In 2022, The real estate market will reach new heights
In 2022, India’s real estate sector is seeing a robust growth in demand, which is likely to continue throughout the year. The real estate industry’s entire market forecast is good, from commercial spaces to residential markets.
Despite pandemic challenges, the sector remained resilient and grew steadily in 2021. For a time, India’s first wave of Covid-19 brought the industry to a halt. However, by the fourth quarter of 2020, the market had began to pick up speed, thanks in part to increased demand for residential apartments. The second wave of Covid-19 arrived just as the area was beginning to recover. Unlike the first wave, the second wave had less lasting and conspicuous consequences. Vaccination campaigns and lower illness rates boosted market confidence. In addition, the holiday season aided the sector’s expansion.
The sector made a significant recovery as a result of these causes. The good trend that began in Q3 2021 is expected to continue, and the year will close on a high note. Residential sales increased by 65 percent on a sequential basis in Q3 2021, according to a JLL report. Low interest rates, along with duty waivers (in some jurisdictions), realistic property price, and appealing offers, will assist the business, resulting in cheap synergies.
The real estate index has grown by 75% in the last year and is the second-best performing sector index, outperforming the benchmark index Nifty50 by a wide margin. Real estate has not only made a comeback but is likely to thrive in the coming year, thanks to historically low loan rates and temporary stamp cuts.
The year 2022 will be significant for real estate
In the residential segment, India’s real estate sector is expected to rise by roughly 5% in capital value by 2022. According to some estimates, sales momentum will go up in 2022, as prospective homebuyers will continue to favour larger homes with more facilities, and attractive pricing will keep them interested in closing transactions. Meanwhile, when office employment restarts, the commercial sector’s rebound and the flight-to-quality tendency are likely to keep rents stable and climb in 2022. Furthermore, in the coming year, the luxury home market is expected to reach new heights.
The financial impact
The Indian government has launched a number of initiatives in the hopes of encouraging people to own real estate. The proposals made in the Union Budget 2022-2023 will aid in the development of a robust real estate market.
The government continues to place a high priority on affordable housing while also looking for methods to improve existing financing processes in order to offer liquidity to stalled real estate projects. The Indian government extended the deadline for providing pucca dwellings to all rural families till 2024 in the first week of December. The Cabinet resolved to grant INR 2.17 lakh crore in additional Central and State money to the flagship rural scheme, Pradhan Mantri Awas Yojana-Gramin, in order to meet its aim of building 2.95 Crore houses.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has announced that the repo rate and reverse repo rate will remain unchanged for the tenth time. Organizing the
MPC set the tone for the year by indicating that it is focused on growth. Maintaining interest rates will assist in enhancing consumer affordability and maintaining existing demand trends.
Continued expansion
According to NITI Aayog, the Indian real estate sector would reach a market size of $1 trillion by 2030, accounting for 13% of India’s GDP. The real estate business, which is already the third-largest contributor to economic growth, is predicted to keep growing in 2022.