The pandemic has kept potential homebuyers and real estate investors on the lookout for real estate trends. The pernicious effects of the pandemic have been witnessed worldwide across various sectors – the housing market happens to be one of them. The Indian real estate sector lacked immunity to such a cataclysmic event. While we made a positive move towards 2021, there have been concerns for 2022 regarding the consequences Omicron might bring for the various sectors. Experts have set forth a positive tone for 2022’s housing market.
Following are some of the predicted real estate trends for this year:
- The expert prediction states that the latest supply and sales in the housing market ‘might touch 2019 levels’ by 2022. Rates of interest might swell up steadily from the second half of 2022. The sector is predicted to witness the participation of “big players”- mainly Grade A and organized developers- who will seize more market share from unorganized and minor players and continue to influence the real estate market. There is anticipation that the mid-end and high-end housing segment will consistently steer the bulk demand.
- Property consultants further put forth an opinion that the real estate residential segment may witness around ‘5% capital value growth in the year 2022’. Reports have reflected the upward pressure on the prices of residential properties assessed & evaluated over the last decade. This upward trend is mainly associated with various supply and demand-side factors. It has been in anticipation that the residential sales growth will continue to grow in 2022 due to shifting preferences for bigger homes, attractive pricing, and desirable amenities of the prospective buyers. As these preferences are gaining popularity among the homebuyers, They are becoming more aware of the suitable options and more interested in sealing the dealings. Moreover, the prices for the residential sector are expected to appreciate by 5-10%.
- 2021 witnessed an upsurge in the sales of luxury residential properties in and around Mumbai and Delhi. One of the several real estate trends expected to crawl their way into 2022. Circulation of news regarding the upcoming ultra-luxury residential apartment and similar projects have spread a tinge of excitement among the potential buyers and investors. Despite struggling with various challenges concerning the delay of supply of high-end floors in the Delhi market, the overall outlook of the ultra-luxury market in 2022 remains robust.
- The past few years have recorded a contraction of the gulf between rental yield and FD rates of banks that might contract further in 2022. Formerly, rental yields in Mumbai recorded a low of 1.5-2% that has swelled up to 3-4%. Simultaneously, the interest charged in bank FDs has shrunk from 8-8.5% to around 5-6%. The shifts in the financial sector have reduced the deferring incentive to purchase a property significantly. Potential homebuyers are looking forward to acquiring residential properties and refuse to postpone their decisions given the favorable banking and rent-yielding opportunities.
- The existing pandemic-related curbs and the continuation of ‘work from home’ are playing a pivotal role for builders and contractors to promote multifunctional homes. Sectoral experts opine that this trend will continue to exist next year too. The pandemic has taught several lessons to each working field. The year 2021 allowed us to explore various unique marketing methods and tools through which we can virtually appeal to the customers.
Moving forward, several real estate market trends from 2021 will spill over in 2022 as well. To conclude, 2022 might be a year of steady growth, probably slower than the last two years. Furthermore, the real estate market will witness favorable for sellers this year. Provided the confidence built by 2021 in the wake of the pandemic and the flattering interest rates for homebuyers, we can expect an upsurge in sales in the coming year.