Indian Real estate Market- a 2022 outlook!
Despite concerns about the Omicron crisis, the real estate market in 2022 appears to be positive, with demand growth across all categories.
The real estate business emerged as the most desired investment choice in 2021. Because of the two waves of the COVID-19 outbreak and the subsequent lockdowns, the phrase “Owning a Home” became the slogan in every conversation – in familial, social, and professional circles. Despite the fact that it was a challenging year in which lives and livelihoods were at stake, economic development stalled, and job losses were widespread across industries, the real estate industry had a substantial recovery, preparing the stage for a bright year ahead. The sector’s resilience during the past two pandemic waves offers cause to hope that it will withstand the current Omicron strain threatening the globe.
The real estate industry, for its part, has adapted to the changing environment. It changed its strategy and linked its objectives and operations with changing trends and client preferences, supported by technology. The pandemic losses did not dampen the sector’s enthusiasm for long, and the optimistic rebound was seen in better market and consumer sentiments.
Bengaluru, Mumbai, and Hyderabad-key in residential real estate recovery
Bengaluru and Hyderabad are projected to lead India’s residential real estate recovery in 2022, according to a top real estate platform, at a time when home sales are picking up steam thanks to record low home loan interest rates and record low affordability powered by steady real estate prices.
These three cities had a surge in homebuyer activity during the second wave of the coronavirus outbreak, whereas Tier-II cities like Surat, Jaipur, and Patna saw the highest spike in online property search volume in 2021. According to the index, Surat, Jaipur, Patna, Mohali, Lucknow, and Coimbatore are among the ‘cities to monitor for building-up residential demand.’
The online property search volume of high-intent homebuyers is tracked by the IRIS index of a renowned real estate website. The index is a leading indicator of residential demand in India’s 42 most populous cities.
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The year 2021 will undoubtedly be remembered as a year of good transformation in the residential real estate market. We are certain that the robust momentum in the residential markets will continue beyond 2022, assuming India can successfully address the threat of the Omicron variant spread. Larger residences will be the preferred option among homebuyers in 2022, according to the index, as firms continue to provide remote working arrangements in the face of Omicron variant concerns.
According to data, in 2021, search queries for apartments with 3+BHK configuration increased by 15% year over year. In 2022, the metro cities of Mumbai, Bengaluru, and Hyderabad will drive a surge in residential demand. On the back of continued remote working policies, we’re seeing growing traction in tier-II cities like Surat, Jaipur, Patna, Mohali, Lucknow, and Coimbatore. Homebuyers are increasingly gravitating toward larger homes and areas with better healthcare, security, and open space. In 2022, the market will be shaped by shifting consumer preferences in residential real estate, as well as digital penetration across the supply and demand value chain.
Since the price of a property is directly proportionate to its size and amenities, internet searches for homes costing more than Rs 2 crore have surged as well – the index for luxury properties showed 1.1x more questions in 2021. Despite the NCR’s poor exposure due to project delays and developer insolvencies, the index projects strong homebuyer demand in Noida Extension in the future year.
According to the index, this year’s national online property search traffic was dominated by Noida Extension. This is owing to the area’s relative affordability, as well as the fact that the federal government and Uttar Pradesh’s state government have announced a series of big infrastructure projects for the region. According to the IRIS index, the rental market in the megacities of Mumbai, Bengaluru, and Delhi may revive in 2022 as firms hire more people. These three cities were responsible for the majority of online rental search volume in 2021.
Dwarka Eway to lead real estate sales in Delhi and Gurgaon
On the Dwarka Expressway, there are a variety of inexpensive properties for sale. They are available for purchase through the Haryana government’s affordable housing scheme, Pradhan Mantri Awas Yojana (PMAY) Lifestyle homes that are affordable while still providing the best amenities such as a community center, daycare facility, landscaped garden, 24-hour power and water supply, and convenient shopping within the community.
Dwarka Expressway is a popular property buy and investment destination due to its strategic position, strong connectivity, and outstanding physical and social infrastructure. It is near to the Railway Station as well as the planned Interstate Bus Station. The closeness of major expressways like the NH8, KMP, and NPR adds to its accessibility.
The long-awaited Dwarka Eway project is set to be completed on July 4, 2022. The longest elevated road in the world is a 29-kilometer stretch between Shiv Murti in Delhi and Kherki Daula Toll in Gurgaon (23 km). It would have an 18.9 km length in Gurgaon and will be an 8-lane grade-separated road.
Dwarka Expressway has lately emerged as Gurgaon’s most well-known and prosperous neighborhood. This high-potential area is being developed by renowned developers like Tata, Godrej, Sobha, Shapoorji Pallonji, Signature Global, Hero Group, ATS, and Puri Constructions. Individuals wishing to buy a house can find a good selection of 2,3,4 BHK homes in a variety of price levels. The Dwarka Expressway will have extensive link enhancements as part of the General Metropolitan Development Authority’s (GMDA) Comprehensive Mobility Management Plan. Highways will be built connecting Sectors 125 and 114, as well as Sectors 108 and 106, NPR, and Sector 114.
The GMDA has called for bids to repair the Sector 99-115 link road. In the Sector 10 and Dwarka Eway neighborhoods, two urban woodlands are being developed. Green covers will be 30 times denser and 10 times taller than in conventional plantations. The MRTS line will connect with the Metro Extension at Subhash Chowk.
This expanding list of initiatives, together with its expected operationalization in the coming months, would make Dwarka Expressway a very attractive investment for both end-users and investors.
Pune Metro to guide Pune Realty
The debut of the Pune Metro train services is expected to stimulate the city’s real estate sector. The start of metro operations is expected to spur real estate development along the city’s metro routes. With a larger floor space index (FSI) allowed in these regions, real estate developments are taking off to exploit this new mass transportation infrastructure and fuel the next phase of expansion in Pune’s real estate.
The Pune Metro started a 12-kilometer length on Sunday, and the metro train network is anticipated to grow further to reach all parts of the city.
Along the metro corridor, the city is poised for vertical expansion. The transit-oriented development (TOD) strategy allows for increased FFSI and population density within a 500-meter radius of metro stations. While the Maharashtra government announced an FSI of 4 along TOD zones within a 500-meter radius, analysts believe that for real estate developments to take off in the TOD zone, the government would need to change some of the restrictions to make it more feasible and cheap for purchasers. Some of Pune’s top real estate developers stated they were excited about the Metro’s debut and have scheduled launches in the next quarters with a total saleable area of 4.85 million sq. ft.
Indian Real estate Market- a 2022 outlook FAQ’S:
Despite the Omicron crisis, the real estate market in 2022 seems to be favorable, with demand increasing across all categories. The real estate market is also benefiting from a favorable economic outlook.
By 2040, the Indian real estate industry would have grown to Rs. 65,000 crore (US$ 9.30 billion), up from Rs. 12,000 crore (US$ 1.72 billion) in 2019. The Indian real estate sector is expected to be worth $1 trillion by 2030, up from $200 billion in 2021, and to contribute 13% of the country’s GDP by 2025.
In 2022, residential real estate investment will be coterminous with the recovery cycle, and when offices/commercial businesses begin to rehire, the rental market will follow.