Is the real estate sector of India recovering in 2022?

The market crashed during Lockdown 2.0, but it quickly recovered as demand picked up. Despite concerns about the Omicron crisis, the market in 2022 appears to be bullish, with demand accelerating across all categories.

Share on facebook
Share on twitter
Share on linkedin
Is the real estate sector of India recovering in 2022?

The Indian economy is showing signs of recovery after a tumultuous two years marred by the Covid-19 pandemic. The previous year has also been a roller coaster ride for Indian real estate. The market crashed during Lockdown 2.0, but it quickly recovered as demand picked up. Despite concerns about the Omicron crisis, the market in 2022 appears to be bullish, with demand accelerating across all categories. Knight Frank India, an international property consultant, said in a report that 2022 may prove to be a more stable year for the pandemic-hit sector, both commercial and residential. According to Knight Frank’s ‘Real Estate Outlook 2022,’ India’s real estate sector is expected to grow at a healthy rate in 2022. The real estate sector has also regained buyer and investor confidence and accelerated growth momentum through consistent performance and a quick recovery.

In 2022, the Indian real estate sector has seen a healthy rebound across various segments.

Residential Real Estate

In 2022, the residential segment gets expected to see a 5% increase in capital value. Many of the supply and demand-side factors that have gotten assessed over the last decade have begun to put upward pressure on house prices. Residential sales momentum get expected to continue in 2022, as prospective homebuyers’ preferences for larger homes, better amenities, and competitive pricing keep them eager to close deals. According to the Anarock report, new supply in the residential sector increased by 27 percent between January and September 2021, compared to 2020, and sales increased by 5 percent. The year 2021 has been challenging and eventful for the real estate industry. Despite the pandemic’s business disruptions, the sector experienced a strong rebound. The real estate sector quickly gained traction, aided by strong economic growth. The pandemic-infused trends, combined with low-interest rates and affordability, have expanded real estate growth in tier 2/3 cities. It will also lead to the expansion of the sector. Investors and shoppers get drawn to new asset classes such as hi-street and multipurpose commercial properties. Large-sized homes emerged as a preferred choice in residential township projects and will continue to drive real estate growth in the years ahead. The coming year will be a significant one for the real estate sector. It will get contributed by the massive demand, evolving trends, and new emerging markets. The housing sector was also quick to embrace digitalization and innovation. There was also a demand shift in which offerings with best-in-class amenities became the most desired choice of buyers.

Commercial Real Estate

According to the CBRE report, office leasing activity reached 13.5 million square feet in Q3 2021, growing at a rate of about 140 percent year on year, indicating healthy growth in commercial real estate. Experts in the industry weigh in on the growth pattern. The pandemic-induced changes have increased demand for flexible office space and hybrid models. It is not only in metro areas but also in tier 2 cities. With a thriving business ecosystem, companies’ expansion plans, and new and emerging trends, 2022 will see an increased demand for Grade A office space. The combination of commercial real estate, coworking spaces, and grade-A offices with well-connected infrastructure is gaining traction. The remarkable shift from traditional working stereotypes and work-from-home trends to coworking spaces and hybrid working styles has compelled market players to adopt new business models with advanced technologies and offerings.

Retail Real Estate

Customers’ return to physical shopping destinations is driving up demand for high-end retail spaces. According to a report, retail leasing activity in Grade A malls and high streets reached 0.6 million square feet in Q3 2021, representing a quarter-on-quarter increase of nearly 165 percent. Increased business activities and transactions will gradually accelerate retail growth, increasing demand for retail spaces such as stores and shopping malls. Large-scale institutional investments get expected to boost India’s commercial real estate sector’s growth in the coming years.

The findings of the 2022 Outlook Report also highlight the 2022 trends and dynamics across real estate segments in India.

  • In 2022, the residential segment gets expected to see a 5% increase in capital value.
  • Based on robust hiring in the last eighteen months, the Top 5 IT companies’ incremental demand for office space is estimated to be 11.67 million square feet over the next one to two years.
  • As the pandemic reinforces the need for agility like never before, the coworking sector will benefit. It will drive the demand rebound for flexible office spaces despite the normalcy.
  • The office sector’s recovery and the flight-to-quality trend get expected to keep rents stable to rise in 2022.
  • Transactions for warehousing get expected to grow at a CAGR of 20% from 31.7 million square feet in FY 2021 to 45.9 million square feet in FY 2023.  It all owes to the e-commerce boom. During this period, the share of total transactions attributed to e-commerce gets expected to rise from 31 percent to 36 percent.
  • The tenacity of Indian REITs during the pandemic and their growing popularity among retail investors will pave the way for other commercial real estate REITs.


Assetmonk is a WealthTech Platform that offers real estate investment options with IRRs ranging from 14 to 21 percent in Hyderabad, Chennai, and Bangalore. We offer three product categories: Growth, Growth Plus, and Yield. Click on the link above to learn more about our products and services.

Is the real estate sector of India recovering in 2022 FAQ'S:

Despite concerns about the Omicron crisis, the real estate market in 2022 appears to be bullish, with demand accelerating across all categories. Real estate is also benefiting from a positive economic outlook.

