After COVID-19, people are looking to become stronger financially, and real estate filled that gap in 2021. Also, people realized the importance of having their own home. In 2021, many factors worked in favor of real estate apart from the pent-up demand, it was about increasing housing affordability, low home interest rates, and subdued prices.
The realtors are positive about the coming year as sales have picked up pace and likely to reach pre-COVID levels soon. “It was a year of recovery for India’s residential real estate market. Barring April-June quarter that saw the outbreak of the second wave, housing sales were strong, driven mainly by pent up demand and multi-year low interest rates on home loans. We saw a major shift in demand towards reputable builders that have an impeccable record of executing projects on time. We firmly believe that the strong momentum in the residential markets will continue through the 2022 calendar year with sales numbers likely to reach pre-COVID levels and perhaps even surpass 2019 numbers,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com.
Realtors say that good news from 2021 will be carried forward in the coming year; the sector is anticipating some of the trends that began in 2021 to pick up steam in 2022. “People have realised the importance of having a separate space inside the house for various tasks due to the pandemic. The demand for larger homes – 3 BHK and up – has risen since the pandemic hit India. The trend was evident in the first quarter of 2021, when markets began to open up, and it is expected to continue in 2022,” says Sanjay Sharma, Director, SKA Group.
According to data from Proptiger.com, demand for homes priced between Rs 75 lakh and Rs 1 crore in Delhi NCR is 13%, and demand for homes priced over Rs 1 crore is 24%. “Noida has surpassed other places in the Delhi-NCR region as the preferred destination, thanks to continuous infrastructural development that enticed buyers to consider the city an ideal place to live. PM Narendra Modi recently laid the foundation stone for the Noida International Airport, which is expected to draw significant investment from a variety of businesses. Due to seamless connectivity and high-end infrastructural initiatives such as Film City, a new segment of the corporate elite, including HNIs and UHNIs, will be evaluating the city for living and doing business,” says Manpreet Singh Wason, Director, Maasters Infra.
The COVID-19 pandemic, which is witnessing subdued pricing and a weakening rupee, has drawn the attention of NRIs. According to the 360 Realtors study, NRI quarters received USD 13.3 billion in FY 21. Even though general market confidence suffered initially in 2021 due to the pandemic, investment volume climbed by 6.4 per cent over the previous fiscal year. According to the research, based on a regression analysis, investments will increase by 12% to USD 14.9 billion in FY22.
“NRIs will appreciate the luxurious residences now under construction in Noida. NRIs are concerned about their health following the pandemic, and projects that address this issue will be most beneficial. Because there are developments expressly targeted towards NRIs, NRI investment will keep on growing. We are confident that the third wave, if it occurs, will not have a terrible effect since people are being extra cautious about their health. The real estate sector has also taken lessons from 2020 and is employing techniques to keep up the growth,” says Yash Miglani, MD, Migsun Group.