Notwithstanding the massive hit by Covid 2.0 in May this year, the business sentiment has been restored much faster, ensuring faster recovery in residential real estate.
The positive business sentiment is reflected in the Nomura India Business Resumption Index (NIBRI). For the week ending July 25, NIBRI stood at 95.3, at the levels prior to the second wave of Covid-19 pandemic. The monthly Nomura India Normalization Index (NINI) has shown that after facing a lockdown-triggered dent in May, economic conditions in June have recovered to levels similar to April. According to Centre for Monitoring Indian Economy (CMIE) , real estate along with agriculture has been instrumental in bolstering job market recovery, with urban joblessness rate of 8.3% for July at its four months low. A Teamlease Service survey points out that metros such as Delhi, Mumbai, Bengaluru, Hyderabad are set to drive job creation in urban centres. Jobs in sales and technology are in high demand as companies look for both business continuity and growth.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, “Compared to the first wave, the rebound in business continuity and residential sales has been much faster this time. While affordable and mid-market housing segment has been a major contributor to recovery, premium/luxury real estate has also staged a comeback. This recovery is set to gain further momentum in September quarter, with festive December quarter giving big push to residential real estate.