The Covid-19 virus is threatening to attack again. Doctors rule out major problem to people due to the new variant. However, what is alarming about the new variant is the rapidity with which it spreads among the people. Further, several predict that it would have no impact on India as the immunity power of people increased enormously following the vaccination against the Covid-19.
Will the new variant impact the demand for houses in the real estate market? Before we attempt to answer the question, we should go down the memory lane during the past two years. When the Covid-19 was at its peak in the country, several have speculated that the real estate sector will bomb under the virus’ impact. But, their predictions have gone wrong. Moreover, the demand for houses increased across the nation. Compared to the demand in 2021, the demand for houses in 2022 increased by 50 percent.
However, in cities like Mumbai and Pune the houses sold were more than 56%. During 2021-22, people have developed a strong feeling to own a house. The work from home introduced as an offshoot of Covid-19 situation, people are inclining more towards buying bigger houses. Even after the Covid-19 scare got over, several have opted for hybrid working model. The employees are accustomed to working from home culture. In this backdrop, the people are looking for houses with all amenities. At the same time, some others with an eye to cash in on the trend have started investing in big houses. Therefore, during the pandemic situation too, the demand for houses has increased manifold.
What would be the fate of realty sector in 2023?
In spite of the fact that the real estate market moved on a positive note during the Covid-19 situation, the market is likely to face several upheavals in the New Year 2023. The war between Russia and Ukraine compounded the problems in real estate sector due to increase in the cost of building materials. The RBI revised the repo rate many times to check the inflation in the country.
The real estate developers have increased the prices of the houses on account of hike in the cost of building materials. Under this backdrop, several employers, due to conditions prevailing in world, resorted to job cutting. This aspect is likely to affect the sale of houses. Therefore, the number of transactions in the New Year is likely to decrease compared to the transactions undertaken in 2022. Even if the house sales go down, the new variant of the Covid is not likely to be the cause.
