Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

Spike in COVID cases and fear of second wave may impact recovery in the real estate sector: CARE Ratings

For commercial units, the demand would continue to remain subdued during financial year 2022 with emerging work from home and shared workspace culture.

In a city like Mumbai, people want to live in the city’s centre and enjoy the vibrant culture.

In a city like Mumbai, people want to live in the city’s centre and enjoy the vibrant culture.

The recent spike in COVID-19 cases in the country and fears of second wave might hamper the recovery in the real estate sector witnessed in the last six months, an analysis by CARE Ratings has said.

Even with the Maharashtra government, not extending the window of low stamp duty benefit could potentially affect homebuyer sentiment, it said.

The Maharashtra government on March 31 decided not to extend the stamp duty waiver on property registrations and kept the Ready Reckoner Rates unchanged for the financial year 2021-22.

On August 26, the state government decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020. Stamp duty from Jan 1, 2021, until March 31, 2021, was at 3 percent.

As for commercial units, the demand would continue to remain subdued during financial year 2022 with emerging work from home and shared workspace culture. Office rentals is to be impacted with the emergence of Blended Work from Home culture, the analysis said.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

However, despite the emergence of concepts of work from home and work near home, occupiers with healthy financial profile in grade A office spaces have continued to meet their existing leases and commitments on time which will not impact leasing agreements, the analysis said.

In the case of mall leasing, malls too have been witnessing very limited footfalls with the resurgence of the virus and the outlook for the segment thus continues to remain negative especially with growing popularity of e-commerce, it said.
Moneycontrol News
first published: Apr 13, 2021 08:32 pm

stay updated

Get Daily News on your Browser
Sections