Sales of houses
The official war can be announced at any time in India and Pakistan. Pakistan has attacked India with drones for the second consecutive day. India is also dropping the drone of Pakistan while retaliating. Also, the Pakistani defense system is also demolishing. India’s attack is reported to have caused huge destruction in Pakistan. Its effect can be seen from Indian economy to real estate market.
Real Estate Advisor ENAROK on Friday said that the ongoing struggle between India and Pakistan could have declined by 5% to 10 percent in the sales of homes in North India. The advisory firm said that the demand for office space and retail zone may also have some effect for a short time, but this decline will not be very big.
Indo-Pak wars have an impact on real estate
1971 War: The 13 -day war brought GDP from 5.4% to 1%. Construction was reduced to military projects only. Housing projects in Mumbai decreased by 12%, the fare remained stable due to rent control. Recession in office space and retail declined in tourism.
1999 Kargil War: Three months tension shook the market, but the effect was short -lived due to economic liberalization. The fare fell by 3–8% in Delhi-Mumbai, the demand for office space declined but it leasing in Bengaluru. Hotel Bookings were canceled in Kashmir and Delhi.
In today’s perspective:
Housing: may fall by 5–10%, but the middle class segment will recover rapidly. Commercial: MNCs can avoid expansion, long -term demand will remain intact. Retail: Malls will last, high-world retail will be shocked. Hospitality: Tourism will be affected, but returning from ‘Victory Tourism’ is possible. Prices: There is no possibility of long -term decline, but prices may increase due to construction costs.
These will also be affected if there is war
House buyers delay shopping. Investors seek safe locations such as gold (and, and, these days, cryptocurrency). There may be a huge increase in prices of steel and cement etc. Governments will spend more on their army and reduce infrastructure and consumers on real estate. There is not much effect on rent but due to low demand, the price of property decreases.
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