The COVID-19 pandemic has affected many industries, and the real estate industry in India is no exception. From a slowdown in construction activity to a decrease in demand for properties, the pandemic has impacted every aspect of the real estate business in India. In this blog, we’ll take a look at the numbers to understand the impact of COVID-19 on the real estate industry in India.
- Reduced demand for residential properties: The demand for residential properties in India has been hit hard by the pandemic. According to a report by Knight Frank India, the demand for residential properties in the top 8 cities of India fell by 47% in Q2 2020 compared to the same period in the previous year. The report also states that the unsold inventory of residential properties in these cities has increased by 5% in the same period.
- Decrease in new project launches: The pandemic has resulted in a decrease in new project launches in the real estate industry in India. According to the same report by Knight Frank India, the number of new project launches in the top 8 cities of India fell by 54% in Q2 2020 compared to the same period in the previous year.
- Reduction in sales and revenue: The real estate industry in India has witnessed a significant reduction in sales and revenue due to the pandemic. According to a report by ANAROCK Property Consultants, the sales of residential properties in the top 7 cities of India fell by 54% in Q2 2020 compared to the same period in the previous year. The report also states that the revenue of the top 9 listed real estate companies in India fell by 34% in Q1 2020 compared to the same period in the previous year.
- Impact on commercial real estate: The pandemic has also impacted the commercial real estate segment in India. According to a report by JLL India, the net absorption of office space in the top 7 cities of India fell by 30% in H1 2020 compared to the same period in the previous year. The report also states that the vacancy rate of office space in these cities has increased by 1.4% in the same period.
In conclusion, the COVID-19 pandemic has had a significant impact on the real estate industry in India. The reduction in demand for residential properties, decrease in new project launches, reduction in sales and revenue, and impact on commercial real estate are some of the key ways in which the industry has been affected. As the country continues to recover from the pandemic, it remains to be seen how the real estate industry will adapt and evolve to the changing market conditions.
