Even the roughest scenarios present themselves with opportunities. As it is said every cloud has a silver lining. Here are some opportunities to look out for once the LockDown is over.
It seems evident that low liquidity because of the adverse economic scenario will further increase the Demand and Supply Gap in the Realty Market. With an expected Price reduction and continuous high volatility in the market, it is critical for an Investor/ Homebuyer to look for investments with reduced ‘risk’. An under-construction property bears a higher risk since the risk of delivery adds up to the already existing risks of Real Estate. Completed / Ready to Move In Properties seems to be a better option.
Pre – Rented Investments – This kind of investment has been the most sort out investment for experienced investors. A “pre – rented investment” is buying a property that has an ongoing lease. Thus, giving the investor the advantage of generating an additional monthly cash flows through rental returns and bearing the advantage of Capital Returns through property appreciations. With corporates continuing to shell out rentals in the Office Space category and with strong negotiation power at the side of the Buyer this proposition gives an Investor a chance to get a property at high ROI.
Ready to Move in Housing Accommodations – For an end-user who is looking to buy a home, there might not be a better time. With low Bank Interest Rates and reduced Capital Values of existing units, this makes an ideal time to buy his dream home.
Distress Deals – Most properties being offered on a lower Capital Value than the Market rates is a good opportunity in any scenario. There is a higher probability of getting a lucrative deal once the Lockdown is over from the people who are facing a liquidity crunch.