Coronavirus had such a suffocating effect on the Indian real estate market that it brought property transactions to a halt when the country was put on lockdown during both waves. Since then, the market has made numerous steps toward recovery, and just as it appeared that a recovery was on the horizon, the country is hit by another strain of the virus, Omicron.

According to recent data accessible, the average value of homes in India’s eight top residential markets increased somewhat during the April-June 2021 period. While certain cities, like Hyderabad and Ahmedabad, have witnessed a 5% increase in new apartment pricing compared to the same period in 2020, other cities have seen far lesser increases. With the exception of the Mumbai Metropolitan Region, prices have risen marginally during a period when the second wave of the Coronavirus pandemic wreaked havoc on the economy.

The impact of COVID-19 on Indian real estate has been extraordinary, as evidenced by the fact that the sector has lost over Rs 1 lakh crore since the epidemic broke out (Source: KPMG). The pandemic, according to the research, caused a major financial crunch for real estate developers. The loan crunch reduced residential sales in India’s top seven cities from four lakh units in 2019-20 to 2.8 lakh units in 2020-21.

Lockdowns and movement restrictions imposed by COVID have forced every industry to adopt a digital business model. Real estate websites and other tools have been used by prospective house buyers and sellers, tenants and landlords, and middlemen for a few years, but the pandemic has pushed it to the next level.

People require greater room in their houses, particularly as a result of online education and work-from-home opportunities. According to Square Yards’ online search patterns, demand for modern flexible room arrangements like 1.5BHK has increased by 54 percent since COVID compared to 1BHK, while 2.5 and 3.5 BHK houses have increased by 150 and 132 percent, respectively, across the top six cities.

The COVID-19 pandemic has caused a shift in consumer behavior, kindling a desire for instant homeownership and generating a need for large areas that improve quality of life without sacrificing luxury.

In addition to having both a negative and positive impact on home sales, the work-from-home concept has harmed the growth of office space leasing organizations. According to a Cushman and Wakefield report, net leasing of office spaces fell to over 35 lakh sqft in January-March 2021, down from around 70 lakh sqft in the same period of the previous year.

Conclusion

There will be a shift in how people think and live after COVID-19. Buyer mood will undoubtedly be affected. Job insecurity, reduced salaries, savings, and business volumes have all disrupted cash flows to the real estate business. On the plus side, the real estate industry has been quick to adapt to changes and new technologies, as seen by the digitalization of numerous procedures.

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