Effect of Coronavirus (COVID-19) on Real Estate
This short briefing has prepare on the behalf of the effects of Coronavirus in the world. A drop in unrealistic real estate prices in India has been long overdue.
Important steps are taken by Government
First of all, Important steps taken out by government :-
- The Sirsa, Hisar and Fatehabad police have seal all state and district borders. They are only allowing people in emergency services to commute.
- The date to file income tax return for financial year 2018-19 has been extended to June 30, 2020. For delayed payment, interest rates reduced to nine per cent from 12 per cent,” Sitharaman said at a press conference organised through video conferencing.
- Prime Minister Narendra Modi announced ‘total lockdown’ for 21 days in India to combat coronavirus pandemic. This lockdown will be in place for 21 days and more stringent than Janta Curfew, he added. The Prime Minister described the situation in different countries due to the pandemic that has infected more than 3.5 lakhs people and killed over 16,000. All essential items will however be available, the PM added.
- Finance Minister announced that ATM withdrawal fee has been waived for three months. No minimum balance requirement fee was also announced.
- Government to spend Rs 15,000 crores to ramp up healthcare infrastructure to face infection surge in the coming months.
Effects on Share market due to Coronavirus
The spread of COVID-19—more commonly refer to as coronavirus or novel coronavirus has officially been declared a pandemic by the World Health Organization. Major events and conferences has been postponed or cancel or corporations are telling to employees to work from home. And stock market has dropped 30-40 percent since March, 23.
The virus is battering China’s economy. The precise impact to the global economy is unknowable, but it’s clearly causing disruptions to certain sectors of the economy.
Real State downfall Due to Coronavirus
- Commercial real estate sector is not the stock market. It’s slower moving and the leasing fundamentals don’t swing wildly from day to day. If the virus has a sustained and material impact on the broader economy, it will have feed through impacts on property as well.
- The outbreak has also prompted a flight to quality, driving investors into the bond markets, where lower rates are creating more attractive debt/refinance options.
- If past outbreaks are a useful guide, then COVID-19 should largely be contained by the first half of 2020. Most anticipate a strong rebound in markets in the second half of the year.
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