How 2022-2023 is going to be for Real Estate?
How 2022-2023 is going to be for Real Estate:
The Increasing housing demand, opening & reopening of more offices, and the government’s push towards the affordable housing segment are all together helping in a significant recovery.
As we say, there is always the rise of light after every long dark knight. During the past few years, there has been very difficult for the economic growth at large. But, recently, the real estate sector has witnessed a big demand for homes & housing. Even though there is an increase in construction costs, the real estate market has been doing very well. Let us explore the reasons that have led to a major comeback of the real estate demand in India.
1-Fresh launches
Across India, the real estate sector has shown us enough resilience and gracefully maintained its position in challenging years that were hurt by the pandemics and blockades. Meanwhile, the residential & housing sector showed a solid bounce-back throughout these years. The commercial real estate sector in India was more stable during late 2021.
The housing sector has shown an impressive growth rate, showing that residential sales are up by about 51% year-on-year, touching 232,903 units among India’s eight megacities.
Knight Frank India said that the number of new homes built in 2021 would go up by 58 percent to 232,382 units. For the business office segment, it was a mixed bag. Even though the amount of rent was 38.1 million m2, it stayed at the same level as in 2020. This shows that the real estate market has much potential for leasing.
2-Very low prices
As so many homes on the market haven’t been sold yet, prices are likely to rise slowly. People who wanted to buy a home but were waiting for the pandemic to end are now interested in investing in real estate. Prices are still reasonable, and developers are giving serious buyers big discounts. The Indian government’s continued focus on the affordable housing market also drives up demand. This demand will lead to strong sales in India’s real estate market in 2022 and 2023.
3-Places of business and offices
India Inc. had to stay home because of the coronavirus pandemic, and the office’s space sector took a big hit. But now that the pandemic is almost over and almost all businesses are starting to work from their respective offices again and the recovery of the commercial real estate sector is good news and is helping a full-scale recovery.
Based on the most recent data from the real estate consulting firm Cushman and Weikfield, the net office absorption is expected to rise by 30–35% and reach 29–31 million square feet (MSF) by the end of 2022. When office work starts again, the fresh supply could reach 45–46 MSF in 2022 alone. These are very good signs that India’s real estate market is getting better and growing again.
4-Government efforts
Considering the problems caused by the pandemic, the Indian government is refocusing its efforts on the mission of “Housing for All.” The fact that the government recently extended the Pradhan Mantri Awas Yojana (Gramin) program until 2024 shows that it will continue to help people. Also, the focus of the exchequer on tier-II and tier-III cities has given real estate developers more confidence to start new projects in these cities. This will increase the demand for housing by a huge amount.
With the Credit Linked Subsidy Scheme, it’s easier for people from economically weaker sections to buy a home, which will help the real estate market recover strongly in 2022 and 2023.
Together, the increasing demand for housing, the reopening of offices, and the government’s help for affordable housing contribute to a strong recovery of the real estate market in India. The Indian real estate market will start to get better in 2022 and 2023.
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