Impact of Coronavirus on Construction and Real Estate Sector
Coronavirus has affected every business even affected every aspect of life. The complete lockdown in the country has also forced several industries, including real estate, to face adverse effects. Even the federal government has lifted the complete lockdown, but the smart lockdown slowed down the businesses. The risk to people’s lives is increasing day by day, so the lockdown is essential, but on the other hand, it is also destroying the world’s economy.
So, is coronavirus affecting the real estate and construction sector of Pakistan? The answer is definitely yes. Different factors directly or indirectly affecting these sectors. Let’s discuss them one by one!
Sale and Purchase of Property is Extremely Low
Due to ongoing smart lockdown, customers who want to buy or sell their properties do contacts and share their information through phones or social media. But they avoid coming and visiting the site. The government has allowed running businesses by following the SOPs, but the thread of corona is still making the customers see and wait.
Real Estate Market Trend after Coronavirus
Despite the coronavirus and lockdown property sector of Pakistan has the highest turnout in March and April. Property Expo was held during those months, which meant booking a new project, especially in real estate. Moreover, the recently launched deals of constructed properties in Bahria Town have also attracted numerous buyers and investors.
Overseas Investment and Trend of Prices
Covid-19 is a global pandemic, so Overseas Pakistani’s are also affected by it. Overseas are seeking information, but still, they are waiting for the situation to get better. The Overseas Pakistanis usually make about thirty percent investment in the real estate sector. But now most of them had postponed their purchase while others are investing through real estate companies offering services to them.
No significant reduction or overpricing of properties had been noticed during the lockdown. The market was not trending very fast before the lockdown; therefore, the property prices are stable.
Due to the lower interest rate by the State Bank of Pakistan and by the stock exchange, investors may prefer to invest in property, which can also improve prices.
Construction Sector and the Coronavirus
Same like the other sectors, the Construction sector of Pakistan is very much affected the ongoing pandemic. However, the recently announced construction package works like oxygen. It is creating millions of job and investment opportunities and also bolsters a frail economy. The industry’s status is given to the construction sector of Pakistan is now showing very positive results. So overall, this sector does not seem to be very much affected by a coronavirus.
Afterward Impacts of Coronavirus
The immediate impact of the coronavirus may be increasing the rates of gold and dollar. Because it has happened in the past in an epidemic, war, or uncertainty, but the effect was temporary. The prices of everything go up to normal rates as soon as the uncertainty ends.
Everything will eventually return to normal, all walks of life will be good, but some people may not be with us. Covid-19 has changed the story in 2020. This virus will be controlled soon, but its effects will be visible in every aspect of society.
For more details, contact Universal Property Network.
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