Onset of Covid-19
During the early months of 2020, the entire World came under the grip of the Covid-19 virus. The impact of Coronavirus on the Indian real estate sector was no exception. It was stifling to the point that it brought property transactions to a near-halt last year when the nation went into a complete lockdown between March and June 2020.
Since then, the market has taken several strides towards –recovery. Like in the past, the Indian real estate market yet again showed its mettle and buoyed by signs of revival that were seen after the first wave, the real estate sector saw quite a few new launches. Things did get back to being normal and it looked it would be business as usual for the Indian real estate market.
The Second Wave
But no one expected the second wave of COVID-19 infections to be as vicious as it was and that dealt a severe blow, to the extent that the sector’s performance remained a tad poorer than last year for the same period. The unprecedented scale of the impact of COVID-19 on Indian real estate can be gauged from the fact that the sector has incurred a loss of over Rs 1 lakh crore since the pandemic broke out (Source: KPMG)
Real estate is the second largest employer after Agriculture and had to face the brunt of the pandemic, owing to the migration of the labours who left for their hometowns. Not only that but the frequent lockdowns, travel restrictions, and most importantly the economic downtrend made a huge impact on the sales of new homes.
However, as we have seen time and again, the Indian real estate market came back albeit with more resilience and finesse than before. Yes, all the drawbacks suddenly became a blessing in disguise. With work from home being the new normal, people who were living in rented homes, service apartments or PGs, invariably looked at a permanent solution, which in turn spurred the demand for homes. Not to forget the high inventory by now was available at all-time low prices making it an attractive buy for many who felt a new home was beyond their reach. The economic downturn had resulted in lower interest rates as well, yet again a blessing in disguise for people who went for home loans as they were available at low interest rates.
Lastly, with the high inventory, low prices, low-interest rates, and work from home being the new normal, the demand actually surged and even 3BHK properties were selling like never before. Why? Simply because if anyone ever wanted to buy a dream home at low prices, at low-interest rates, with plenty of property options to choose from, then surely there could not have been a better opportune moment than the post lockdown period. So what are you waiting for? Hurry before the market gets back to its full demand and before the prices skyrocket once again.