Impact of second wave of COVID-19 on real estate and rental income. Model Tenancy Act 2021

The Covid-19 pandemic has battered many sectors of the economy. Real estate is no exception to this phenomenon. The Covid-19 has impacted the property rentals market negatively. Many people went back to their home towns affecting residential rentals adversely. Many businesses have asked people are working from home and some have closed down. It has led to increase in commercial property vacancy rates. However, surprisingly the sale of residential units has done well as many people have bought their own house. In this article, we analyse the impact of Covid-19 on sale of residential units and rentals of residential and commercial property.

The second wave of COVID-19 had a far more devastating impact on people's health than the first one did. However, there was no nationwide lockdown. Instead, many states announced state-level and city-level lockdowns or restrictions. This time, industry and commercial activity were allowed greater flexibility to operate even during the lockdown.  Still, this had an impact on several industries, including real estate. We can break down the impact of the second wave on the real estate industry into three parts: Impact on housing sales: Despite the devastating second wave, the sales of residential units have fared better than expected. They are expected to do well in the future due to a host of factors that we will discuss in detail ahead in the article.   Impact on comm...

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