New Delhi: Due to the Corona epidemic, in the current financial year 2020-21, the sale of houses may fall by 34 percent. However, the demand for houses will increase in the next financial year 2021-22. Banks are seeing the effect of the reduction in home loan rates and due to this, K-shaped recovery in the residential real estate sector could be seen in the next financial year.
According to Fitch Group’s Subsidy India Ratings and Research, the house space (floor space) is expected to decline by 34 per cent year-on-year in the current financial year, which could grow up to 30 per cent in the next financial year. However, the epidemic did not make much difference to the business of large real estate firms and their sales are expected to increase by 14 per cent in FY21, compared to a 49 per cent increase in sales in FY22.
Despite an estimate of an increase in housing sales in the next financial year, India Ratings believes that total sales of homes in FY22 may be around 14 per cent lower than sales in FY 2019-20. In the financial year 2019-20, 32.6 million square feet of residential floor space was sold across the country.
