Know the future of the Indian real estate market amidst the COVID-19 second wave

Jul , 1
Know the future of the Indian real estate market amidst the COVID-19 second wave

Although the impact of Coronavirus-induced economic difficulties is limited to an extent, the second wave of COVID-19 pandemic is likely to create problematic ripples to a heavy extent. 

According to a Reuters poll unveiled in May 2021, the disastrous impact of COVID-19 second wave in Asia’s third-largest economy will crush the demand to an extent, making the price growth stagnant and offsetting the benefits offered by the government in the form of subsidies and incentives to the real estate developers. Many analysts predicted a 1.3% average growth in property prices due to these adverse effects. 

Recent research by QuantEco Research also highlighted the point that the devastating impact of the second wave would hit the Indian economy prompting people to save rather than spend. Owing to the increased property rates, the demand for even low-budget homes would be subdued in the period that follows the second and third waves in India. Thereby, adversely affecting the rates of properties as well. 

Even though the first wave made barely any impact on the importance of housing ownership against other assets in the events of the pandemic. This acted as a propelling factor for the housing demands. The second wave will in fact disrupt this demand momentum caused by the first wave. 

Meanwhile, the pandemic has led to an increase in the prices of essential raw materials like steel bars, cement, plastic, man-made polymers etc. This spike has been putting a lot of pressure on builders to hike the prices of new projects and the shortage in supplies has been making things worse. 


“In the last three months, iron prices have increased by approximately Rs 20,000/tonne, which is almost a rise by 50%. Apart from this, copper and aluminium prices have also increased leading to a rise in construction costs. In times like this when the real estate industry is already under the pressure of second wave and lockdown restrictions, the rise in raw materials prices will put a halt on the recovery of the real estate sector,” said Ashok Mohanni, President of NAREDCO-Maharashtra. 

Although there was a slight pick-up in home sales during January-March 2021 period, India’s housing market has shown almost flat price growth. However, housing sectors of Ahmedabad and Hyderabad witnessed a 5% annual appraisal in prices, this growth can however be attributed to the fact that the average rates of properties in this market are already quite lower as compared to other parts of the city. 

While the chances of price appreciation or depreciation in the near future is still not visible, it is wise for investors to park their money in real estate in the present scenario at competitive rates, given the fact that housing finance is still available at affordable prices points. A considerable amount of time will surely take for the market to get stable, by that time investors must take a note of the construction status and keep an eye on the state of liquidity of developers so as to make the best choice in the present scenario. 

Post a comment

Your email address will not be published. Required fields are marked *

7 Best investment options in India AI IN REAL ESTATE Artificial Intelligence Benefits of indoor plants in the office benefits of investing in commercial real estate benefits of rental property best degree for real estate investing best places to invest in navi mumbai best real estate stocks Best Residential Property Investment buy commercial property buy corporate office space buy home as per vastushastra buy office spaces Buyers' payments and its utilisation as per RERA Act buying a new home buying homes in India calculate square foot of house cement sector challenges facing in cement sector in 2021 closing costs for commercial property co-operative housing societies laws Commercial Office Space commercial property commercial property for sale commercial property lease commercial real estate Commercial Real Estate 2021 commercial real estate closing commercial real estate for sale commercial real estate in Navi Mumbai commercial real estate in Vashi commercial real estate investment commercial rental property Commercial Residential Property commercial space for sale commercial workplaces corporate office space corporate office space in Navi Mumbai corporate office space in Vashi corporate park in navi mumbai corporate park in vashi Covid-19 impact on Indian Real Estate customized villa in khandala customized villa in lonavala Cyber works Greenscape Group CYBERCODE Greenscape Group digital real estate investment platform DRONE REVOLUTION IN REAL ESTATE INDUSTRY eco-friendly home designs energy consumption for commercial buildings energy efficiency in office buildings Eternia Greenscape Group factors affecting real estate market factors affecting real estate market in India future of digital real estate future of real estate gen z in the workplace 2022 greenscape developers greenscape group Greenscape Group Meraki greenscape navi mumbai Greenscape Realty greenscape vashi GS Royale Greenscape Group Gudi Padwa 2022 guide to buy a second home in india 2021 hedge fund collapse 2021 home design trends to look out for in 2022 home improvements to increase value homeowners association rules housing societies how to plan for second home impact of technology in real estate India real estate market India real estate market 2020 Indian Real Estate Market 2021 indoor office plants invest in real estate stocks KNOW HOW TO INCREASE THE VALUE OF YOUR HOME La Vista Greenscape Group leasing a commercial property legal documents for property lucky plants for office desk luxurious office spaces of Navi Mumbai luxury property Luxury Real Estate luxury villas Maharashtra Rent Control Act measuring tips for square feet of a house most expensive house in india Office Design Tips for Better Mental Health office space for sale office space in navi mumbai office space in vashi office space trends open concept house design post pandemic Real Estate Investment premium Indian home buyers premium real estate company problems with millennials in the workplace Property E-Registration in Maharashtra property investment property listings in real estate portals property sells Real estate agent in India real estate company real estate company in navi mumbai real estate company in vashi real estate growth in India real estate india real estate institution real estate investment companies Real Estate Investment in India real estate investment India real estate investment schemes real estate investment tips Real Estate Investments real estate investor real estate license benefits real estate market Real Estate news real estate portals real estate prices real estate project real estate projects real estate properties for sale real estate property real estate property in Navi Mumbai real estate property in Vashi Real Estate Regulatory Authority real estate rules real estate statistics in india real estate to invest in 2021 Real estate Trends Real Estate updates rent control act rental property investment RERA Act Residence Company in Mumbai Residential and Commercial Property Residential Flats Residential or Commercial Residential Properties Residential Property into Commercial One residential property investment rules and regulations for rental property screen tenants for rental properties Stamp duty and registration charges in Navi Mumbai Technocity Greenscape Group technology template The Affaires Greenscape Group The Residence Greenscape Group The Springs Greenscape Group tips for eco-friendly home tips for interior design TIPS TO BOOST ROI FOR YOUR COMMERCIAL REAL ESTATE Tips to create a Zen Corner in your home title Top Interior Design Trends of 2022 trends in real estate market twitter unique office plants v vastu tips vastu tips for apartment vastu tips for flat vastushastra vastushastra for home villa for sale weekend home destinations near Navi Mumbai What is Virtual Real Estate what motivates millennials in the workplace work from home workplace for millennials WORKPLACE TRENDS POST-PANDEMIC Workspace Tips for Better Mental Health ZERO-RENTAL FLATS