Will property prices crash in India due to the third wave of pandemic?

Kishan Thakkar K

Introduction

We have all witnessed the severe impact of the first and second waves of the pandemic on all the sectors including the real estate sector. The impact on the Indian real estate sector was stifling to the point that all the construction near halted and property transactions were stopped. It went into lockdown for the almost entire year of 2020. Since the pandemic has negatively affected the real estate market, but after the second wave of the real estate sector has witnessed growth due to various reasons that we have shared in our other blogs. 

The blogs are listed below. The major reasons include the government initiatives for housing, changes in the mindset of the people, lower interest rates, and technological innovations. An aggressive vaccination drive across India has helped in boosting confidence in both investors and buyers.

As per one of the Real estate developers’ apex bodies, CREDAI (Confederation of Real Estate Developers’ Associations of India) does not see an “immediate impact” of the Omicron Covid variant on property bookings.

The pace of project construction is not expected to be affected for the time being, according to CREDAI. Harsh Vardhan Patodia, president of CREDAI also said, “Developers have learned from the previous two waves of the pandemic and are fully prepared to manage any disruption about supply chain and labour supply to a large extent.” They were indirectly pointing towards technological advancement in the real estate sector. It has made things easier for both developers and homebuyers. 

The statistics from the major cities in India, Mumbai, Pune, Bangalore, Ahmedabad, etc., are showing signs of a healthy recovery from the recent waves of the pandemic. The developers are much more prepared due to lessons from the previous two waves of the Covid 19.

Following are a few of the impacts from the third wave of the pandemic

Cost may increase

The cost of housing is expected to rise 5% to 10%. The primary reasons for this are the price hike in raw material cost. The adverse effect on the booking of existing properties or launch of the new properties is unlikely to affect by this.

There is no doubt that the festive momentum will continue for a while.

Sales likely to rise

The property sales were increased despite the second pandemic wave of the Covid pandemic. This is due to the increased demand, continued festive sales, recovery of India’s recovery, stronger employment market, and low home interest rates. 

Recently, the S&P BSE Realty index crossed the 4000 mark. The index — which covers companies like DLF, Oberoi Realty, Sobha Developers, and Godrej Properties, etc — closed at 4006.85 As of 14 Dec 2021 13:45 IST.

Conclusion

It is advisable to stay safe during the waves of the pandemic. Not to mention, technological advancement has solved major problems that buyers might face. You might face some problems related to the home buying or investment decision with the pandemic waves.

During these times, it is advisable to invest in the real estate sector. If you want to be free from the hassle of the research, contact us to help you finding your perfect investment opportunity!

Staying informed and discussing with experienced & experts while making a decision is an ideal way of making a great deal. All you have to do is contact RoodLand, which provides the best real estate services. For any queries and suggestions, contact us at info@roodland.com and discuss all of your options with us! 

RoodLand is a business solution and advisory organization for the Real Estate sector. It is founded by young professionals with experience in management, marketing, finance, and digital technologies. With their innovative marketing concepts and out-of-the-box methods, RoodLand has successfully delivered amazing results across the region. 

Consider sharing with your friends, family, and relatives, if you have found it useful. 

Thank you for reading! 🙂

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