It isn't a hidden fact that every aspect of human life has been affected adversely, by the global rampage caused by COVID19. Spreading at an alarming rate, coronavirus has penetrated over 73 countries, pushing up the death toll and paralysing global affairs. While the pandemic has claimed over 8000 lives globally, holding countries like Italy and China hostage, in India - thankfully, the number remains in single digits. However, the number of infected people is currently touching 153 and is very likely to go up, within the next hour.

Another big casualty of the pandemic is the global economy. With major commerce centres across the world sustaining massive losses, global markets have been on a deep dive. Even stock markets are not immune to the virus - with Sensex now observing a record three year low, wiping out nearly ₹15 lac crores in investors wealth.

CAN CORONAVIRUS FREEZE INDIA'S REALTY GROWTH?

The Indian Realty sector has been through a lot these last couple of years. From gaining a new regulatory body to weathering fierce slumps, the country's real estate graph has grown slowly, but steadily. However, the sudden onslaught of the coronavirus in China and subsequently the Indian markets has been a direct blow to the real estate sector. However, a silver lining is that the upheaval interrupts consumers and potential homebuyers' current willingness or ability to invest in property, but hasn't yet instilled hesitancy or fear of investing, once the pandemic subsides.

INDIAN REALTY'S CHINESE CONNECT

Apart from the general slowdown that has slunk over the realty market - driven by the fact homebuyers, and developers alike, are wary of stepping outside their quarantined environment in fear of getting infected. However, the sector and it's allied markets have both also taken a severe beating because of their connections to the Chinese market.

India is one of China's foremost customer, and heavily imports materials that are integral from real estate construction. Some of those are -

• Iron and Steel
• Technical construction equipment
• Electronic equipment
• Plastic and fibre parts and elements
• Solar panels

Another important aspect of these trade relations is the price point of these imports. The sluggish production in China will cost India more rupees as prices of these materials will now cost more. With these major imports affected, India's manufacturing and construction sectors are sustaining a sizable loss - bleeding money with halted work and delayed construction. So while this development wouldn't directly deter homebuyers, this would certainly slow down real projects' construction progresses - eventually pushing possession dates.

COVID19 TAKES OVER REAL ESTATE, AND FAST

While the supply and demand of property remain our biggest concern, let's also look at some issues plaguing the sector - all brought to light, amid the recent yet fierce spread of COVID19.

1. Slump in commercial real estate - most of our focus has been on residential properties, however, this global pandemic is likely to take a lot away from the demand for commercial property too - namely office spaces and retail lots. Investors would be reluctant to commit to immovable assets, such as these in the current economic climate.

2. Jittery investors - A strong flight of capital is expected, as investors would be more inclined towards investing in a more stable bond market.

3. Depletion of investments and disposable income - come the spread of coronavirus, not only have the markets dipped - shaving chunks of investors' wealth accumulation, but the current work from home diktats also have some commercial establishment force employees to take leave without pay. This threatens potential homebuyers' ability and intent to invest in real estate.

4. Lesser site visits and footfall - one of the more obvious issue is the reluctance of homebuyers and real estate brokers and developers to venture outside and visit property options, discouraged by the contagious nature of the virus.

IN THE TIME OF CORONA, CAN REAL ESTATE BE THE RIGHT BET?

While the COVID19 health crisis has certainly created deep ripples in the realty sector, it might be prudent to consider if it is in fact, the more stable investment option - at a time, where the global economy may remain tumultuous. We've compiled a compelling set of reasons, all illustrating why real estate is a safer long term investment option, that is designed to weather pandemics and momentary market catastrophes.

• Real Estate guarantees a stable return on investments
• Property investments' value appreciates over time, eliminating temporary threats posed by sudden market dips
• Real estate investment is a solid risk diversification option
• Property investments pose a lesser risk, due to its tangible nature and benefits

If history is any indication, the world is bound to recover sooner than later. Every sphere of the economy, including the real estate sector, will face constraints such as reduced demand and delayed business decisions, but it will recover eventually.