Residential real estate in India could be adversely affected due to low demand coupled with government tax rebates and incentives for property developers. India is currently accounting for one in every three coronavirus-related deaths reported worldwide each day, according to a Reuters tally. Ashish Nainan, assistant professor at Saintgits stated that, "Normalcy in mobility and housing would remain muted over the next 18 months. But the larger issue of income and jobs also remains muted.
"While the first wave provided some relief to the sector, post the second wave, buyers would become fence-sitters for an extended period."
A Reuters polls of more than 100 property market experts taken 11-24 May showed big upgrades to house price forecasts for the United States, Britain, Canada, Australia and Dubai compared with just three months back, outpacing expected GDP growth and consumer price inflation.
In April, the finance ministry eased rules for capital expenditure by government departments to try to boost spending in the economy. Pressure also is building on the central bank -- which serves as the banking sector regulator -- to ease loan repayment rules, especially for sectors badly hit by this virus wave.
Earlier this month, the RBI announced several measures to help the country ramp up its healthcare infrastructure to deal with the second wave of Covid in what was seen as a first of targeted measures to address the current predicament that the country is facing. Steps to prop up the MSME sector and financial services sectors of the Indian economy were announced. The MSME sector sustains approximately 20 per cent of total employment, 29 per cent of GDP, 45 per cent of total manufacturing output and 40 per cent of the total exports from the country. Targeted measures, therefore, are the preferred way forward.