The explosion of coronavirus in China, Wuhan and current discovery in Delhi-NCR.These city has crashed the business sentiment rigorously. And the Indian real estate industry would also be affected as obliquely. As businesses such as heavy machinery, steel, and Other raw materials. Which are profoundly dependent on Chinese imports. So, let’s discuss the Impact of coronavirus on the real estate.
As per data research, Coronavirus has affected more than 60,000 people globally. And has taken over 1,400 lives in China. With the World Health Organisation (WHO) announcing it as a global health emergency. And the business viewpoint is severely impacted. The disorder has created a great deal of obscurity regarding trade and imports. Not only in China but globally. So, the real estate industry is also not forborne.
Impact of coronavirus on the real estate–How would the Indian real estate sector be affected?
India massively imports articles used in construction projects from China. Some of these are –
- Iron and steel products
- Technical construction equipment
- Electronic equipment
- Plastic and fiber elements
- Solar panels
At a production capacity of 928.38 million tons (MT) in 2018. Because China endured as the largest producer of steel. Although India is the second-largest producer. It lags critically in terms of production capacity and which stands at 106 million tons. This heavy reliance on China for steel and steel products is a matter of concern for the industry. Because production in China going down the prices in similar industries are compelled to increase. Thereby raising the costs and reducing the profit margins of real estate developers in India. The production in the construction industry in China will have descending price pressure on global metal prices.
What would be the opportunity for Indian real estate businesses?
If we observe from the Indian business perspective. The coronavirus disorder might be an opportunity for Indian businesses. To improve their production capacity. And gives a push to the “Make in India” campaign.
The Indian Government is promoting the steel companies. So, to increase production capacity and grasp a larger market share. The Ministry of Steel, Government of India, and is developing a strategy paper for manufacturing. 10 million tons of unique steel at the cost of Rs 50,000 crore. With 50,000 employment potential in the present scenario.
Conclusively, with recent news of Coronavirus reaching Delhi-NCR and Noida. The real estate industry needs to bolster itself. For an even worse influence than earlier thought. And With the intimidation of infection affecting human lives. The real estate sector can anticipate a dip in property visits. So, to reduced buyer interests.
However, the world has encountered similar outbreaks. Such as bird flu, SARS virus, etc. in the past too and has successfully recovered.
Deepa writes articles for businesses that want to see their Google search rankings surge. She works on building the brand of the company in the Digital Platform. After completing an MBA and having the professional knowledge of Marketing, she is writing here and also working on SEO to provide the best content to the audience in the search engine.
find her on Linkedin here: @Deepa