In the past 2 years, there has been global instability in various sectors. Many industries have observed a stark decline in profits and a drastic change in consumer behaviour. Real Estate is commonly considered a rather stable and secure industry with no rapid changes. However, the pandemic has taken a toll on every industry and real estate is no exception.
Though the market looks to be levelling as more listings become accessible, real estate transactions in 2022 are expected to have new trends which will reflect in the growth of the industry. Here are the trends which we might see as we enter into 2022:
Interest rates are projected to remain unchanged in 2022, according to a forecast by Construction Week Online. However, increased steel and cement costs would harm new customers, since the developer will be forced to pass the cost on to the buyer by raising the price of a flat. As a result, the government might have to intervene to address growing raw material prices.
Product design will take precedence over apartment size in the year 2022. An extra room has become a consumer requirement; what is outside the four walls of a home (open spaces and amenities) will become just as significant as what is inside the four walls. Integrated townships, walk-to-work, shops, hotels, hospitals, schools, and parks are becoming increasingly popular with homebuyers.
With the surge in vaccination, India is emerging from the pandemic, which is likely to increase construction and purchase. As a result, a higher profit is expected in 2022 as compared to the past 2 years, making 2023 the peak year for real estate in India.
According to the Economic Times, in the year 2022, India is predicted to attract $2.5 billion in cross-border real estate investments. In an article in the Economic Times, Shishir Baijal, CMD, Knight Frank India said that “A series of structural reforms in the recent past has put the country’s real estate sector on high trajectory attracting global attention. Rapidly improving pandemic scenarios in the country coupled with policy interventions to support realty sector growth will ensure global capital finds it attractive to participate in the sector. The country’s commercial real estate sector has evinced strong global investor interest in segments led by Office and Warehouse,”
As the world emerges and recovers from the aftermath of a two-year long pandemic, many things are expected to change for various sectors. Real Estate in particular is projected to see growth in 2022. This could prove to be positive news for both the builders as well as the buyers. Prominent builders like Goyal & Co. are catering to the changing needs of the consumer and developing new schemes keeping in mind the requirements of the post-pandemic world.
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