We are Wealth Clinic Team
It looks like India’s real estate market will be a lot more popular in 2022, and this will keep up for the rest of the year. A good thing is going on in the real estate market, from businesses to homes.
Despite the pandemic’s threats, the sector has shown strength and steady growth in 2021. In India, the first wave of Covid-19 brought the industry to a near halt for a while. However, by the end of 2020, the market had started to pick up, mainly because there had been a rise in the number of people looking for homes. The second wave of Covid-19 hit the area just as it started to grow again. The effects of the second wave did not last as long or be as visible as the first wave. Vaccination campaigns and fewer people getting sick made the market feel better. In addition, the holiday season helped the sector grow even more.
With these things in its favour, the sector made a strong comeback. Q3 2021 growth is likely to keep going, and the year will end on a good note. In Q3 2021, according to a report by JLL, residential sales rose by 66% on a year-over-year basis, which is a lot. The industry will also benefit from low-interest rates, duty waivers (in some states), realistic property prices, and attractive offers that make it easier for people to work together.
This year, the real estate index has risen by 75%. It is the second-best performing sector index, beating the benchmark index Nifty50 by a lot. The real estate market has not only made a comeback but is also expected to grow even more in the coming year because of low loan rates and stamp cuts.
2022 is a big year for real estate.
It looks like the residential real estate market in India will grow by about 5% in 2022, which is a good thing for people who live there. Some experts say that the sales pace is expected to pick up in 2022 because homebuyers will keep looking for bigger homes, better amenities, and better prices to keep them interested in making the deals. As soon as work starts again in offices, rents are expected to stay the same or even rise in 2022 because of the recovery in the commercial sector and the “flight-to-quality” trend. It’s also looking like this year will be a good one for people who want to buy high-end homes.
The impact of money
The Government of India has taken several steps to encourage people to buy real estate. The announcements made in the Union Budget 2022-2023 will help the real estate market grow.
The government is still putting a lot of focus on affordable housing. Still, it is also looking into ways to improve the existing financing systems so that real estate projects that aren’t moving can get the money they need. In the first week of December, the Government of India pushed back the deadline for all families in rural India to have a pucca house until 2024. The Cabinet decided that the flagship rural scheme, the Pradhan Mantri Awas Yojana-Gramin, will get INR 2.17 lakh crore in extra money from the government and the states to meet its goal of building 2.95 million homes.
The Reserve Bank of India’s Monetary Policy Committee (MPC) has said that it will keep the repo rate and the reverse repo rate the same for the tenth time in a row. Setting the clock
The tone for the year, MPC, made it clear that it wants to grow. Keep the interest going, and it will help make the product more affordable for the customer and help keep the current demand trends in place.
There will be more growth.
NITI Aayog thinks that the Indian real estate market could be worth $1 trillion by 2030. By 2025, that market will make up 13% of India’s GDP. Currently, the real estate industry is the third-largest source of economic growth. In 2022, it is expected to keep going up, as well.
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