India’s housing market: The coronavirus induced lockdowns have affected almost all the industries and economic activities and the real estate & construction business is one of them. The construction business was thrashed due to the lack of workers (a majority being migrants) accompanied by sky-rocketing cost of the raw materials. As per the sources, the sales in the construction business went down by nearly 30 percent in the quarter that ended in July.
However, according to Shishir Baijal, CMD, Knight Frank India, mentioned in the report, some macroeconomic indicators have shown marginal improvement.
What are these macroeconomic indicators?
- Upcoming festive season – improved the sentiments of the people.
- After the month of June, the construction activities started resuming slowly.
- RBI’s announcement on lowering interest rates, the reduction in stamp duty and registration charges in many States, and the six months loan moratorium.
Other signs of Recovery
According to the experts, the construction industry will revive with the help of the residential markets as more than 50n percent of the potential homebuyers are expected to buy their dream house in the upcoming six months. Markets in the cities like Hyderabad, Pune, and Chennai will provide indications of relatively healthy inventory management.
Another sign of revival is coming from the under-construction genre as the uncompleted projects are expected to get completed within the next 6-7 months.
Moreover, T. Chitty Babu the Chairman and CEO at Akshaya advised the builders to think beyond the repercussions and understand the changing needs of the potential buyers.
About Chennai Market
The ongoing pandemic has affected the construction & housing market all across the country, however, there is some sign of relief in the real estate business in Chennai. The real estate prices in Chennai remained unchanged between the months of April and June in 2020.
While considering the demands in the real estate business, over 60 percent of the potential buyers were expected to buy homes priced below Rs. 40 lakhs. Thus, confirming the recovery in the mid-segment.