India's Real Estate Sector Showing Positive Signs Of Growth In 2022

During the past few years, the Indian housing sector has embraced digitalization and innovation. Buyers are seeking out the best-in-class amenities. The real estate sector gained the confidence of buyers and investors and accelerated the growth process.

A healthy rebound was recorded in the real estate sector in 2021.

Real estate recovered the trust of buyers and investors with the steady performance quick recovery and further accelerated growth. India's real estate sector is expected to show healthy growth in 2022, according to Knight Frank's 'Real Estate Outlook 2022'.

Residential sector - According to the Anarock report, the residential sector has seen a hike in a new supply of 27% over the full-year supply in 2020, while the sales have also increased by 5%.

Mohit Goel, MD, Omaxe Ltd. commented on the sector's performance, "2021 has been an eventful and challenging year for the real estate sector. In the wake of the pandemic, the real estate sector has seen a strong rebound. With the strong economic growth, the sector quickly picked up the momentum. The pandemic-induced trends in conjunction with low-interest rates, affordability, and other factors expanded the real estate growth in tier 2/3 cities, which is expected to lead to economic growth over the next few years. The continuing growth of hi-street and multi-purpose commercial properties has caught the attention of investors and shoppers. In residential projects, large-sized homes are becoming a popular choice and will continue to do so in the years ahead. With strong demand, evolving trends, and new emerging markets driving the sector's growth, the year ahead is positioned to be an impactful one for the real estate market."

Digitalization and innovation in the housing industry have been quick to spread, as well as a shift in demand where best-in-class amenities are increasingly popular among buyers.

The Managing Director of Krisumi Corporation, Mohit Jain, commented on the current trends and customer preferences, "Working from home has emerged as a significant trend for shaping homebuyers' preferences. We expect buzzing sales activity to continue, the city's periphery to maintain its top ranking, and the flexibility of work options to continue to shape housing choices."

CEO of Smar tworld Developers, Vivek Singhal, said, "The pandemic has reshaped real estate patterns and has underscored the importance of individuality and customer-cantered features in the industry. Innovation and digital transformation will drive the boom of this sector in the years to come. 2021 has accelerated a preference for independent floors located in gated communities. We predict that demand will continue to grow in the years to come."

Despite the pandemic, the low-interest-rate environment and the rising demand for larger homes helped to spur price and sales growth in the real estate sector this year, according to Pankaj Bajaj, MD, Eldeco Group.

"Housing demand is expected to reach the pre-COVID levels in the next two to three quarters, while rates are likely to rise by 5 percent in 2022. However, new variant threats are contained adequately with minimal disruption during the first months of the year," said Rahul Singla, Director, Mapsko Group.

This year has been unexpectedly good for real estate, particularly residential. After the pandemic, low mortgage rates and a surge in home sales have been catalysts, resulting in price and volume increases, said Pankaj Bajaj, MD, Eldeco Group.

"Housing demand is expected to reach the pre-COVID levels in the next two to three quarters, while rates are likely to rise by 5 percent in 2022. However, new variant threats are contained adequately with minimal disruption during the first months of the year," said Rahul Singla, Director, Mapsko Group.

Commercial segment - According to CBRE report, there were 13.5 million square feet of offices leased. With a q-o-q growth rate of about 140 percent in Q3 2021, commercial real estate is showing healthy growth. Here are the opinions of industry experts.

High-end retail spaces- are in high demand due to customers returning to physical shopping destinations. Retail leasing activity reached 0.6 million square feet in 2012. Grade A malls and high streets experienced a quarter-on-quarter growth rate of nearly 165 percent in Q3 2021.

"The real estate market, which is second only to agriculture in creating employment, is constantly expanding. Small and mid-level investors have tremendous opportunities to grow their portfolios." Pankaj Bansal, Director of M3M India, added, "The market is constantly expanding. There are tremendous opportunities for small and mid-level retail investors. The real estate sector, the second-largest employment generator, will also continue to create jobs."

Rash Kapoor, Managing Director of Elan Group, said, "It is estimated that business transactions will gradually accelerate the growth of the retail sector, generating increased demand for retail spaces like stores and malls. Large-scale institutional investment is expected to accelerate the growth of India's commercial real estate market in the coming years." Indian Real Estate Market In 2022