COVID – 19. Has disrupted all the world economies due to shut downs all over the world. all the sectors of economies have been affected so is the realestate sector.
Demand in realestate has contracted as it has happened in Many other sectors of the economy. Whatever demand exists there Consumers are waiting for discounts and prices to come down. It is very unlikely to see prices to come down unless builders take a major hit because due to COVID 19 and due to disruption of supply chain in the world prices of most of the ingredients getting used in realestate buildings have gone up, like cement, steel and sand.
Thus builders and realestate are getting hammered from both the side that is demand side less demand existing and on the supply side prices of all the goods have gone up, thus prices of apartments should have gone higher, instead consumer are expecting prices to lower than past two years.
This way many builders and realestate developers will have to shut down many of their shops, and many of them will have to reduce price to such level that they will have forced closed downs. This will affect the overall economies of the world and especially the poor and middle class people.