Residential Real Estate Poised For Healthy Growth In 2022

The residential real estate sector has witnessed major changes during the pandemic. Despite the decline in the market last year, gaps were bridged, transparency was maintained, sustainability was prioritized, new trends were innovated, and preferences were shaped. In this scenario, as customer-centricity took the center stage, the performance of the residential market was seen with strategic interest. During this time, the residential market came to play a larger role in serving a consumer base that looks at real estate assets as a steadfast promise for a secured future. As per the Colliers report, the residential real estate sector saw the highest surge in the past four years in terms of investments. At USD 0.9 Billion, this was a two-fold jump from 2020. The sector exhibited a staggering recovery fueled by the massive increase in the demand for capital. Consequently, the inflows in the residential segment witnessed a significant uptick with a two-fold increase Year on Year. These statistics provide overwhelming evidence to substantiate that the shadow of the pandemic is fading, and a silver lining is now visible, which is sure to drive a healthy growth of the sector in 2022. The pronounced buoyancy in market sentiment exhibited by the real estate sector is supported by a shared understanding among investors and buyers that stems from the significant returns witnessed in the last two quarters. The channels of investment have gained steam, supported by favorable policy support, exponential infrastructure development, as well as a congenial global business climate. In the wake of the pandemic, homebuyers have come to realize the importance of owning a home. With the uncertainties of this new world, the housing segment as emerged as a stable and lucrative investment choice. Increased awareness of health, well-being and comfort, combined with the extensive adoption of modern technology have propagated sustained growth in the segment. With a large spectrum of the population now inoculated with the vaccine, and market transactions achieving pre-pandemic invigoration, the real estate sector has now shifted gears from recovery to growth mode. Inspired by an indomitable entrepreneurial spirit and a conducive framework for economic growth, is giving rise to a new generation of uncompromising homebuyers. Market analysts are confident that the year 2022, will see greater proliferation of demand in the luxury segment. The pandemic has ushered new trends and expectations. While factors like affordability still play a crucial role for homebuyers, the new normal has seen this demographic requiring not only flexible work policies but also homeschooling for their children. The desire to stay close to their families combined with major infrastructure development is sure to strengthen the realty market in tier-2 and tier-3 cities. Homebuyers are now looking for a plethora of modern facilities and hi-tech amenities. In addition to posh neighborhoods, homebuyers have also come to prefer properties with sizeable balconies and large open spaces enveloped by verdant greenery. The extensive infrastructure development across the country has played a defining role in supporting realty growth in these volatile times. The vision outlined by the government for major infrastructure projects, along with the encouraging schemes designed and executed to bolster the Indian economy have greatly aided the growth of the real estate sector. As previously untapped opportunities are explored in the real estate sector, the coming year will be defined by attractive property valuations across the country. With a flourishing investment ethos sweeping across the nation, the year 2022 heralds a promising outlook for the Indian real estate sector. As per various industry reports, the accelerating momentum in sales exhibited by the residential segment would most certainly continue. This is further validated by an expected rise of up to 5% in property valuation next year. With the aftershocks of the pandemic a fading echo now, the real estate market is sure to achieve an unprecedented growth in the new year. Source: Business World