Real estate developers are hoping to see a quick recovery once the second wave of Covid subsidies, similar to the one seen post lifting of lockdown 1.0, due to pent up demand. “Lockdown made people realise the importance of home,” said Kamal Khetan, CMD at Sunteck Realty NSE 2.17 %. “We have seen how people rushed to buy homes once the lockdown was lifted last year. Similar momentum is expected once the current Covidsituation stabilises.”
According to multiple reports by international property consultants, the sales of housing units in the quarter to March had breached the pre-Covidlevels. But since April and May, sales have been impacted by the second wave and recovery is expected after June. “No doubt, customers have become cautious and have deferred their decisions amid the imposition of fresh restrictions by states but we foresee a rapid revival in investor sentiment, followed by the steady growth of the realty sector in H2 2021,” said Rahul Singla, director at Mapsko Group.
The developers are also now better prepared to deal with the ongoing pandemic. “It is a temporary pause but we are in a much better position to deal with the disruption,” said Ashish Sarin, CEO at AlphaCorp. “The Indian real estate sector is now a buyers’ market and the ongoing inoculation programme is boosting the confidence of homebuyers. We will see a steady flow of investments that will ensure growth opportunities with higher returns.”
The real estate sector has lately been growing not just recovering, with high demand for ready-to-move homes.
“Pandemic impacted sentiment and reduced voluntary spending,” said Arman Chaudhry, leadership team member and spokesperson at Omaxe Ltd. NSE -2.24 % “However, people would still need homes built more around their needs, offices that are safe and congenial, and retail spaces that allow safe social relationships, no matter how hard the virus hits in this wave.”
Developers say the situation is not as bad as it was in April 2020. “The real estate sector is better prepared now and has already adapted to digital tools,” said Abhishek Pandey, VP-customer engagement and distribution at Viridian RED. “The impact is likely to last till the second quarter of FY21, after that we hope that the situation starts improving, giving thrust to the sector.”
Source : The Economic Times
