The real estate sector saw a solid rebound in 2021.
With stable performance and a rapid recovery, the real estate sector regained the confidence of buyers and investors and further accelerated the growth momentum.
According to Knight Frank’s report “Real Estate Outlook 2022,” India’s real estate sector is showing signs of healthy growth in 2022.
Residential segment – According to the Anarock report, between January and September 2021, the residential sector saw a 27% increase in new supply over full year supply in 2020, and sales also increased by 5%.
Commenting on the performance of the sector, Mohit Goel, MD, Omaxe Ltd. said: “2021 has been a difficult and eventful year for the real estate industry. Despite the trade disruptions due to the pandemic, the sector has experienced a strong rebound. Supported by strong economic growth, the real estate sector quickly gained momentum. The pandemic-induced trends, coupled with low interest rates, affordability, and other enabling factors, have increased real estate growth in Tier 2/3 cities and are expected to drive growth in the market. sector. in the years to come. New asset classes like high-end and mixed-use commercial buildings have found favor with investors and buyers. Likewise, in residential and urban projects, full-size homes have emerged as a preferred choice and will continue to drive real estate growth in the years to come. With strong demand, changing trends and new emerging markets at the forefront of industry growth, the coming year is likely to be a landmark year for the real estate industry.
The housing industry has quickly embraced digitization and innovation and has also seen a shift in demand where offers with the best amenities have become the most sought after choice of buyers.
Speaking about trends and customer preferences, Mohit Jain, Managing Director of Krisumi Corporation, said, “Working from home has become the mainstream undercurrent in shaping the preferences of home buyers. top spot as the most demanded region and flexible working options to continue to shape housing decisions in new ways in 2022. “
Vivek Singhal, CEO of Smartworld Developers, said: “The pandemic has reshaped real estate models, with developers prioritizing individuality and customer focus as their primary considerations. Innovation and digital transformation will drive the growth of this industry in the coming year. 2021 has propelled a preference for a new class of independent storey assets located in closed townships. We expect this demand to continue to grow in the years to come.
“It has been surprisingly a great year for real estate, especially residential. After the pandemic, low interest rates and increasing demand for larger homes were a catalyst, and we have seen growth as a result. both in sales and in price, ”said Pankaj Bajaj, MD, Eldeco Group.
Rahul Singla, Director of Mapsko Group, said: “Housing demand is expected to reach pre-COVID levels over the next two to three quarters, while rates could increase by 5% in 2022. Although threats of the new variant are adequately contained with minimum disruption at the start of the new year. “
Business Segment – According to CBRE’s report, office rental activity reached 13.5 million square feet in the third quarter of 2021, with approximately 140% quarter-on-quarter growth, showing healthy real estate growth commercial. Industry experts share their views on the growth model.
Abhishek Pandey, Vice President of Customer Engagement and Distribution, Viridian RED, said, “The changes brought about by the pandemic have propelled demand for flexible office space and hybrid models not only in the metro but also in Tier 2 cities. Due to aggressive government policies, thriving business ecosystem, business expansion plans, new and emerging trends, 2022 is expected to witness increased demand for Class A office space. “
Vineet Taing, President of the Vatika Business Center, added: “The merger of commercial real estate, coworking spaces and category A offices with well-connected infrastructure has gained momentum. The magnificent shift from traditional work stereotypes and work from home trends to coworking spaces and hybrid working styles has pushed the big players in the market to embrace new business models with cutting edge technologies and smarter offerings. “
Retail Segment – The return of customers to physical shopping destinations is driving demand for premium retail space. Retail rental activity hit 0.6 million square feet in the third quarter of 2021 in Category A malls and shopping streets, according to a report, and also saw quarterly growth of nearly 165%.
In this regard, Pankaj Bansal, Director of M3M India, said: “The market is constantly expanding. There are huge growth opportunities for small and medium retail investors that will make the market more accessible to a wider audience. the real estate sector, which is the second sector in terms of job creation, only after agriculture, will create more jobs. “
Ravish Kapoor, Managing Director of Elan Group, said: “The increase in business activities and transactions will gradually accelerate the growth of the retail business, which will lead to an increase in demand for retail spaces such as stores and malls. Large-scale institutional investments are expected to stimulate the growth of the commercial real estate sector in India in the years to come. “
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