By Rishabh Siroya, Founder Legend Siroya, President – Elect Naredco NextGen
Post pandemic demand revival
The real estate sector was unprepared for the sudden arrival of COVID-19 and had to go through a fair share of highs and lows in 2020 and the first half of 2021. Considering the robust vaccination drive across the country, experts have shown confidence in the year 2022. This sector that deals with housing, retail, hospitality and commercial is expanding with multi-fold increase in demand and growth in mandate from urban and semi-urban accommodations. The reviving trends of 2021 will drive the boom of the industry in 2002 & 2023.
According to a report released in August by the Indian Real Estate Industry, the real estate market is all set to reach a market size of $1 trillion by 2030, and will contribute 13 per cent to the GDP by 2025
3 major reasons for this new growth trajectory
1. Over the past year, the Reserve Bank of India (RBI) has cut the home loan interest rates to historic lows which has lowered the interest rates charged by banks, encouraging homebuyers to take action.
2. Since the construction sector was allowed to continue operations during the lockdown, there are more ready-to-move-in properties available.
3. Remote working must now be looked at as a long-term trend. Since people will continue to acquire spacious residential properties to accommodate home offices, the real estate market is expected to flourish.
Some trends to look out for in 2022-23:
1. Ready homes or short-cycle delivery homes to remain a preferred option due to the low risk associated with them, ease of getting bank loans and tax benefits. Short-Cycle delivery homes are under construction properties with delivery deadlines of 12-18 months. Moreover, sooner the buyer gets possession of a home, sooner they have the option of moving in or renting it out for a profit. The rental income can be used to pay off the EMI on a loan used to purchase the home.
3. Demand for secure homes offering additional facilities will increase. There has been a growing demand for homes in hygienic and green complexes, with good infrastructure and facilities like healthcare, daily necessities and everyday fitness within walking distance.
4. Buyers also prefer to opt for more spacious homes with room for private home offices and balconies. People prefer spacious, independent options, where they can carry out all their daily activities smoothly. When remote working culture got adopted unanimously, people were on the lookout for homes with extra room or space, which could either serve as an office or study.
2020 was a very challenging year for the industry as it was for most of us. But looking forward to the trend of real estate in India 2022, the Indian real estate market is expected to not only bounce back, but boom. It has the potential to be one of the key drivers for the recovery of the Indian economy on the whole. So if you are thinking about purchasing real estate in India, this is the perfect time to do so.