COVID 19: The 2nd Wave & Its Impact On The Real Estate Sector
With the precautionary measures and revival reforms, the real estate industry witnessed historic sales over the course of the last three quarters. However, the second wave of COVID-19 in the country has dampened the future hopes of the swift growth of the real estate sector.
A sharp surge in daily cases has led to stricter lockdowns in many states. As per some reports, the pace of business activity resumption has taken a huge knock due to the mobility restrictions. Since the 2nd week of April, the economic situation has gone worse and the overall impact is likely to negatively affect the GDP growth in the first quarter of this year.
The one important aspect which is being discussed & debated is about the prices; will they fall further during the 2nd wave? Well, as per my views, the prices won’t drop from here but will remain stagnant at the current levels for a medium-term and then will grow again.
Despite the large drop in home sales due to the second wave, the real estate activity will improve as the wave will reside. We are hopeful that the sales will reach the pre-pandemic level by the mid of summer. Potential buyers will start to increase their housing search and purchase activity by the end of May.
I believe this is a temporary phase and with the foresight of the first wave and the precautionary measures introduced by the government, the real estate will hopefully maintain its stability. The government’s decision to initiate a wider vaccination drive will help in mitigating the impact of the 2nd wave while mobilizing the sectors to push the economy further on the growth track. Our sector has seen a strong bounce-back during the last few quarters, which has kept the sentiments of the stakeholders in the positive zone.