Residential real estate poised for healthy growth in 2022-Shashank Vashishtha

The residential real estate sector has seen major changes during the pandemic. Despite the market downturn last year, gaps were closed, transparency was maintained, sustainability was prioritized, new trends were innovated, and preferences were shaped. In this scenario, while customer orientation took center stage, the performance of the residential market was viewed with strategic interest. Meanwhile, the residential market has begun to play a bigger role in serving a consumer base that sees real estate assets as an unshakable promise of a secure future. According to the Colliers report, the residential real estate sector has seen the biggest increase in the last four years in terms of investment. At $0.9 billion, this is a double jump from 2020. The sector posted a meteoric recovery fueled by the massive increase in demand for capital. As a result, entries into the residential segment increased significantly, doubling year-on-year. These statistics provide overwhelming evidence to support that the shadow of the pandemic is fading and a silver lining is now visible, which is sure to drive healthy growth for the industry in 2022.

The pronounced momentum in market sentiment exhibited by the real estate sector is supported by a common understanding between investors and buyers stemming from the strong returns seen over the past two quarters. Investment channels have gained momentum, supported by favorable political support, exponential infrastructure development, as well as a congenial global business climate. In the wake of the pandemic, buyers have realized the importance of owning a home. With the uncertainties of this new world, the housing segment has established itself as a stable and lucrative investment choice.

Increased awareness of health, wellness and comfort, combined with the massive adoption of modern technologies, has propagated steady growth in the segment. With a wide swath of the population now inoculated with the vaccine and market transactions reaching pre-pandemic revitalization, the real estate sector has now shifted from recovery mode to growth mode. Inspired by an indomitable entrepreneurial spirit and an environment conducive to economic growth, gives birth to a new generation of uncompromising buyers. Market analysts are confident that the year 2022 will see a greater proliferation of demand in the luxury segment. The pandemic has given rise to new trends and expectations. While factors like affordability still play a crucial role for homebuyers, the new normal has seen this demographic not only demand flexible working policies, but also home schooling for their children. The desire to stay close to their families, combined with the development of major infrastructure, will certainly strengthen the real estate market in Tier 2 and 3 cities. Home buyers are now looking for a plethora of modern facilities and high-tech amenities . In addition to uptown, homebuyers have come to prefer properties with large balconies and large open spaces surrounded by verdant greenery.

Extensive infrastructure development across the country has been instrumental in supporting real estate growth during these volatile times. The vision outlined by the government for major infrastructure projects, along with the encouraging plans designed and executed to support the Indian economy have greatly contributed to the growth of the real estate sector. As previously untapped opportunities are explored in the real estate sector, the coming year will be marked by attractive real estate valuations across the country. With a flourishing investment philosophy across the country, the year 2022 heralds promising prospects for the Indian real estate sector. According to various industry reports, the sales acceleration displayed by the residential segment will most certainly continue. This is further confirmed by an expected rise of up to 5% in the value of real estate next year. With the aftershocks of the pandemic now fading, the real estate market is sure to achieve unprecedented growth in the new year.

Warning: The views expressed in the article above are those of the authors and do not necessarily represent or reflect the views of this publishing house. Unless otherwise indicated, the author writes in a personal capacity. They are not intended and should not be taken to represent the official ideas, attitudes or policies of any agency or institution.

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