The Real Estate Sector In 2021
The year 2021 was yet another remarkable year for the real estate sector. Following the COVID-19 pandemic, the sector witnessed slow recovery, with great sales and the introduction of new projects. The significant increase in sales was mostly due to a shift in buyer attitudes, as people came to see the benefits of owning a home during the pandemic and considered it as the safest investment option. Unlike any other year, 2021 saw a steady drop in unsold inventory, as interest increased in the markets for purchasing secondary property. All-time low home loan interest rates, a slew of one-of-a-kind deals from the government and real estate developers, enticing property prices and growing household savings, all where factors that contributed to the Indian real estate market’s upward trend.
As the entire world was forced to spend an inordinate amount of time indoors, many people had the chance to reassess their spending habits. The RBI opted to leave policy rates steady throughout the year, meaning that the low-interest regime on house loans will continue, supporting the restoration of housing demand. Many home buyers were drawn throughout the timeframe by the availability of a variety of alternatives and unique bargains from developers, as well as never-before-seen prices and tax benefits.
Factors that will direct the real estate sector in 2022
The real estate sector as a whole is optimistic about the coming year. The year 2021 delivered a slew of unexpected changes. While every other business suffered losses and obstacles due to the ongoing COVID-19 pandemic, the real estate market saw a surge in property purchases. The demand for large homes has increased as people have started looking for spacious projects that accommodate their multi-functional needs. This trend is likely to continue in 2022. Budget homes that fall between the average prices category of Rs 50 lakhs and Rs 70 lakhs, are expected to witness increased demand from home buyers, which will boost project launches in the particular segment. Segments like luxury and ultra-luxury are also likely to see renewed buyer interest. Several other trends are also likely to dominate the residential sector in 2022.
The concept of integrated living is fast catching up in the residential sector, as home buyers have started preferring projects with modern amenities, including shopping malls with multiplexes, schools, hospitals, leisure clubs, office blocks and parks. This trend has picked up pace, as home buyers are now looking to lead a more peaceful life that is self-sufficient and secure. While township living takes care of all social, civic and recreational needs of residents and is equipped with multi-layer security systems, the demand for township living is increasingly positive and is sure to continue in 2022, as well.
Emerging realty hotspots
The year 2022 will witness real estate developers making significant investments in the suburban regions. Such micro-markets have seen a continuous influx of migrants from outside the city, owing to the establishment of IT special economic zones nearby and the presence of reputed educational institutions and other major essentials. These suburbs have good access to the rest of the city and have become a favorite alternative for home owners, due to improved connectivity for commuters. The availability of homes at affordable prices, compared to that of the metros, still easily accessible to all major facilities, has made micro-markets a sought-after location for real estate.
Increasing interest from NRI home buyers
Owning a house in this country provides NRIs with a sense of security and continuity, to fall back on in times of crisis. This also allows them the option of retiring in the nation or exploring new business prospects in the region. The combination of the low home loan rates, fall in the exchange rate of the Indian rupee, great offers and deals, availability of houses and never-before-seen pricing, are sure to make 2022 a good year for NRIs to invest in real estate.
Wellness housing communities primarily incorporate essential characteristics that significantly influence human health and progress. With health and hygiene taking centrestage, the demand for exclusive amenities that promote a healthy lifestyle has witnessed a multifold increase. From walking trails and clean and green environments to pollution-free air and neighbourhoods, innovative features and amenities that promote health and wellness, such as dedicated meditation spaces, reflexology pathways, unique wellness features, organic and herb gardens, yoga courts, oxygen-infused clubhouses, chlorine-free gyms, and vitamin-C showers, have become home buyers’ favourites.
Real estate as an investment option
The tangible aspect of home as a long-term investment tool has emerged stronger than ever. The year 2021 witnessed a surge in secondary home buying. People started realising the benefits of investing in real estate and considering it a safe and secured investment option. Considering that the real estate market is not as volatile as any other investment market and offers higher returns, 2022 will witness a multi-fold increase in real estate investments.