Impact of COVID-19 Second Wave on Real Estate
Abhishek Jindal, Founder, OwnersTown
How has been the realty scenario before Covid?
From a broader perspective, the real estate markets across various metros, tier 1 and tier 2 locations of India have not been performing too well ever since the beginning of the Covid-19 outbreak last year. Now with the second wave of the pandemic raging in India, the uncertainty in the market has increased to some extent.
What has been the true effect of resurgence of Covid on consumer sentiment?
The virus resurgence has not really hurt the realty sector’s core consumers’ sentiments or created a lot of panic amongst them. Rather, the majority of the aspiring homebuyers and/or property owners are at the moment of the view that India shall be, sooner or later, able to successfully overcome the challenges/disruptions arising out of the second wave, just as our country has done last year (during the first wave of the pandemic). And hence, they are ready to invest in properties as an asset class, to reap good returns over the longer term.
What does the near future looks like for real estate?
Currently, we are observing that while in some parts of the country, apartments are being sold at lesser-than-usual prices; but on the other hand, most of the resale property owners and the completed project owners/developers are not ready to undercut their property rates, but they are still seeing satisfactory demand.
In view of these recent developments, it can be concluded that in the upcoming months of 2021, both the country’s residential and commercial property markets shall continue to witness ‘sluggish stability and growth’, as property transactions continue to happen, even though albeit at a slower pace”.