During the pandemic, India’s real estate market held up well, thanks to low mortgage rates and stable property prices. Real estate equities, on the other hand, fell as investors became concerned about the effect of rising interest rates. Mortgage rates would rise in response to higher interest rates, dampening demand. In 2022, India’s real estate business is seeing robust growth in demand which is likely to continue throughout the year. The real estate industry’s entire market forecast is good, from commercial to residential markets. Despite the threat of a pandemic, the industry remained resilient and grew steadily in 2021. For a time, the initial wave of Covid-19 in India brought the industry to a halt. However, by the fourth quarter of 2020, the industry had begun to pick up.
The real estate business market rebounded well as a result of these. The favorable trend that began in 2021 is expected to continue, with the year ending on a high note. Residential sales rose by 65 percent gradually in the year 2021 according to reports. A low-interest-rate environment, flexible property pricing, and appealing offers boosted the sector and the business.
In 2022, the residential real estate business market in India is expected to rise by roughly 5% in capital value. According to some forecasts, sales momentum will pick up in 2022 as potential homebuyers continue to seek larger homes, better amenities, and competitive pricing. Meanwhile, as office employment restarts, the commercial sector’s recovery and the flight-to-quality trend are likely to keep rents stable in 2022, with a rise. Furthermore, in the coming year, the luxury home market is expected to reach new highs.
The cost of purchasing a home is expected to rise due to significant increases in the cost of commodities such as steel, cement, and iron. According to experts, prices are still acceptable, and now is a good moment for first-time homeowners to buy before costs rise even more. According to multiple sources, housing prices will rise and some developers have already factored costs into project prices.
The Indian government has launched several initiatives in the hopes of encouraging people to own real estate. The proposals made in the Budget Speech 2022-2023 will aid in the development of a robust real estate market.
The government intends to place a high priority on affordable housing while also looking for methods to improve. The Indian government extended the deadline for providing 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 main rural scheme, Pradhan Mantri Awas Yojana-Gramin, to meet its aim of building 2.95 crore houses.
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 industry, which has always been the third-largest contributor to economic growth, is predicted to keep growing in 2022.
The real estate industry has also seen the introduction of numerous frameworks, bodies and regulations, such as RERA – Real Estate Regulatory Authority. This initiative was undertaken with the sole purpose of providing property buyers with a transparent purchase experience.
The real estate market is seeing a positive trajectory, in the year 2022, with a high rise in the sale of residential properties as well as commercial establishments. We are already in the mid of the year and we hope to see the same growth in the sector till the end.
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