city and gone to their respective hometown. Apart from this, an investment in real estate was earlier considered to be one the safest investment but not many people are now looking at this sector from investment purposes. With the liquidity crunch, the buying power of the people impacted, and hence they are not as willing to invest in property as readily as they were before the COVID-19 outbreak.
During the lockdown, the migrant workers that were engaged in the construction work all across the city have gone back and the projects that they were engaged in have gone on hold. This has resulted in a delay in the projects and the contractors have not been able to complete their projects in the time frame that they had promised.
With the decrease in demand, investors are selling at a discount of 30-35 per cent. There hasn’t been any transaction due to the lockdown from the past two months. Investors investing in big projects are further expecting a 10-15 per cent decrease in the real estate sector.