Real estate activity picks up in June
With most of the states reduced travelling restrictions amid a dip in the number of daily new infections, the demand in real estate has seen a pick-up in the month of June as reported by PropTiger.com.
As stated by the report, titled Real Insight (Residential) – April-June (Q2) 2021, as states started to remove restrictions, half of the sales in the April-June quarter of 2021 took place in June itself.
Though demand and supply both remained adversely impacted during the first two months of the quarter, to contain the virus spread most of the states remained in partial lockdowns, home sales and new launch numbers started to pick up in June, with the gradual lifting of restrictions.
During the April-June quarter of 2021, the situation became challenging when casualties caused by coronavirus hit both demand and supply during the first two months when most states put in place various restrictions to curb the spread of the virus.
Dhruv Agarwal, Group CEO, Housing.com, Makaan.com & PropTiger.com said, since India’s vaccination programme is likely to gather pace, we may see improvement on both indicators of residential real estate health in the upcoming quarters.
In spite of the lockdowns, the government offered the sector a much-needed boost with the passing of the Model Tenancy Act which is expected to give a fillip to the rental housing supply which is in need in the country. Maintaining the repo rate and reverse repo rate at a status quo of 4% and 3.35%, the RBI is also continuing to keep its accommodative stance, which in turn would allow the low mortgage interest rate regime for homebuyers to continue. These measures with latent demand will help our sector to bounce back faster than what was anticipated earlier, he quoted.
New supply remains resilient amid the second wave; shows 74% surge in YoY in Q2 2021
The economic uncertainty caused by the second wave of virus has pressured real estate developers in India to adopt a more cautious approach towards spending, which is reflected in new supply numbers for the April-June period (Q2) of CY 2021.
Supply of new apartments in India’s eight prime residential markets saw a decline of 59% when compared to the January-March period of this year, as in this period there was a high number of infections and fatalities caused by the virus spread.
The second wave has only strengthened people’s resolve to seek out real estate assets as per the report coming. People are conscious about the size of units and the health amenities given to them in the residential projects. Also, they are looking for long-term financial security in real estate, said Yash Miglani, MD, Migsun Group.