How the real estate sector fares in times of war

Sales of homes plummeted back in 1971 Indo-Pak war, due to the tight control on cement and steel by the government. However, this pattern didn’t repeat during the Kargil War in 1999 and is expected to stay that way even if a full-scale war is declared in the future. As per ANAROCK, a well-known international property consultancy firm, the 1971 war had a significant impact on India’s commercial, hospitality and housing real estate.

They also analysed the 1999 Kargil War and found that it had a short but considerable panic in the market, which, once again, impacted the nation’s commercial, hospitality and housing real estate. However, India was able to quickly recover due to a much more resilient economy. With such past data and recent rising national tensions in mind, experts believe that a war can slow the market down for a short period, but it will not be able to sink our nation’s real estate market. A 5-10% short-term dip in residential absorption in Delhi-NCR and the rest of North India may be seen if the skirmish continues for long. Many other experts also share the same view and are emphasising the “wait-and-watch” approach in the short term for buyers, particularly in North India.

Source: Moneycontrol