Housing prices beginning to firm up after 2-year COVID lull: Economic Survey
The Hindu
India's residential market has witnessed recovery with an increase in housing sales, according to the Economic Survey tabled in the Parliament
Housing prices have started to firm up after a two-year COVID lull and unsold inventories have declined on the rise in demand, the Economic Survey said on January 31, as it anticipated a decline in prices on the back of a cut in import duties on many construction materials.
India's residential market has witnessed recovery this fiscal on pent-up demand with an increase in housing sales despite impediments like rising interest rates on home loans and appreciation in property prices, said the Survey which was tabled in Parliament.
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The release of "pent-up demand" was reflected in the housing market, as demand for housing loans picked up, the Survey noted.
"Consequently, housing inventories have declined, prices are firming up, and construction of new dwellings is picking up pace and this has stimulated innumerable backward and forward linkages that the construction sector is known to carry," the document said.
Housing prices have risen due to an increase in the construction cost amid the Russia-Ukraine war that hit the global supply chain, the Survey said.
The Russia-Ukraine conflict affected the supply chain, resulting in price escalations of key building materials like steel, thereby increasing the overall construction cost and resulting in a rise in housing prices, it added.