Top challenges in the Real Estate Sector in Kerala – 2020

Real estate industry has faced a lot of ups and downs during the pandemic. Most of the people are enthusiastic about the real estate industry in kerala. Please spend some time with us to know more about the top challenges in the real estate sector in Kerala.

The COVID-19 pandemic has been plaguing the real estate sector since the beginning of 2020. However, the optimistic news about the invention of vaccines has changed the scenario. It has energized the property sector and people have started investing in the field as before. Although this is the case, the challenges haven't disappeared completely. The builders in Kakkanad, Kochi, Trivandrum, Calicut, Kottayam, and other prominent regions in Kerala are facing challenges. However, with calculated moves and well-planned decisions, they are expected to come out with flying colors in the future.

We will be analyzing the top challenges in the real estate sector in Kerala.

  • Unforeseen Delays in Completing the Projects

  • The lockdown subsequent Coronavirus spread had severely affected the infrastructure development processes and construction works. A majority percentage of migrant workers returned to their home states owing to the uncertainty about the recommencement of works. As the projects were not completed and handed over, many of the builders lacked funds to sustain.

    All of the above cascaded to cause a conundrum for real estate firms. They were slow to begin the work when the government removed lockdown and directed recommence all the activities observing COVID guidelines. The stoppage of work for an extended period, reduced availability of low-cost labor, the shortage in principle, and anxiety about the future have resulted in unforeseen delays in completing the projects. Only a handful of reputed builders in kochi have returned to the track.

  • Heaping of Unsold Properties

  • The pandemic has affected the public adversely. They have turned overcautious about the decisions whatsoever. Keeping adequate balance in their account has become the priority for the people from middle-class society. This has led to a reduction in sales of property, which was aimed at the said section.

    The rise in the number of unsold properties has become a matter of concern to the real estate sector. The developers are trying to find potential buyers for the property. In the bargain, they are offering incredible discounts to sell out the unsold properties. The positive effect of the move is evident. The sale is picking up again. The real estate sector too will return to its prime past soon.

  • Narrowing Availability of Land

  • Kerala is the densest state in India. The properties in all the prime locations in the major cities have been sold out. The shrinking availability of free space has forced the developers to search for property in the interior parts. At the same time, well-established builders are successful in finding a property at prime spots in Kochi, Trivandrum, Kottayam, Calicut, etc.

    As the availability of land is not going to increase, rather reduce, it is advisable to own a property at the right location at the earliest. It will ensure a quick ROI for you. Further, act as a clever investment for future generations.

  • Rising Real Estate Prices

  • Real estate prices had been rising unprecedented until the beginning of 2020. However, the COVID-19 pandemic has reigned the property prices. With fewer people investing in real estate for the past few months, the real estate prices are in a stabilized condition now.

    This will not be the case shortly. The arrival of the Coronavirus vaccine will change the scenario. People will start investing in properties, as it is the best investment option, and the prices will go up. It will affect middle-class society more.

  • The Strict Norms and Regulations

  • The real estate norms have turned strict with the Real Estate Regulatory Authority (RERA) and the introduction of environmental regulations. Kerala will be having more problems with these regulations in place. As the state has several estuaries, water bodies and environmentally vulnerable areas, the land available for development has reduced extensively.

    The real estate developers are in a tight spot due to the aforesaid regulations. They have limited land available to develop. Thus raising the competition among real estate firms for gaining property at the right locality.

    The Tail End

    Challenges make us stronger. The real estate sector in Kerala will also strengthen facing the adversities and will grow further. Further, it will be beneficial for the customers to purchase property at the best price.

    You can utilize the time for procuring property at your favorite spot. Numerous builders are extending lucrative offers and deals for selling out their properties. Check out the latest deals and get your dream home. The interest rates are also at an all-time low, which is also favorable for customers.


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