Economic Survey 2020-21: Residential property market was severely affected in April-June 2020 in the first quarter of the current fiscal year 2020-21 due to corona epidemic but sales in affordable homes (Affordable Homes) segment improved since July as per the annual Economic Survey 2021. This is a sign of economic recovery in the real estate sector. The Housing Price Indices (HPIs) of the National Housing Bank (NHB) is a measure of fluctuations in the prices of residential properties in a single geographical area. Accordingly, HPI increased by 150 per cent on a quarterly basis on the assessment price in July-September 2020.
NHB-Residex prepares HPI on two Housing Pricing Indices-Assessment Prices and HPI on Market Prices. It is prepared on a quarterly basis on the under-construction properties based on the data available in 50 cities of the country.
Housing loan growth declined in November 2020
According to the survey, the total transaction for HPI @ Assessment Price on a quarterly basis in March 2020 to June 2020 had fallen by 71 per cent while on an annual basis the figure was 67 per cent between June 2019-June 2020. It is clear from this that the corona epidemic had an impact on the residential real estate market. According to the survey, due to Corona, new listings decreased in the first quarter of the current financial year and the number of home buyers declined. However, HPI @ Assessment Price Transactions increased by 150% on a quarterly basis from July to September 2020 Which is an indicator of economic recovery.
The survey has revealed that housing loan growth stood at 8.5 percent in November 2020, compared to 18.3 percent in November 2019. Apart from this, housing inflation also fell to 3.3 percent in 2020-21 (April-December), from 6.7 percent in 2018-19 and 3.3 percent in 2019-20.
Aim to get everyone home under PM Awas Yojana
Under the Pradhan Mantri Awas Yojana (PMAY), a target has been set to make everyone available in urban and rural areas by 2022. As of January 18, 2021, 109.2 lakh houses have been sanitized under this scheme. Construction of 1.94 crore houses has been completed since 2014-15. Out of this, 1.22 crore houses have been constructed under PMAY (Rural) and 0.72 crore houses have been constructed under Indira Awaas Yojana Scheme. The target of construction of 2.95 crore houses has been set under PMAY (Rural), of which 1 crore in the first phase (2016-17 to 2-18-19) and 1.95 crore in the second phase (2019-20 to 2021-22) To be prepared
Many announcements made to support the real estate sector
To promote the real estate sector, the Central Government made a number of announcements, including extensions in the registration and completion date of real estate projects under RERA, to promote the real estate sector. In addition, the Ministry of Housing and Urban Affairs has advised the States / Union Territories and their regulatory authorities to consider COVID-19 as an ‘Force Majeure’ event under RERA. Under Force Majeure, both parties are relieved of liability in an out of control situation.