2020 was a terrible year for all the sectors of development certainly. Due to the pandemic, all the fields had some decline in their well stable performances. The property market also faced a decline in their sales as well as before sales procedures. Considering only Navi Mumbai, a planned city is also going through undesirable downfalls. Since 1971 Navi Mumbai has shown constantly steady growth in infrastructure. Also, the last quarter of 2018 was a profitable period for Real Estate in Navi Mumbai. This post is about the fall and changes that the Real Estate sector of Navi Mumbai went through in the pandemic.
Navi Mumbai Current Status In Real Estate.
From day 1 of the lockdown in March to date, the Property sector declined tremendously. There were hopes of improvement in April-July 2021 but the second wave flipped the coin. Due to the lockdown and the purchasing power of the people, there are immensely low sales this past 2 years.
The property rates in Navi Mumbai peaked in the last quarter of 2018, thereafter declined rapidly and constantly. The impact of the CoronaVirus nearly brought a halt to the Real Estate sector. Even today, there is no expectation of desirable improvement. Moreover, it is an estimation that this fall in the Real Estate in Navi Mumbai will continue for a few more months.
But still considering the aggressive Vaccination drive across India, the real Estate might show signs of sustainable recovery.
Impact on the construction industry and migratory workers
Not only the Real Estate sector but also the other allied industries to it had a similar impact. Small and medium-sized businesses, such as aluminum panels, steel bars, construction machinery parts, and many others, are directly related to the Real estate industry. All of these industries reported losses in 2020 along with an increase in costs, further harming the sales.
Worst is the case with the migrant workers who lost their jobs and also had to suffer from shelter issues. As they worked on daily wages, their daily necessities were also dangered. The brighter side is many developers claimed that workers are a vital part of the Real Estate business so need to be protected.
Increase in rates of raw material may boost property prices.
Looking at the current market, one certainly knows the loss and damages occurring for all the sectors. Increasing demand but inadequate resources are leading to the price rise. The Real Estate sector also is facing price rise issues due to the boost in rates of raw materials. Factors like labor, raw materials, entitled expenditure, and other sundry expenses all together contribute to rising prices. This rise might put brakes on the recovery pace.
Price growth: City-wise break-up
Even though the impact of Coronavirus on the Property market of the megacities was minimal yet accountable. While we see the impact on Navi Mumbai they nearly similar.
| City | Average price as on July 2021 (in Rs per sq ft) | Annual growth in % |
|---|---|---|
| Airoli | Rs. 10,200 – 12,112/sq. ft. | 3 |
| Belapur | Rs. 9,648 – 11,688/sq. ft. | 2 |
| Kharghar | Rs. 8,288 – 9,775/sq. ft. | 3 |
| New Panvel | Rs. 5,610 – 7,522/sq. ft. | 2 |
| Vashi | Rs. 13,600 – 16,362/sq. ft. | 2 |
As you can clearly see the highest rate is for Vashi, which is comparatively the fanciest and posh section in Navi Mumbai. Following is Airoli, which is again an IT hub of Navi Mumbai. Moreover, we see Kharghar coming up in comparison with the past. Kharghar has a high chance of going up as there has been really attractive development these past years. However, Belapur has a constant and steady analysis. Most likely to come up with many more offices and other projects. Lastly, New Panvel has a comparatively slow pace yet is affordable for people.
Other places also have their individual level of development. But also the impact of the pandemic is different yet somewhat similar with regards to the Real Estate business sector.
However, the predictions say that in the coming few months the prices will rise again and reach normalcy in Navi Mumbai. In such a case, it is advisable for the investors, not to panic and invest safely.
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