Real estate is expected to be impacted badly in the near term due to the coronavirus pandemic, which has brought major economic activities to a stand still. To find more about property prices, CNBC-TV18’s Sonia Shenoy and Nigel D’Souza, spoke to Sameer Baisiwala, Executive Director at Morgan Stanley Research.
Baisiwala gave his outlook on the market from the side lines of the Morgan Stanley Virtual India Best Conference.
Speaking about the real estate sector, he said, “Over the last four-five years, property prices have remained flat, which means in real terms they have fallen 30-35 percent and incomes have gone up a lot.”
“Clearly COVID-19 has weakened demand. Going forward, we expect both negative income effect and negative wealth effect to play into the property sector. Therefore, the demand in a short-term would remain weak. Office space would be far more resilient, followed by residential space and last would be the retail space, that is the way to think for the next six months or so. Looking beyond that, we are constructive on the property sector in the 2021-22 calendar year and beyond,” he mentioned.
(Source: CNBC TV18)