India’s real estate market is showing healthy growth in 2022 and this is expected to hold for the rest of the year. Despite pandemic exigencies, the market is witnessing a healthy increase in demand for residential spaces.
After going through a tumultuous two years of the Covid-19 pandemic, the Indian real estate market is showing signs of recovery. From commercial spaces to residential properties, the overall market outlook is a bright one.
The country’s central bank is projecting GDP growth of 9.5% for Financial Year (FY) 2022, and It is predicted that the property market in India is set to benefit from the government. activities in the coming months.
Here are some of the key factors that will define Indian real estate in 2022
Residential Market Will Boom
After a prolonged period of falling and then stabilizing, Indian house prices are set to rise by 5 percent in 2022. The main reason for this growth is due to supply and demand factors. This is also influenced by the record low interest rates brought into place across the globe.
People also predicted more value in spacious and luxurious homes because of their changing lifestyles. Residential market growth momentum will continue to rise in 2022 as prospective homebuyers want flexible homes, better amenities and attractive pricing plans.
Office Space In Demand
Office markets will be driven by the upswing in IT Sector’s leasing momentum. As per Knight Frank Research, companies are hiring a huge workforce and it will increase demand for office spaces greatly in the near future.
Businesses are looking for hybrid office spaces to fit with the flexible work culture. With the booming eCommerce sector, the demand for warehouse spaces has increased tremendously and is set to increase to 45.9 million square feet by 2023.
Requirement Of Flexible Co-working Spaces
In the uncertain times created by the COVID-19 pandemic, businesses are moving to flexible work culture and it provided a brilliant opportunity for co-working spaces to suck up revenue from the agility-demanding businesses.
The rapid expansion plans by major coworking players, and the pandemic-triggered need to re-strategise workspaces, expect a healthy future for the co-working sector. Businesses returning to offices will consider flexible spaces to reduce cost and expenditure.
Expectations From The Government
The real estate industry has always contributed greatly to the country’s economic prosperity. A number of initiatives by the Government of India will influence real estate purchases. Union Budget 2022-2023 announced many policies for the real estate sector and it will create a thriving atmosphere in the real estate sector.
The government continues to prioritize the affordable housing segment and housing for all plans. Flagship rural scheme, Pradhan Mantri Awas Yojana-Gramin will be provided an additional INR 2.17 lakh crore to achieve its target of building 2.95 crore houses. It will drive growth to related industries too.
Conclusions
As per NITI Aayog, the Indian real estate sector will reach a market size of $1 trillion by 2030. Given the significant volume of capacity already under construction, the demand for luxury homes, affordable housing and ready-to-move-in homes, the real estate industry is expected to continue its upward trajectory in 2022.
