The coronavirus epidemic has had a significant impact on the realty sector. Due to the lockdown, people have to work from home (work from home). In this context, realty companies say that the buyer is not willing to lose his pocket more. They want to buy budget-friendly homes instead of luxury houses. Previously people wanted to live as 'paying guests', now they want to buy apartments in their budget. During this time, demand has arisen in the budget segment, not expensive.
Apart from this, another change has come in the realty sector. Realty companies have been forced to lay off employees and cut wages due to reduced sales. In the coming months, these companies are looking at various ways to reduce costs in view of the possibility of sluggish sales. Experts gave information about this.
Having trouble for three to four years
According to experts, the real estate sector has already struggled for the last three-four years due to blockades and delays in getting clearances arising from the implementation of new arrangements like demonetization, Real Estate Regulation Act (RERA), Goods and Services Tax (GST). Used to be.
Crisis on the job of two lakh employees
According to estimates by MyHearingClub.com and Sarkari-Naukari.com, about two lakh employees in the real estate sector may be fired due to the Coronavirus crisis. He said that more than 60 thousand people have been evacuated in this area so far.
Developers are focusing on reducing costs
Rajesh Kumar, chief executive officer (CEO) and managing director (MD) of consulting company PropCuncium Infratech, said, 'The sector is having a major impact on sales. There is also a possibility of default in pending payments. Already most of the developers are facing a shortage of cash and hence they are now focusing on reducing costs. They are doing layoffs, closing their offices.