Home finance enquiries across India have seen a dip due to the lockdown post the Coronavirus spread, shares Rishi Anand, Chief Business Officer, Aadhar Housing Finance in an exclusive interaction with 99acres.com.
The COVID-19 has not only impacted lives across the world but has also impaired the business operations across sectors, including real estate. Let’s understand how the epidemic has impacted the Indian real estate market and the home finance sector.
1. How has the COVID 19 outbreak impacted the Indian real estate market?
While it is too early to comment on the impact but the real estate financing sector has undoubtedly seen a general slowdown post the Coronavirus spread. Cash flow in the industry has also reduced as there are no home buyers in the market. If the situation continues for a couple of months, it may have a ripple effect on the overall liquidity supply and the entire payment chain may get affected.
2. Are homebuyers still enquiring for homes loans?
Fresh enquiries with respect to home finance have seen a dip due to lockdown after the Coronavirus. As most of the construction sites are shut, and site visits have reduced, home buyers are unable to decide on their purchases. Hence, the financing market has also seen a slowdown.
3. Do you think the epidemic has/would hit property prices in India?
It is a vicious cycle as delayed payments from current property owners may create a liquidity challenge for the property developers. To combat this, and generate the required funds', developers may come out with special discount packages to attract buyers. However, it would be a temporary exercise as developers across India are reluctant to curtail the property prices as they are already dealing with financial challenges, and additional cut would result in operational losses.
4. What measures are you taking to implement social isolation at your office?
As an organisation, we are focused on employee welfare and have taken necessary steps to ensure employee safety from a 24-hour helpline, especially for those working from home. For critical functions, 50 percent of the staff is coming to office on alternate days to to avoid clutter. Moreover, we are practising daily sanitisation of working desks and entry and exit points of the office.
5. Do you expect a strong realty rebound in the near future?
In case the pandemic is under control in the next few days, the situation may resume normalcy by April or May. Home is a necessity; hence, buyers may enter the market soon, and the purchase process may resume the normal course as before.