While the Covid-19 pandemic has negatively impacted most business sectors, the housing sector in Karnataka’s Bengaluru district did not suffer, according to the 2021-22 Economic Survey, Times of India reported.
Contrary to common expectations that housing prices would fall, the survey states that the prices increased during the first and second Covid-19 waves. According to reports, there was an increase of 2. 7% and 5. 3% in housing prices during the first financial quarter of 2020 and 2021 respectively, over pre-pandemic levels of the first financial quarter of 2019.
This positive trend for Bengaluru, where the composite index for June 2019 was pegged at 113, June 2020 at 116, and June 2019 at 119, as per the data from Housing Price Index (HPI) of National Housing Bank (NHB).
This rising mobility in housing prices were also reflected an increase in housing transactions, which rose by over 40% during the second wave (April-June 2021) over pre-pandemic levels of 2019’s first financial quarter.
Despite Covid-19’s devastating impact on the Indian economy, the report suggested that pentup demand and improvement in affordability in response to measures taken by the government like lowering interest rates, reduction in circle rates, and cut in stamp duty, made houses affordable to buyers.
(Inputs from TOI)