In India’s residential real estate market, 2021 was a year of recovery. Both domestic sales and new launches showed a significant improvement in the period between July and September 2021. The strong momentum in residential markets is expected to continue during the 2022 calendar year, with sales likely to reach pre-COVID levels. The third wave of coronavirus infections, which is difficult to predict, may be the only conceivable obstacle to the recovery process. Furthermore, 2022 will see a continuation of the trends that had gained traction during the difficult COVID-19 period.
development of proptech
One of the great features of 2021 has been the rapid acceptance of proptech solutions in all aspects of real estate—from construction to sales to customer interaction and asset management—and, this trend will continue into the future. The proptech market has evolved beyond enabling online property search to deliver end-to-end solutions to consumers before the virus outbreak in the global business ecosystem.
Apart from connecting the customers to the best real estate deals, the new age real estate platforms now offer various services like Virtual/3D Tours, Virtual Site Visits, Apartment Management, Digital Payment Integration, Movers & Packers, Online Rent Agreement etc. ,
Maximizing the use of cutting edge technologies is a turning point in the real estate business. Digital launches, 3D asset viewing, augmented and virtual reality-based design projects, and virtual asset demonstrations are all beginning to break free from the confines of boardroom meetings and are now being used in the real world; This paints a positive picture for the entire sector, as well as provides a significant boost to NRI buyers.
move on in life
Post COVID-19, the concept of property ownership has gained a lot of traction. While this has helped create positive consumer sentiment towards residential real estate, support from the government and the banking sector has started things up. As a result of the combination of these two factors, the demand and supply metrics improved in the July-September quarter of 2021.
The year 2022 is set to give the sector the much needed boost for which it has waited and worked hard. States can help speed up the recovery process by introducing new homebuyer incentives or by increasing or introducing stamp duty and circle rate exemptions.
People are now looking to live, exercise and enjoy life in new ways while COVID is contained. Because of these decisive variables, consumer perceptions are changing, resulting in increased demand for bigger and better homes.
Moreover, as per the recent consumer sentiment survey conducted by our group company Housing.com, with corporate working from home and adopting hybrid work policies, home buyers are expressing interest in looking for bigger homes. Moreover, home buyers are now taking into account the nearby healthcare infrastructure to select a property. Recreational spaces and daycare centers have also made it to the list of top amenities that shoppers look for.
According to a report by PropTiger.com, another group company of REA India, new launches in the 75-100 lakh category were between 7-9% in the first three quarters of 2019, up from 11-13% for the first time now. three quarters of 2021; Sales were up 9% in the first three quarters of 2019, up from 10-11% in the first three quarters of 2021. On the other hand, sales and launches in other segments have been on a steady rise since 2019.
Increased NRI Penetration
NRIs, especially those from the Gulf and the United States, are seen as high potential customers in the real estate sector. NRIs are opting for larger, more luxurious residences because of the lifestyle they enjoy in the country they live in. Developer offers and the postponement of the RERA deadline as part of the Atmanirbhar Bharat package have prompted NRIs to buy properties in India.
Now, a large percentage of NRIs are looking for housing for personal use rather than investment, a trend reversal from the past. With more NRI property buyers planning to return to India, luxury housing will see a higher demand. NRIs are concerned about their health in the aftermath of the pandemic, and will benefit the most from projects that address the issue. NRIs are inquiring about additional amenities in the property, and we are getting a lot of such inquiries.
2022 prediction
As consumer outlook has a lot to do with a sector’s performance, India’s housing market is poised for strong growth in 2022 based on positive sentiment drivers. This positive sentiment is evident from the demand and supply indicators, which have been showing steady improvement over the past 12 months despite several challenges the sector has faced.
While our hopes of the sector seeing a better day in the new year are based on the expectation that the banking sector will continue to offer home loans at current prices, the government will extend the deadline for several housing-related subsidies expiring in March. 2022, and sustained and concerted efforts from the builder community to make home purchase convenient and affordable for the end user.
(Written by Amit Masaldan, Business Head, Housing.com)
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