Impact of COVID-19 on Home Buyers
DoctorProperty.in expects an increase in demand for bigger homes by the year 2021-2022 as work from home will become more common and productive. Bigger homes will be preferred that allow work, recreation, better cooking environment, self manage& outdoor washrooms for hygiene.
COVID-19 is going to impact the housing market in several ways. First, there are the practical issues of viewing, showing and closing deals while also practicing social distancing. Then there’s the bigger picture: the likely dramatic changes to buyer confidence, borrowing ability, as a result, property prices, there is also the likelihood that property transactions already on foot may be affected and settlements delayed.
Will house prices drop due to coronavirus in South Delhi?
It is highly unlikely that house prices to drop they could drop by 3%-5% due desperation of a few sellers but generally will remain stable as most sellers will not motivated to sell and will wait for the fear factor of the Coronavirus to taken care off and then sell.
South Delhi being a limited supply market most sellers will wait for the COVID-19 wave to weather off. While the housing market was gaining momentum due to interest rate cuts and easing of credit conditions, the pandemic has changed the scenario.
People have realized the utility of a larger living and breathing space. Family time-space.
We envisage a paradigm shift from smaller liveable spaces to bigger. We expect investments in quality of life living and self-indulgences. Below are a few questions which would be in mind of most of the Buyers .
I’m looking to buy. What do I need to know?
In this environment, buyers who are in very secure jobs are actually in an improved position because the overall market is weaker. Coronavirus will take out a group of buyers – those adopting a wait-and- watch approach.
Many of these types of buyers will be taken out of the housing market for now.
The keen buyers who are in an improved position, should look at buying about 15-20% more space than what they were look for on BC (Before Corona). With work and school from home becoming the new and more convenient normal. The Buyers should look at upgrading their colonies and definitely look at buying apartments and homes from the best builders of the colony.
At Doctorproperty.in we are developing a KYC tool for the buyers. This Know Your Colony tool along with Builder Selection Matrix will assist buyers to shortlist colonies and developers and advice them how to encash on this never before opportunity.
Tips for buying a home during coronavirus in South Delhi
- Fixed home loan rates are the lowest they’ve been, and it might be a good time to take advantage of this ultra-low interest environment.
- Work with a Trusted Advisor to see if you’re in a financially sound position to get pre-approved for a home loan. With banks and lenders tightening their policies, we know how to service your loan to the right lender.
- Request for videos of the home you’re planning to buy. Options like virtual tours and digital walk-throughs are becoming more prevalent.
- It’s still best to schedule a private inspection and make sure to adhere to the government’s rules on social distancing.
- Enlist the services of a buyer’s agent like DoctorProperty.in who will help you get private viewings and shortlisting houses.
- Make sure your job is secure as banks and lenders are performing employment checks before settlement.
What about closing?
Closings on the purchase of a home may be delayed in some areas. It is possible to limit the number of people at the closing through the use of electronic signatures, but that won’t always be enough.
As we speak about this, we all know this pandemic financial effect is temporary, and we are all are curious to know how will this financial impact hurt us.
The interim relief by RBI on the moratorium on the EMI’s has brought in a big relief for borrowers across the country to manage their finances in these tough times. The central & state governments have been trying to keep them safe by providing adequate relief and measures.
The Months “April to June” are considered to be extremely important for real estate in India. There are reasons for the same:
- March is the financial year ending in India and many property buyers/investors invest in Indian property just before the end of March and register within April to June.
- March/April also marks the end of the yearly education of kids in India Schools and this is a time when many families plan to move their homes and take major property buying and selling decisions.
Everybody is going to be impacted in some way, shape or form. But, you don’t have to be impacted negatively and come out stronger on the other side of Corona pandemic.
At Doctorproperty.in a venture of SanD Advisory Pvt Ltd, we have earned the reputation of being South Delhi’s most innovative Real Estate Firm – and go to specialists for NRI buyers, sellers, developers, landlords and companies around the world looking to establish themselves in India & for Indians considering business expansion in South Delhi.
With our state-of-the-art Buy Real Estate By Research Methodology dedicated to designing the science behind the real estate prices in South Delhi and premeditated model with an embedded strategic foresight capability, we can help YOU come out of this Stronger!
In our next blogs, we will cover the impact of Corona on different stakeholders in real estate like Builders, Sellers, Agents, Govt& NRIs.
In these times, undoubtedly Home is our happy & safe place!
Doctorproperty.in a venture of SanD Advisory Pvt Ltd. is a boutique real estate advisory & transaction company, having advised the who’s who of South Delhi on their real estate assets. We have special expertise in high value transactions & dispositions in South & Central Delhi. With over 500+ clients, SanD has done transactions worth INR.5000cr. since inception. DoctorProperty.in, our online expert will respond to some of the common questions we’re receiving regarding buying a house during this pandemic.
