A robust vaccination program, decline in new Covid-19 cases, and amazing offers made by real estate developers, all have been the main demand drivers for real estate in 2022. Further it paved the way for a promising real estate sector in the future. The Indian real estate market has witnessed a new era of development, powered by digitalization and booming market demand. Close to two years into the pandemic, real estate now is booming and coming back to its normal. Today, the consumer mindset has witnessed a significant change and brought segments like affordable housing and mid-segment homes into
Emerging Trends in 2022
In 2021, the affordable segment was one of the main consumer trends. More than half of the housing demand is driven by the affordable housing segment. As a result of this development, the developers were considering all the options to optimize costs by using the best technology and innovation in the digital space. This will keep the segment afloat in the future and will assist in meeting the growing demands of the buyers. The demand for housing stands redefined after the COVID-19 pandemic. There has been a significant shift in the mindset of people and they look for residential real estate investments, at least in the urban cities. Many factors have driven this changing trend. During the first phase of the pandemic, we witnessed much severe wealth erosion across other investment classes, like gold, shares, and mutual funds. However, only the real estate was strong and withstand the challenge. Many people who own apartments were treated differently by the housing societies during the pandemic, and this played a crucial role in triggering the need to own a home.
Urban Demand
Within the metropolitan and major cities, there is a significant increase in housing demand in peripheral locations due to better connectivity and reachability. The metro rail network across all the major cities witnessed an expansion and will improve the connectivity of the peripheral markets in the coming years as well. This resulted in improved demand for housing in newly evolved geographies. As of Q3 2021, close to 70% of the total launches were in the peripheral regions and this share is expected to grow in the future as well. This has also encouraged many developers to come up with new projects in the peripheral areas, thus offering home-buyers better investment options like never before.
Over the last few years, the western markets including Mumbai Metropolitan Region (MMR) and Pune enjoyed the maximum share of the market in terms of launches and sales. The diverse economic base and presence of several renowned developers in these cities improved the buyers’ confidence.
Focus on Sales
On the other hand, the National Capital Region (NCR) in the North zone consisted almost 15% share of the launches and 17% of sales. The share of sales and launches also witnessed a significant increase post-pandemic. With the foray of large and listed developers into the NCR, the future of real estate market is expected to change soon.
Certainly, the residential real estate market will expand in the coming years. 2019 was the new peak for the residential segment post; however, the COVID-19 pandemic temporarily paused the expansion of the real estate sector in 2020. The sharp recovery in the real estate sector is an indication that the same will continue to rise in 2022 and beyond. However, there might be slowdown to some extent if the interest rates increase. The prices might shoot up in the future but the growth will be more rational.
The residential segment across the country is witnessing significant changes and inspiring more people to own a hard asset. Prices are likely to increase in the future as demand rises with the receding pandemic and improving economic situation.
Considering the present trends and falling COVID-19 cases, the ongoing quarter is expected to see incredible growth in the real estate sector with more families looking for affordable housing options. If you are among the one looking to dive into the pool of opportunities but don’t know where to invest in, contact Th Heena Realty Makers for getting the best real estate investment consultancy.
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