The real estate sector is one of the lucrative investment options with higher yields. However, pandemic tenure hampered certain developments in the sector for the last two years. Despite the uneven path and unpredictable situations, the sector has gained momentum with consistent trust by investors and customers. The housing prices were affected in the first wave of pandemic nevertheless, the customers’ behavioral pattern towards housing ownership assisted in the revival of real estate. Pandemic has made people understand the importance of owning a home at a suitable location for their safety. Ending the year 2021 on a positive term, real estate is bound to have an optimistic future in 2022.
Digitization – A new trend of digitization emerged and flourished in the real estate sector due to pandemic. People are seen taking interest in the online buying and selling of homes. Maximum people are searching for a home online and have confirmed house tour through an online medium than personal visits. Since then, developers began to imbibe and utilize technologies and digital mediums for approaching customers in a convenient mode. This was a major turning point for the sector that assisted in regaining its pace. The visual walkthrough, online meets and site visits gained positive responses from the potential customers. Digital medium poses no barrier for customers as well as developers, also it is safer and reliable against the backdrop of situations like pandemic.
Sales momentum – As per the Knight Frank ‘2022 Outlook Report’, the sales momentum that began to recover since the beginning of 2021 will continue in the coming time. The need for a tangible asset in the form of a home is flourishing among people. The housing sales soared by 92% in the major eight cities which surpassed the pre-pandemic average rates by 4%. The government’s supportive policies and reductions led to increased demand for homes. Moreover, people’s aspiration for spacious apartments, better amenities, lucrative rates and assured foreseen growth will keep the demand for residential properties reviving in 2022.
Buyer’s preferences – Pandemic tenure has made people more aware of fitness and a healthy lifestyle. It has highlighted the importance of a proper neighbourhood and vibrant community. They are conscious of the availability and quality of amenities within and surrounding a residential premise. A sublime location with proper connectivity and public utilities are preferred majorly. More than 70% of aspiring buyers are prioritizing greenery and open spaces surrounding their spacious apartments. Gated communities with all required facilities at par with security, health and leisure are what people are looking for now.
Property rates to increase – The property seems to be increasing in 2022 with people being interested in a spacious home and better amenities. The demand and sales of mid-segment and high-segment houses were seen increasing since last year. Buyers prefer a lucrative priced property with assured growth and a healthy lifestyle. The residential projects with spacious apartments, secured premises backed with necessary amenities, augmenting location keep buyers interest sealed. Owing to increasing input costs, the prices are meant to increase by 5-10%.
NRIs investment – Pandemic has changed people’s perspective towards owning a home. They aspire for a safe abode to lead a healthy life without any glitches in such adverse situations. Significantly, NRIs tend to search for a perfect home in their native place, their own country. The flexibility of the stock market, depleting currency value and affordability in property prices are attracting maximum NRIs towards the Indian residential sector. Technology has also been a game-changer here, as it has made meetings, visual tours, documentation and payments possible at one click. NRIs are opting for purchasing their property than renting out in their native place, owing to the pandemic situation and favourable investment conditions in the Indian market.
Owing to these factors, the residential section of the Indian real estate sector will continue to surge in 2022. Besides the new variant of the pandemic, there doesn’t seem any major fallout for the growth of the sector. Moreover, people are more interested in owning their own house while the housing segments are offering lucrative pricing and the government’s policies are favourable to them. As demand for houses in tier 2 cities is rising and those cities are expanding into tier 1 cities, there is a positive opportunity for developers to experiment in and explore new markets.
