FCC

The COVID-19 Impact

2020-03-18

The Coronavirus has affected the real estate sector very prominently. During auspicious festivals like Gudipadwa and Baisakhi, we usually see an uptick in the market, which is missing. The housing sales will be impacted adversely due to COVID-19. Last year, the festive season was affected due to extreme monsoon and now the sector is facing the challenge of Coronavirus. Also, prices of steel and other construction materials have a direct bearing on the real estate industry as India is a big importer of steel and iron products, technical construction equipment as well as plastic and fiber elements from China. With production in China going down, the prices of these materials are bound to increase, resulting in increasing the costs and reducing the profit margins of real estate developers in India.

About the Author: Vikas Jain is Managing Committee Member, CREDAI-MCHI Raigad Unit, and CEO, Labdhi Lifestyle.