The housing market will be more balanced in 2022. But do not expect a buyer’s market. 

LATEST NEWS

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Related Articles

child saving scheme

Child Saving Schemes

A child is the most precious thing in your life, and it’s important that you take care of them. However, it can be hard to know how much money you should save for their future education, health, and insurance needs. There are many different types of child saving schemes available for parents who want to safeguard their children from financial difficulties later in life. Here are some examples: Sukanya Samriddhi Scheme The Sukanya Samriddhi Yojana is a child saving scheme specially made for girl children. It was launched by Prime Minister Narendra Modi on January 22, 2015. The objective of this scheme is to promote the financial inclusion of girls in India by incentivizing them to save money through the Sukanya Samriddhi account. The interest rate ordered by this scheme is 7.6% per annum, and the minimum and maximum investment amounts are ₹250 and ₹1.5 lakh per annum respectively. Also, the maturity period of the Sukanya Samriddhi Scheme depends on…

Read more
istockphoto 1159806988 612x612 1

Gratuity Calculation

Wondering how to do gratuity calculation? After a certain period of service, gratuity is the payment of a lump sum to an employee. It is a reward for long-standing service. It is usually paid upon retirement, but it can be requested if you are changing jobs after a certain period (5 years). The gratuity calculation ot calculator formula works out to be a percentage of your salary. What’s the Gratuity Act? The Gratuity Act is shorthand for the Payment of Gratuity Act 1972, which was passed in   September 1972. This Act was created to give monetary benefits to employees who have served a long time for one employer. The Gratuity Act applies to all Indian industries and organizations, but certain conditions must be met to qualify for gratuity as per existing Gratuity Act rules. What are the gratuity rules? India’s gratuity rules apply to employees that are covered under the Payment of Gratuity Act 1972, as well as employees…

Read more
istockphoto 1209874109 612x612 1

SIP vs PPF

SIP vs PPF: Which is better for you? Did you know you can invest in mutual funds through SIPs and PPFs? SIP (Systematic Investment Plan) is a way of investing in mutual funds, where a specific amount of money is invested in mutual funds on a monthly/quarterly/annual basis. The recurring investment strategy of a SIP protects you from the downtrend of the market peak and helps to flatten the curve between the previous investment amount and the present investment amount. It is also important to note that a SIP provides a greater extent of mutual fund units than investing in one go. Whereas, Public Provident Fund or PPF is a savings scheme that is guaranteed and approved by the Indian government. It is a regulated fund, which is managed by various financial institutions of the Indian government. The returns from PPF are revised by the government every quarter. To avail of this scheme, you will need to open a bank…

Read more
istockphoto 1200759231 612x612 1

EPF Form 11

If employees are not members of the Employee Provident Fund Organisation, they should fill and submit an EPF form when entering a new firm that provides the EPF Scheme (Employees Provident Fund). If employees are currently members of the Employee Provident Fund Organisation, the employers must continue to meet the employee’s PF requirements. EPF Form 11 comprises the employees’ EPF records and is required to be filled out when employees join a company. It can immediately transfer the PF account. Who Must Fill an EPF Form 11? Individuals should fill an EPF form 11 when entering a new company that is recognized under the EPF Scheme of 1952. Current members, on the other hand, should fill out this form when changing jobs because it includes all of the facts about the employees’ contributions. Additionally, this form is utilized to move your PF account to another. Features of an EPF Form 11? Objective For fresh EPF Scheme members: It is a…

Read more
istockphoto 1439112216 612x612 1

EPF Form 31 – Partial Withdrawal

EPF Form 31 is used by employees to register claims for a fractional withdrawal of money from the EPF. Employees’ Provident Fund is a savings scheme backed by the govt. that can help employed persons establish a substantial corpus to satisfy their financial obligations after retiring. Employees are expected to deposit a percentage of their basic salary (12 percent) per month to this type of PF. The employer then makes a matching contribution to this investment. The corpus for workers is generated by pooling these deposits with relevant government interest. Employees might also opt to pull from their EPF savings throughout their job tenure to pay any unexpected bills that may occur. Also, read EPF Form 11. When can you withdraw your EPF funds?  An individual can withdraw his EPF money in part or in full via EPF withdrawal Form 31 only under particular conditions. Employees are eligible for withdrawal of their whole EPF savings amount in the events listed…

Read more
istockphoto 1200759231 612x612 1

EPF Passbook Download

Employees can download EPF Passbook online. Employee provident Fund Organisation offers an EPF passbook service online. It functions similarly to a passbook of a bank in that it records an individual’s EPF account spending. It allows one to easily see, import, and print their account statement. This online EPFO member passbook may also be accessed via the program. But, prior to installing the EPFO passbook, the UAN passbook must be unlocked. So, the EPF passbook is a database that contains a record of all contributions made to EPS and EPF accounts by the worker and the employer. The passbook details all contributions made each month. Interests earned in the account of the beneficiary are still kept in the passbook. Read EPF – Employees’ Provident Fund, EPFO Benefits & Process. Information in the EPF Passbook The company’s or employer’s name The ID of the establishment  The type and name of the EPFO office Contributions from both the employer and the employee…

Read more