REAL ESTATE 2022
The real estate sector in India is projected to experience robust growth in demand throughout 2022, with the overall market forecast remaining positive for both commercial and residential markets. Despite the disruptions caused by the COVID-19 pandemic, the sector has remained resilient and demonstrated steady growth in 2021. The second wave of the pandemic did have an impact on the market, but vaccination campaigns and lower illness rates have helped to boost market confidence.
In the third quarter of 2021, residential sales increased by 65 percent on a sequential basis, according to a JLL report. The real estate index has increased by 75 percent in the last year and is the second-best performing sector index, outpacing the benchmark index Nifty50. This upward trend is expected to continue in 2022, thanks to historically low loan rates and temporary stamp cuts.
In the residential segment, the real estate sector is expected to rise by approximately 5 percent in capital value by 2022. Additionally, as office employment resumes, the commercial sector’s rebound and the flight-to-quality tendency are projected to keep rents stable.
The Indian government has implemented various initiatives to encourage people to own real estate, including proposals made in the Union Budget 2022-2023 that aim to support the development of a robust real estate market. The government has placed a high priority on affordable housing and is seeking ways to improve existing financing processes in order to offer liquidity to stalled real estate projects.
The Monetary Policy Committee of the Reserve Bank of India has announced that the repo rate and reverse repo rate will remain unchanged, with a focus on growth. This will aid in increasing consumer affordability and maintaining existing demand trends. According to NITI Aayog, the Indian real estate sector is projected to reach a market size of $1 trillion by 2030, accounting for 13 percent of India’s GDP. Overall, the real estate industry is forecasted to continue its expansion in 2022.