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Second Covid wave slows down residential property sales, construction activity in Bengaluru


The onset of the second wave of theCOVID-19followed by the lockdown announced by theKarnataka Governmenthas slowed down theresidential sales momentumand is expected to further delay the construction activity inBengaluru.

According to builders and brokers in Bengaluru, residential property sales have already dropped by 10-15% since the outbreak of the second COVID-19 wave in the city.

“The residential market had really picked up after the last lockdown and today with the pandemic raging in Bangalore along with the proposed lockdown surely the residential market will take a hit on the sales trajectory however the prices should remain in the same band band,” said A A Sheriff, MD, Sherry’s Corp, a real estate broking firm in Bengaluru.

The residential property sales had seen a significant jump in Bangalore over the last three quarters due to record-low interest rates, stamp duty reduction and renewed interest among homebuyers for relatively bigger homes—and then the second wave hit and everything went on pause.

However, some of the residential property firms like Total Environment Building Systems, Prestige Group,

Brigade Enterprises

and Karle Infra have rolled out offers to keep the sales momentum. These builders have started offering schemes like price protection, reduced booking amount till June and refund of the booking amount amongst other schemes to spur sales.

“Since people are at home, and now have spare time due to lockdown, they are searching more and trying to shortlist properties after virtual tours and calls. Some clients are giving a token to block the property, subject to refund being given if they don’t like the property on physical visit once lockdown opens up- and all reputed builders are supporting this scheme,” Bhavesh Kothari, founder of Property First, a property broking firm.

However, industry experts say the inquiry levels continue to be robust and the second Covid-19 wave is expected to further strengthen the demand for residential houses post lifting of the restrictions.

“The site visits that are very crucial for the conclusion of transactions have declined significantly due to the current health emergency in the country,” said a sales head of a real estate firm, who did not wish to be named.

Property sales across the top seven property markets including Bangalore has seen a comeback with sales exceeding the pre-covid level, lifting confidence among realty developers and brokers.

According to Liases Foras, sales witnessed maximum recovery in Bangalore by 72%, followed by NCR 46% and Chennai 40%.

Source

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