“While 2021 was affected mostly by the pandemic, 2022 might be a more stable year for both the commercial and residential sectors,” the property consultant wrote in its ‘2022 Outlook Report’. ‘2022 Outlook Report’ from the property consultant says: “While 2021 was primarily impacted by the pandemic, it is likely 2022 will be more stable for both residential and commercial operations.
The pandemic came after a series of structural reforms such as demonetization, GST, and RERA during the last decade. According to the analysis of the 2011 to 2021 period, many of the supply and demand-side factors have begun to exert upward pressure on the price of houses, so we anticipate a 5% price rise in 2022,” the report concludes.
The real estate market is expected to regain its rhythm in the next two to three quarters, despite threats from the newly discovered variant. These threats are contained with minimal disruption in the early part of 2019. If this pace continues, the real estate sector is expected to match or even surpass pre-pandemic levels.A report says that the co-working sector will benefit as the pandemic reinforces the need for agility like never before. According to the report, the return of normalcy will lead to a rebound in demand for flexible office spaces, while the flight to quality trend will keep up-to-date rents in 2022.
In the financial year 2021, the warehousing sector is projected to grow by 20 percent to reach 31.7 million square feet, rising to 45.9 million square feet by 2023. The growth will be driven by e-commerce growth.The Indian data center market houses an estimated 445 MW of critical IT capacity, and after an estimated 290 MW addition in 2022, the total count will reach 735 MW by the end of next year.
The revival of an example
The fact that nearly 2.90 lakh units have been launched in the seven major Indian cities since 2020 and that approximately 2.83 lakh units have been sold is quite interesting to note. This indicates that housing demand has remained steady despite the two pandemic waves that we have faced.
Sales and launches rose steadily following the first wave of the pandemic, with a brief pause during the second wave of the pandemic in Q2 2021. This quarter’s revival was exceptional, with sales volumes doubling in each city compared with the previous quarter. Despite increased sales and launches, the available inventory increased marginally by 3% on year to 65.5 lakh units by Q3 2021. Though there have been highs and lows in inventory levels, they remain comparable with Q3 2019.
The cost of residential real estate has been rising slowly and steadily, though. Developers have been careful to keep prices in check as demand has increased. They are more concerned with ensuring construction continuity and liquidating available inventory. Developers are constantly under pressure because steel prices, cement prices, and raw materials prices continue to rise. The price appreciation has remained modest as of Q3 2021 due to the fact that developers are aware an abysmal price hike will derail the demand cycle.
Many peripheral regions have been able to unlock their real estate potential as a result of mega infrastructure developments across the country and within cities. New markets for real estate across asset classes have been created by large projects such as DMIC, Bharatmala Pariyojna, Industrial parks, and other corridors. These projects also include new roads, ports, and flyovers. Among the asset classes that will witness development as a result of these projects is industrial, warehousing, and logistics, which will eventually lead to the demand for housing.
Concentrate on sales
North zone launches and sales are dominated by the National Capital Region (NCR) at 14% and 17%, respectively. Launches and sales share have decreased marginally during the period. Launches by NCR in 2019 accounted for 15%, but by 2021 this had dropped to 12%. The sale of NCR products also decreased between 2019 and 2021. The situation is likely to change in the future as more large and listed developers make their way into NCR.
As the residential real estate market expands in the upcoming years, it is evident that the demand for homes will increase. The residential segment reached its new peak in 2019 following the reforms initiated in 2015-16. This growth was temporarily interrupted by the COVID-19 pandemic in 2020. It is clear from the sharp V-shaped recovery that continues into 2022 and beyond that the growth trajectory will continue. An increase in interest rates, however, may cause a slight slowdown. It is expected that prices will increase in the future, but the increase will be more rational.
Due to the robust demand, changing demographics, and realization of the need to own a physical asset, the residential segment is poised to grow across the nation. There is a likelihood that prices will increase linearly as demand increases with a receding pandemic and increasing economic conditions.
The economic recovery in the first quarter of 2021 has been solid, with a fast pace of growth and stable employment conditions for employees. Real estate is expected to grow over the next few years. As all these factors will significantly affect property prices, this is the perfect time to purchase a home due to the expected recovery and third-wave rumors. With consumers seeking the best deals and convenient payment options to purchase homes, the real estate sector is currently trying to revive its losses.
The best real estate developer in Jodhpur – Ashapurna Buildcon Limited – is always prepared for potential customers and recommends the best affordable scheme to home buyers for the support of households and the local economy.