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TEAL Analytics Report – Pan India Covid-19 Impact & Recovery

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The nationwide complete lockdown and the subsequent curfews hampered property sales volume, even coming to a near-halt in April 2020.

The Covid-19 pandemic caused significant disruptions to the Indian real estate market in 2020 and early-2021.

The nationwide complete lockdown and the subsequent curfews hampered property sales volume, even coming to a near-halt in April 2020. As the nation was recovering from the first wave of the pandemic, the second wave in 2021 further impeded property sales in the second quarter of 2021.

“The real estate market in India had a better response to the second wave of Covid-19 pandemic in comparison to the first wave impact in 2020. The effective measures taken by the Central and State Governments in the form of subsidized housing schemes, policy changes and tariff concession after the first wave in 2020 helped lessen the impact of the second wave and also enabled quicker recovery”, said Rohan Sridhar, Co-Founder and COO at Terra Economics and Analytics Lab (TEAL)

Pune and Coimbatore recorded higher property sales numbers towards the end of 2020

According to TEAL data,  the property sales numbers recorded in Pune and Coimbatore post-lockdown were higher than the numbers recorded before the lockdown in 2020. Coimbatore witnessed a 52% increase in property sales transactions in Q4 2020 compared to Q1 2020, and Pune recorded a 200% increase in Q4 2020 compared to Q1 2020.

Delhi and Bengaluru also recorded efficient property sales recovery in 2021 post the second wave of the pandemic  – registering a 22% and 28% increase in Q3 2021 compared to Q1 2021 respectively.

What explains the lower impact and quicker recovery in 2021?

Post the economic disruption caused by the pandemic in 2020, the Central and respective State governments took several steps to revive the economy in the form of stamp duty holidays, circle rates cut, historically low interest rates and reopening of the job market. Further, the pent up demand from the previous months and the pandemic-induced work from home culture where people realized the need for additional home space also played a role in the active real estate market in 2021.

Mumbai records the highest median property listing price

TEAL data shows that property listings in major cities also witnessed an uptick in June 2021, right after the end of lockdown. Mumbai recorded the highest median property listing price of all major cities in 2021 – before, during and after the second wave lockdown. As a general trend, most of the major cities recorded higher listing prices after the lockdown period in 2021.

October 2020 – March 2021 recorded higher mortgage transactions

To mitigate the impact of the Covid-19 pandemic on the economy, the RBI reduced its repo rate to 4% in April 2020, and has remained unchanged till date. With the picking up of vaccination drives in the nation and other active measures to boost the economy, the mortgage market in India witnessed an upswing in the later part of 2020 and early 2021 – till the onset of the second wave.

DISCLAIMER: The views expressed are solely of the author and RealtyNXT.com does not necessarily subscribe to it. RealtyNXT.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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