The survey indicates that house prices rose during the first and second waves of covid-19, contrary to expectations that they would fall. It indicates that there was a 2.7% and 5.3% increase in house prices during the first financial quarter of 2020 and 2021 respectively, compared to pre-pandemic levels in the first financial quarter of 2019.
The data of the
This upward mobility in prices is also reflected in an increase in real estate transactions, which soared by more than 40% during the second wave of covid-19 (April-June 2021) compared to pre-pandemic levels in the first quarter. 2019 financial.
The report suggests pent-up demand and improved affordability in response to government measures such as lower interest rates, lower circle rates and reduced stamp duty, have made homes affordable for buyers despite the devastating impact of Covid-19 on the Indian economy. .
Nasir Sharif, co-secretary of the Bangalore Realtors Association India (BRAI), said school and working from home have become a key reason for people to buy bigger living spaces. “Lockdown has actually been a busy time for us,” he said. “There was a 5-10% increase in business, but the availability of good housing options was low in areas near the metro or technology parks. ”
Sharif said the ‘Rs 1 crore plus’ market has done well, but not so economically affordable. However,
But others warn of a future where affordable housing becomes scarce and a home is no longer seen as a necessity. “Developers in Bengaluru are starting to capitalize on the more elite segment of the housing market, for which there are buyers,” said
Speaking of rental transactions,
Mitra said this is a global problem in financialized housing markets, as industry financing primarily seeks high-return projects. The main theme underlying the rise in real estate transactions seems to be that many houses have been bought or sold on new land on the outskirts of the BBMP boundaries, but there is also a shortage of good housing for the middle classes. , said Mitra.