Data | Demand for new houses dipped during COVID waves, but prices increased

Despite a significant decline in housing transactions, the prices of houses did not fall in most major cities

During the COVID-19 pandemic, the number of houses bought or sold decreased significantly. While demand dropped due to a decline in income levels, construction also reduced due to severe movement restrictions and lack of labour during the first wave. The reduction in both demand and supply led to a sharp decline in housing transactions. The number of in some cities due to pent-up demand and reduced interest rates on home loans. However, despite a significant decline in housing transactions, the prices of houses did not fall in most major cities. In fact, they increased in many major cities

The chart shows the change in housing transactions (in %) during the first and second wave compared to the pre-pandemic levels. During the first wave, transactions declined in almost all the cities analysed.