JOIN USIndia's home buying hit by third Covid-19 wave: Report
The third wave of the Covid-19 pandemic has hit India's real estate industry, as sales of houses have been severely dented.
With worries over cases and restrictions on mobility causing delays in site visits and decision making by buyers, developers expect the buying momentum to regain normalcy only by February-end or in March, according to a report by Mint.
The March quarter is considered a strong period for residential sales, helping developers meet their annual guidances, the report said.
“Despite the fact that the impact of the third wave has been mild so far, there would be some setback for a while. But it will be short-term and we expect overall demand will come back by late February. Real estate or home-buying is sentiment-driven so there will be some delay in the buying process," Niranjan Hiranandani, vice-chairman-national, Naredco, and MD, Hiranandani Group told the publication.
Housing sales increased to 2,32,903 units in 2021, from 1,54,534 units in 2020, but demand was down 5 per cent from the 2019 pre-pandemic levels and 37 per cent lower than the 2011 peak numbers, Knight Frank India reported.
CMD Shishir Baijal said the housing sales momentum should continue in 2022 unless there is some serious impact of the Omicron variant in the coming few weeks and months.
Boman Irani, president-elect, Credai National, told the publication that the immediate impact of the Covid outbreak has been a drop in walk-ins and site visits, as people are not stepping out due to fear.
“January will be slow and there will be an impact on buying decisions, but it is expected that by March, this will subside and we would close the quarter with a hurrah. Sales are happening but customers are not stepping out," Irani added.
Analysts say the impact of the third wave has been less harsh than before when infections rose sharply and with increased severity, the report said.
“The January-March period is a very good time for sales, but there is obvious hesitation this time. For the last 15 days, there has been a 40-50 per cent fall in transactions because decision taking time has extended. However, virtual meetings have increased by 30-35 per cent. Real estate is a high involvement process and the situation is still unpredictable. But we are expecting things to pick up," said Vikas Chaturvedi, CEO, Xanadu Realty.
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