Will Real Estate Business Boom After Corona Ends?
Contemporary research claims that an economic crisis may be looming around the horizon in a post-covid-19 world. A significant share of this dismay can be attributable to a probable shock in the real estate market.
This article sheds light upon all the confusions and makes an attempt to deduce the probable outcome for the real estate market and when we may overcome it. Simply stated, it'll provide an answer to the question "Will real estate business boom after Corona ends?"
The Before Picture
At the start of the current year, the sector's prospects appeared bright with increased demand among customers. According to Bangladesh Bank, the volume of banks' advances to the real estate sector was only Tk 408 billion in the fiscal year (FY) 2013-14 and it reached 800 billion within the year 2019.
After overcoming the time of crisis that began in 2012, the real estate market began to improve at the end of 2018 thanks to low-cost loan facilities for government employees and stable national economic growth.
The Current Picture of This Sector
The current Covid-19 pandemic has thrown many of the economic indicators out of the window. The government and companies have been trying to mitigate its impact and return things back to normalcy. Most of the sector-related activities were halted during the Covid-19 pandemic.
Such an impasse in such a crucial area has already left large numbers of people unemployed and generated confusion about major investments. The steps are taken to get more people interested in real estate came into practice like "zero equity" loans, higher debt ceilings, lower interest rates, and major development in infrastructure etc.
All of these were inspiring people to invest in the country's real estate market. But now the virus fear will curb all of that, and dishearten the people to take that step.
Steps Taken by Government
The future of the realtors is related to over 200 linking industries such as steel rod, cement, ceramic ware, and bricks etc. Hence to combat the crisis threatening the real estate industry, our government has taken two significant steps- first, reducing the registration cost of the property from 14% to 10% and second, enabling previously undisclosed capital to be invested in nominal taxable real estate.
All of these announcements have been widely praised by many in the sector and there are strong expectations that this will continue to reinvigorate. The steps taken by the government are praiseworthy but there always will be a benefit of doubt in any decision. It might come up to our mind if the planning will sore past the pre-Covid-19 pricing or not.
The Glimpse of Hope
The researchers believe that the situation created by Corona is not constant & it'll pass soon. Thus realtors are now starting to work within a limited scale. There's no doubt that real estate is a competitive market & it's playing a crucial role in the economic development of our country. It has created jobs for millions of people and has helped improve the connecting industries.
So both the financial institutions of government and non-government need to lower interest rates and extend loans to help the sector overcome the current crisis. Analysts also believe that lower price rate & the incentives provided by the government may increase the sales in the real sector, but we can not be 100% positive that after this invisible virus is gone the business will BOOM.