Economic Survey 2023: Vaccination coverage led to migrant workers returning to construction sites fueling the housing market

Vaccinations have facilitated the return of migrant workers to cities to work in construction sites due to rebound in consumption which has had a ripple effect on the housing market, the Economic Survey for 2022-23 tabled in Parliament said on January 31.

The inventory overhang in the housing market has also witnessed a significant decline and fell to 33 month in Q3 of FY23 (October-December) from 42 months last year,  it said.

“The 'release of pent-up demand' was reflected in the housing market too. Demand for housing loans picked up. Consequently, housing inventories have declined, prices are firming up, and construction of new dwellings is picking up pace. This has stimulated innumerable backward and forward linkages that the construction sector is known to carry. The universalisation of vaccination coverage also has a significant role in lifting the housing market as, in its absence, the migrant workforce could not have returned to construct new dwellings,” it said.