New Delhi: Although Covid-19 caused severe economic repercussions in April and May, signs of demand recovery in residential real estate were visible in June, as the latest Magicbricks PropIndex Q2 (April-May-June) 2021 suggests
The demand for housing in June’21 rebounded to the March’21 levels despite the slump during April and May.
Due to the intermittent lockdown caused by the second wave and the continuation of Work-From-Home (WFH) policies, home buyers are looking to upgrade to a 3BHK or above to accommodate a home-office requirement.
Due to this shift, the demand share of 3BHKs and higher configurations has risen significantly in Delhi-NCR, Hyderabad, and Kolkata, reaching an all-time high of more than 65% of the total demand share in these markets.
Sudhir Pai, CEO of Magicbricks, commented on the PropIndex report, “Unlike the first wave, the recovery in residential property demand has been faster.”. Residential markets in Bengaluru, Chennai, Thane, Noida-Greater Noida, Kolkata, and Delhi experienced price corrections ranging from 1%-2.3% during the quarter along with rising medical expenses. Even in these tough economic times, the housing sector has shown resilience. There was also a significant increase in supply across the country by almost 8% due to new launches, with Hyderabad seeing the highest jump of 20%. The sector is experiencing a recovery due to factors such as a consistent demand for large size properties and a higher flow of global PE funds. “This rapid recovery indicates an increase in industry stability.”
Middle- and low-income buyers, who usually opt for smaller homes with fewer features, were most affected by the crisis. Most premium and high-income buyers were relatively less impacted by the crisis in terms of money flow. During Q2 202, the demand for smaller houses fell, whereas the demand for bigger houses persisted.