Steep reduction in property prices is expected

The real estate sector has been impacted immensely due to the COVID-19 pandemic. Steep reduction in property prices is expected. Dr. Niranjan Hiranandani is President (ASSOCHAM) and also President (National) NAREDCO reveals, "In theory, price is a factor of demand and supply, something we have seen across the years. Post the recovery from the pandemic, one does not see that ratio, for real estate, getting impacted in a manner as would result in price correction on the lower side. It is true that COVID-19 has impacted the economy and real estate, the lock-down has resulted in 'normalcy' being severely impacted. It has also opened up usage of alternative platforms for marketing and sales related activities i.e. on-line, digital and telephony, leveraging virtual walk-throughs and 3D rendering along with digital form filling process and online banking to transfer money. On Gudi Padwa, those who wanted the positive perception of the festival opted to make payments using on-line options. Yes, the situation is challenging, but housing is a basic necessity, and is not likely to be impacted to the extent that price points would reduce. We have just passed the first 'one third' mark of the 21 days lockdown; let us wait and watch how things work out. As of now, we foresee a drop in offtake by approximately 20 per cent, but there is no impact on price points visible as of now."

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