Post COVID-19 Era for the Indian realty sector: Survey
COVID-19 outbreak has brought the real estate activities to a halt across the country, however, two cities have managed to stay afloat during such times. The real estate market in Bengaluru and Pune was the least impacted due to the home buyers’ sentiments. According to a survey conducted by the Indian real estate market forecast 2020, the outbreak of COVID-19 has temporarily affected more than 80% of the buying intent across the Tier-1 cities. However, the real estate market of Bengaluru and Pune has retained the intention of home buyers to increase the sales post-COVID-19. The survey also suggested that the condition of the realty markets of Delhi/NCR and Mumbai will remain sluggish after the crisis.
Dhruv Agarwala, Group CEO, Housing.com, said, “While the Chinese economy has been reeling under the impact of the Coronavirus contagion since December 2019, the situation started to get worrisome in India only in March 2020. Keeping the rising number in coronavirus cases in the account, the government first announced a 21-day lockdown on March 24, and then extended it till June 7, keeping in mind the severity of the situation. The lockdown has impacted all sectors, including real estate. The adverse impact of Coronavirus is visible on housing sales in the last quarter of the last fiscal because March is usually one of the biggest months for sales.”
Any positive predictions about its growth made before the sudden outbreak of the global calamity stand retracted as the government gets busy devising plans to stop businesses in general and the economy in particular from sinking deeper into a slump, amid impending fears of the rupee declining to a low of Rs 78 against the US dollar.
While the real extent of the damage is hard to grasp in a scenario where each passing day is making a great difference, one thing is for certain – India’s realty is likely to suffer short-term shocks on account of the contagion.