The Impact of Covid 19 on Homeownership

Kishan Thakkar K

Covid 19 crisis and homeownership

Homeownership has a direct correlation to the status symbol in India. Indian holds the largest homeownership rates compared to the rest of the world, especially the Western countries. India has homeownership, with almost 86% (Source: Census of India 2011, Trade Economics), While Switzerland has a homeownership rate of 42%, the US of 65%, and Japan of 61%. The major reason for this is the permanent residence of Indians in Tier-2 and Tier-3 cities and the urge for homeownership as a part of the Indian culture.

Source: OECD

Urbanization has impacted the huge migration of labor to move from rural India to urban pockets in recent decades. This has resulted in, many people renting houses or moving to informal settlements, like slums and urban pockets around the country. To address the issue, the Government of India has launched Pradhan Mantri Aawas Yojana (PMAY) which aims the target ‘housing for all’ by the year 2022, when India completes 75 years of its Independence.

There is a correlation between homeownership and COVID-19 to consider are, sense of social security, social status, a better home environment, maintaining privacy during the lockdown. Apart from the social reasons, homeownership makes lots of economic sense during the lockdown, like, property appreciation and perks from the government and developers, discounted pricing, and cheaper home loans.

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