During the pandemic, real estate business has seen some bad days. Due to the social distancing norms and various restrictions, this sector stopped entirely. As a result, there have been severe loses to various companies in terms of the progress and the number of projects getting stuck. As a result, there has been disruptions in terms of the delivery of projects. This has also caused lots of confusion in the minds of the investors.
Now, there is a lot of speculation that the developers will not be able to finish the projects as soon as possible. There is also disruption in the number of labours who are willing to work in the post-pandemic world. But still the projects in various parts of the world have started, even in India.
But in spite of all this, it has a great affect on the economy of a country like India. It is one of the biggest employers in terms of volume. It also provides support to various sectors. The different sectors that are affected by its good or bad performance are the cement industry, along with paint, furniture, wood, electrical construction equipment, and many more. These industries are dependent on the real estate sector directly and even indirectly in some cases.
This sector has various subdivisions. Here, subdivisions mean the different construction field that are currently present, along with the various fields like sales or purchase, and the activities related to the land involved in any project. This fields have different priorities and can affect the progress of a country in various ways. The hospitals, schools, colleges, various lavish buildings, villas, mansions and various sky scrappers all come under this field.
The various fields indirectly connect the real estate business to the sectors of hospitality, education, entertainment and many more. This also shows that the real estate business indirectly affects the livelihood of various fields. It is because, if one of the projects gets delayed then the people who will be working there after the completion of the project, will get affected due to the delay.
After considering all this, we can easily say that the real estate sector gives an economy the infrastructure. It enables an economy to have the required space for the various purposes. The main part of a real estate sector is the homes for the general public. It makes the majority of the profits that companies make. Now, here there is a pint that you can keep in mind. The thing is that there are various companies that are involved in the real estate business. These companies take care of the entire process, right rom the acquiring of land till the finished project is fully functional.
Now, if we consider all the above points then the real estate sector looks lucrative. But in reality, the sector is very dangerous. The sector is also indirectly dependent on the material that countries import from other countries to manufacture the resources that are needed for the construction of the project. It affects the progress of a project, if some of the raw materials are becoming costly, or are available in scarcity. But in spite of that the project needs to be completed. This ultimately increases the price of the available raw material even more. As a result, the end result is the increase in cost of the property that people get finally. So, it makes the real estate sector a bit risky from the point of investment.
But o the other hand, there are projects that are considered large scale and boost the progress of an area very rapidly. Such projects have various examples like, malls, airports, railway stations, even some multi-billion-dollar cricket or football stadium. These projects make sure that the people of a certain area get the proper connectivity or even the entertainment center for celebration.
Apart from all this, the uneven spread of the entire real estate sector, especially in countries like India, makes it really difficult to regulate the sector. It in return makes the decision-making job for the government authorities even more difficult. The vast spread of a country also creates problems, as a country can have vast habitat in it. Sometimes the various cultural as well the beliefs of the people of a particular area also make it difficult for the companies to take up a development project in an area. This project can be from the real estate sector. This also shows a negative side of this sector.
The various positive as well the negative side of the real estate sector do put forward their own point. The argument can be long and never ending. But the end result depends upon the progress of a country. But we must keep in mind that any development work must be done by keeping in mind the environmental factor of a particular area. So, there also needs to be some better and new rules and regulations for this sector, as there is a rising noise related to the environmental damage that has already been done. All of these, will improve the real estate sector drastically.
