Sales of affordable homes improving, signalling recovery in real estate sector A significant

The COVID-19 pandemic affected the residential property market during the April-June period last year but sales have improved in affordable homes segment since July onwards, reflecting economic recovery in the real estate sector, according to the Economic Survey.

"The total number of transactions for HPI@Assessment Price reduced by 71% from March 20 to June 20 on Q-o-Q (Quarter-onQuarter) basis while on Year-onYear basis transactions reduced by 67% from June 2019 to June 2020, indicating that COVID-19 crisis has significantly impacted the residential real estate market. New listings were down significantly and buyers also reduced their home buying activity," the survey said.

However, during the quarter July to September 2020, transactions for HPI@Assessment Prices have increased by around 150% on Q-o-Q basis.

"...thus, it is observed that sales have retrieved in affordable segments, reflecting economic recovery in the real estate sector," the document said.

Moreover, the survey revealed that housing loans growth decelerated to 8.5% in November 2020 from 18.3% a year ago.

A significant fall has been observed in housing inflation from 6.7% in 2018-19 to 4.5% in 2019-20 and further to 3.3% in 2020-21 (April-December).

fall has been observed in housing inflation from 6.7% in 2018-19 to 4.5% in 201920 and further to 3.3% in 2020-21 (April-December)