Indian housing sales volume is expected to rise by 5-10 percent in the current fiscal year across six big cities in the country, but demand will reach pre-Covid levels only after two years, according to a report prepared by rating agency Crisil.
“Improved affordability and continuing work from home will increase demand for residential housing by an average 5-10 percent in terms of area though a few major cities like Mumbai and Pune could see a demand contraction,” the Crisil report said.
The cities of Mumbai and Pune could see a demand contraction of 10-20 percent, after recording growths of 5-15 percent in the last fiscal year.
“The demand in the first half of fiscal year 2021-22 will be impacted by the second wave of the pandemic but a healthy recovery is expected in the second half,” the report said.
It said that the affordability index of residential houses in the six cities improved 30 percent over the past five years because of low interest rates and price corrections.