Covid 19 impact on Real estate or Housing sector of India

                           

Impact of First wave & Second Wave of corona or Covid-19 on Indian real estate sector

In today's time every person wants his own house. But this can be possible only if that person has good earning of his own. It is very important to have a good job and a good business to earn well. Ever since the corona virus has knocked in this world, the economy of all countries has been damaged, if we talk about before March 2020, then the Indian economy was growing well and the government of India is also setting a target. It was that every person in India should have his own house. The first wave of Corona shook India's real estate sector. In view of the first wave of Corona of the Government of India, Lock down was announced in India. On hearing the announcement of Lock down, a lot of selling started in the Indian stock market. With this sell-off, there was a lot of fall in the shares of real estate sector companies. But the market recovered with the passage of time and real estate stock had given multiple returns.

The Indian economy had not yet emerged from the loss of the First Wave of Corona that once again Corona knocked and this time the Second Wave of Corona once again indicated to be locked down. But this time the Indian government did not complete the lock down. This decision also brought confidence in the industry. The real estate sector saw a drop in sales of up to 50% due to the corona virus, which was a huge drop as compared to 2019. Real estate experts predict decline to continue by 55% in Q2, 2021. Many real estate experts predict recovery by 2021 and 2022. The real estate sector is projected to reach $1 trillion by 2030. It was also told in a research that the real estate sector can provide more than 6 crore jobs in a few years. This estimation revived the real estate sector. This statement again saw the increasing confidence of the investors in the companies of the real estate sector and the shares of real estate companies registered a huge jump.

Government participation & role of corona vaccination in improvement of Real estate sector:

The real estate sector plays a huge role in the growth of the Indian economy. If we talk about, till 2019, the real estate sector alone has created more than 5 crore jobs, which will be considered very well. Talking about the sectors associated with the real estate sector, then the cement sector, steel sector, paint sector and ceramic sectors are also expected to increase growth, but if the real estate sector does well only then there will be growth in the sectors associated with it. According to an estimate of the Government of India, more than 800 million people will move to urban areas and this is being expected by 2050, if such an estimate is true then it will bring very good growth for the real estate center For this, the Government of India will have to think towards increasing the employment sources, because if people's source of income will increase, then only they will be able to buy their own house and will think of Anne from rural areas to urban area

The Government of India has also changed the thinking of real estate centres by passing bills like Dera. After the Anne of RERA, investors and consumers have also started feeling safe. RERA has also been accepted by all the states of India. According to an estimate, more than 50,000 property agents have registered themselves under this law and 60 More than 1,000 real estate projects have been registered under this law. Talking about the data for April-June 2021, a jump of 5% has also been noted. The princes of properties have also increased in big cities like Mumbai and Ahmadabad. But one rate that has been ruling the real estate sector is the rise of Corona cases in India. Why many medical experts of India also say that the third wave of corona may come in India, but to overcome this, it is very important to increase the corona vaccination rate, the corona vaccination rate in India is still running at a good level. And for this the Government of India is also taking very good steps.

  There is also enthusiasm among people to get corona vaccination, this confidence is very good, to bring India economy on the right track, the more corona vaccination will be there, the sooner industries will be able to start work on their full strength with skilled worker confidence. You will be able to return to your work places. The real estate sector is the only sector that gives maximum employment to skilled labor, so the focus of every government is on the infrastructure sector and housing construction sector.

But still many real estate experts are telling the delay in Anne of Shape Recovery and after some months prefer to name the recovery as Ku shape recovery, experts are not expecting good recovery by doing more till FY 22 Many experts are also saying that the government should work on the tax burden on the home buyer, because in this era of corona, people's income is already a lot of work, Rabi also did not change the repo rate and banks also got home loans Offering at cheap rates.

If we look at all these steps, then every effort is being made to bring back the growth in the real estate sector and this is a good sign that the government is also emphasizing on affordable housing, if all together so much for the real estate sector. If you are doing this, then the management of the companies of the real estate sector should also not make the princes of the houses too high, due to this the sales of their companies will also increase and people will also be able to buy the houses. Indian stock market has seen a sharp recovery.  But right now the Indian economy on track in reality may take time because still unemployment rate is very high in India and government has to focus on it. Indian economic growth cannot be estimated by looking at the recovery of the Indian stock market alone. Even many sari rating agencies are upgrading the Indian growth rate, according to them, more than 12% can be achieved, which will be more than the last years.

In nutshell, we can say that improvement in the Indian real estate sector is expected in coming few months. Even real estate sector stock reacted on it in Indian stock market but still it is advisable book profit on every rise of the market and buy on dip. With the passage of the time & with improvement into the source of income of people, we will again see boom in the real estate sector.

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