The Omicron COVID version will not have an immediate influence on the real estate market: CREDAI
The apex association for property developers emphasizes that the long-term impact is still to be determined
A top organisation for real estate developers in India, CREDAI (Confederation of Real Estate Developers’ Associations of India), doesn’t really expect the Omicron Covid version to have a “instant impact” on property bookings.
Prices could increase
Although apartment prices are predicted to climb by 5 to 10% at the end-user level, partly to balance a comparable or “more than that” increase in cost of raw materials, reservations of existing homes or the opening of new ones are unlikely to suffer direct consequences.
“Omicron’s long-term influence has yet to be determined. However, we must not expect a decrease in reservations or new property openings as a result of the change. “The celebratory spirit is anticipated to last for a long time,” CREDAI President Harsh Vardhan Patodia stated.
Notwithstanding the “potential of an upsurge at the end-user level,” Patodia said that property reservations had remained at pre-Covid levels. Buyers may observe a larger (over 5-10%) price increase due to micro-market movements.
Sales are expected to increase
Advisors in real estate Given the large second wave of the Covid epidemic, Knight Frank India recently predicted that real estate sales will exceed the 2020 level this calendar year, owing to pent-up demand, festival sales, the steady recovery of India’s economy, a healthier labour market, and low home loan interest rates.
The S&P BSE Realty index surpassed the 4000 milestone on Friday. This index, that includes businesses like as DLF, Oberoi Realty, Sobha Developers, and Godrej Properties, finished up 2.90 percent at 4,081.
Durable market
The property market appears to have a strong feeling that the real estate cycle, which saw a turnaround from the Christmas season, is indeed a durable one, according to Sharad Agrawal, Executive Director – Capital Markets, Knight Frank India. And this would persist for a while.
“Even as cycle develops, we anticipate demand to grow more widespread.” We’re also seeing a resurgence of pricing power in the hands of property developers, accompanied by robust volumes. It has resulted in a re-rating of the industry, which drives the real estate index,” Agrawal explained.
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