The second wave of coronavirus caused chaos on real estate prices in India. Few could have predicted that Covid-19 would return with such a drastic change and kill so many people. Businesses are bearing immense and unimaginable losses as a result of the lockdown imposed in many states and districts.
Realty prices may see upward momentum
When the first wave of coronavirus hit India, experts predicted that the real estate sector would be severely impacted by the Covid-19 pandemic because lockdown was imposed to stop the spread of the disease, and thus construction work came to a halt. Further, laborers from major cities like Delhi, Mumbai, and others left as a result of the crisis. Despite predictions by real estate experts, flat bookings increased in many states and cities.
During the first wave of Coronavirus in 2020, we saw real estate prices rise for a variety of reasons.
Work from home
In the face of an increase in coronavirus cases, most businesses have chosen to work from home in order to limit the spread of the Covid-19 pandemic and save more lives. Since people are increasingly working from home, they need an extra room to complete their office tasks in peace. People have started buying properties with at least one dedicated room for an office, as a result of this.
Spending more and more time with family
Since many people no longer go to work because they work from home, they have more time to spend with their families, which means more time at home. The demand for larger and better houses/flats will also rise, allowing people to spend more time with friends and family.
Actual buyers: For residence, not investment
There has been a significant increase in demand from people who want to buy flats for actual residential purposes, rather than just for investment or property value appreciation. Keeping this trend in mind, a further increase in the real estate sector is expected.
Low home loan interest rates
Most banks are now offering home loans at historically low interest rates. Since home loan interest rates are low, home buyers are likely to take advantage of the bank’s offers.
Residential construction rose during Q1 2021 (January-March 2021), according to a real estate report. Furthermore, the report shows that demand from homebuyers has increased compared to the previous quarter. Private equity investments in the Indian real estate sector reached USD 1.9 billion (INR 135 billion) in Q1 2021. Despite the Covid-19 pandemic-related slowdown, home buyers are regaining confidence in the real estate sector. The first quarter of 2021 has already seen nearly a third of the investment inflows seen in all of 2020.
The current unprecedented surge in Covid-19 cases has left various state governments with no choice but to impose curfews or partial lockdowns, but as cases resolve, the situation will come under control and the real estate sector will thrive even more. Lockdowns and curfews have an impact on the real estate sector, but this sector is known for making incredible comebacks, as it did last year when coronavirus cases began to decline.
There will be an increase in the price of real estate, especially with projects built by reputable builders. There is a simple demand and supply rule. Since demand from actual homebuyers is increasing for a variety of reasons – work from home, low home loan interest rates, more time with family, to name a few – prices in the real estate sector expected to rise as well.