“Expectation of consumption snag looks more palpable now than last year. This would particularly impact home purchases in the country that require big-ticket investments. This is in contrast with the first wave in 2020, when the contraction in economic growth was driven primarily by supply disruptions due to a prolonged nation-wide lockdown. The demand for housing in India might also impact amid a change in stance in the banking system.Īccording to a recent report by QuantEco Research, the second wave of COVID-19 would hit the Indian economy by prompting people to save, rather than spend. COVID-19 may turn out to be a short-term dampener,” said CREDAI national president Harsh Vardhan Patodia, at a virtual press conference. In case of a complete lockdown or loss, the (buyer) sentiment may get impacted. If logistics and supply chain support are available and migrant labour is on sites, I do not think there will be a problem. “We are worried about the second wave of the COVID-19 pandemic. The surge in cases during the COVID-19 second wave, has resulted in large parts of India, especially in Delhi, Maharashtra, Rajasthan, Odisha and Gujarat, now being under restrictions which include partial lockdowns, weekend lockdowns, night curfews, etc. On June 2, 2021, India’s total caseload stood at to 2,83,07,832 while total fatalities from the virus reached 3,35,102. It is the second most-affected country by active cases, at present. *** Surge in Covid-19 cases may derail real estate from recovery pathĪmid a dramatic spike in the number of new Coronavirus cases in India, the demand for residential real estate in India might be thrown off track, says head of industry body CREDAI.Īs on date, India’s share of global active Coronavirus cases stood at 13.08%. “The twin rate hikes by the apex bank would ultimately result in home loan interest rates going up, thereby impacting buyer sentiment,” Dhruv Agarwala, CEO of and, said. This decision could also prompt developers to increase the prices of new housing projects in India. Banks have begun to announce increase in lending rates following the RBI move on June 8, 2022. However, further appreciation in property prices - a highly likely scenario, since the RBI has increased the repo rate by 90 basis points through two quick announcement - may act as a dampener. *Weighted average prices as per new supply and inventory Source: Real Insight Residential – January-March 2022, PropTiger Research Price range in Rs per sq ft as on March 2022* The report shows that all the eight markets covered in the analysis underwent an upwards movement in average rates of new properties.
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