Last two years become the most unexpected, volatile market for the Real Estate Business not only for Real Estate, it causes many unexpected loss for many business mainly for startups due to the COVID-19, hastening the recent trends.
But this came with anew Era, Online Marketing like online trend. This applicable for real estate business as of online buying and selling has taken off. Low stamp duty and interest rates in recent quarters have boosted the sector, increased demand and boosted the confidence of the homebuyers’ as well.
As a result, 2021 saw good traction in the mid segment (units priced between Rs 40 – 80 lakh) and high-end (units priced between Rs 80 lakh – Rs 1.5 crore) categories. Altogether, around 65 per cent of the supply between Jan – Sep 2021 came in these segments.
Soon after the vaccination drives began, the industry began to grow in terms of new and improved launches in response to market demands and financial inflation for the sector’s benefit.
On top of all that, heavy returns, good rentals and improving infrastructure have been the additional key drivers. Real estate experts have seen 2021 as a period of rapid transformation. Developers too have invested in technology and digital channels to reach out to consumers in a more efficient way.
As move to a new financial year, some experts have predict an optimistic 2022 for the real estate industry.
Foreign investment will drive this sector
Foreign Direct Investments (FDI) remain an important growth driver, and the same applies in the case of the real estate players as well.
Commenting on the sector’s performance in this regard, Kedia feels that Indian real estate has succeeded in attracting foreign moolah, especially in the residential market.
“The residential real estate market in India has become more lucrative for ultra-high net-worth individuals (UHNIs) and NRIs as a result of the increased transparency and ease in investment norms,” Kedia says.
Property prices will go up
1.38 lakh housing units were sold in 2020. When compared to the previous peak in 2014, this was a rock bottom of 60 per cent. However, between January and September of 2021, 1.45 lakh units were sold. This was a 5 per cent increase over the sales in 2020.
As mentioned above, 2021 saw a good traction, altogether around 65 per cent of the supply between Jan – Sep 2021 came in these segments.
Expectations from the government
The real estate industry has always been a dominant player and has contributed greatly to the country’s economic prosperity. In the coming months, the expectations of the buyers and developers ought to rise as the sector has been the recipient of a lot of newly formulated government policies.
Going forward, the experts strongly recommend the real estate developers to focus on completing their existing projects. Which will eventually trigger sales given that the demand is there, and the buyers are more likely to go for the developed projects. The demand for luxury homes, affordable housing and ready-to-move-in homes will remain high.