Despite Corona 2.0, housing demand pick up good for real estate

Despite the resurgent second wave of Covid 19 pandemic, the substantial rise in housing demand in the June 21 quarter bodes well for the growth of residential realty in the coming quarters in FY 2022.

According to a recent Magicbricks PropIndex Report, despite the Covid induced slump in April and May ,the demand for housing in the month of June has rebounded to the levels seen in March. The report has established that compared to the demand revival in the first wave of Corona pandemic, the recovery in the second wave has been much faster. This is reflected through the pan-India price growth of 1.7% for the April- June 21 quarter. The average pan- India?rise in supply during this quarter was almost 8% whereas in Hyderabad, it was as high as 20%. Another encouraging trend witnessed in June quarter was that in the leading residential market of MMR, the inventory overhang at 43 months, came to six year low.?According to a leading property consultancy, residential sales have risen 93% in April- June 21 quarter over the far worse situation in June 2020 quarter.

The Corona setbacks are only temporary. On the other hand, having faced the fury of pandemic people have realized the importance of owning a home. As the second wave subsides, the September quarter should see further momentum in recovery, followed by a festive quarter which like last year should see huge sales.