The covid-19 waves badly hit the realty sector. The real estate sector is facing a slowdown with the housing sales in the top 8 cities dropping by 54% YoY since the pandemic started. The office and residential segment witnessed a decline in terms of both transaction and new completions. The second wave of the covid has been more dangerous than the first wave, because of this the economic activity slowdown again across India. The realty sector started recovery after the first wave but suddenly the sector was hit by the covid second wave. The sales and the construction are again witnessing the slowdown or have come to a near a standstill.
By the end of 2020 – there was a sharp rise in housing sales when some relaxation in the lockdown and covid case came into control. In 2020, homeownership was the center of focus as fence-sitters and renters took the plunge. 2020 was more or less about buying homes and upgrading to bigger residential properties. But, the offices and retail spaces are still cautious. However, investors’ confidence in the Indian commercial realty market has continued.
The realty sector witnessed demand from October last year but received a major setback with the 2nd wave of this year. The rise in covid cases and state lockdown has impacted the real estate sector. The sector experts are more confident of handling this second wave of covid-19 because of the learning from the first wave (in 2020), The government kept the strict lockdown across states and limiting movement of the people as well as supply chain.
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development says, “Though this is having an obvious effect on the important estate market and delaying key property deals. While there have been signs of a big revival within the property market within the half-moon of 2021, but the developers are seeing a momentary halt in an upward trajectory.