Will 2022 be a turning point for India’s real estate sector? In India, the real estate sector is the second-highest employment generator, after the agriculture sector. The real estate sector in India contributes 7 % of the country’s GDP.
Here are the list Real Estate Trends to follow in 2022 –
Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030. Retail, hospitality, and commercial real estate are growing significantly, providing the much-needed infrastructure for India’s growing needs. In 2021-22, the commercial space is expected to record increasing investments.
The investment market in India continues to grow and mature. These growth trends are expected to continue into 2022.
India’s housing market will find its growth next year, According to many economists, residential real estate will be boosted by a recovery from the pandemic and easy monetary policy.
Government of India along with the governments of respective states has taken several initiatives to encourage development in the real estate sector. These policies will be prime boosters for real estate.
Residential prices are likely to start rising again. Many of the supply and demand-side factors, assessed over the last decade, have started putting upward pressure on house prices. Residential sales momentum is expected to continue in 2022 as homebuyers preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals.
Office sector has tailwinds of record Information Technology Sector hiring. Office markets will be driven by the uprising in Information Technology Sector’s leasing momentum.
Businesses are to remain flexible on most cost components. In this turn of planning patterns, the co-working sector will benefit as the pandemic brings the need for agility like never before. It will drive the demand rebound for flexible office spaces despite the return of normalcy.
E-commerce segment will drive growth in the warehousing sector, with its share in total warehousing transactions increasing to 36% in FY 2023 (Financial Year April-March) from 31% in FY 2021. In this scenario, speed and technology will emerge as key considerations for occupiers’ warehousing strategy.
With the coming of 5G and data localization norms, the need for data storage to be closer to its users assumes greater importance and requires the country’s data center capacity to scale up quickly to meet the needs of the country’s user base.
Given the significant volume of capacity already under construction, we estimate that approximately 290 MW of IT load will be added in 2022 to the market, to take the total-built IT capacity to 735 MW by the end of the year.
CONCLUSION The real estate sector as seen above is recording a good recovery despite the pandemic with segments like residential outperforming others. The disruption caused by the pandemic is slowly settling and the real estate market is expected to regain its strength by the next year.