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5 housing trends to watch out for in 2022

Despite Omicron worries, sectoral experts are positive in their outlook for the residential real estate market. Luxury residential premises and multifunctional homes are likely to see good demand

Real estate sector, including residential housing, was not immune to the devastation caused by the onset of coronavirus pandemic in 2020. This year, the sector began showing signs of resilience and regained momentum despite the disruptive second COVID-19 wave. And in spite of the emerging risks over the Omicron variant, sectoral experts are positive in their outlook for 2022. Below are the five key housing trends to watch out for in the coming year. (Representative mage: Shutterstock)
India's real estate sector, including residential housing, was not immune to the devastation caused by the coronavirus outbreak in 2020. This year, the sector began showing signs of resilience and regained momentum despite a devastating second COVID-19 wave. Going into the new year, the emergence of the Omicron variant is causing concerns but sectoral experts have a positive view of 2022. Here are the five key housing trends to watch out for in the coming year. (Representative image: Shutterstock)
New supply and sales in the residential real estate market "may reach 2019 levels" by the next year, according to Anarock Property Consultants. The interest rates may start inching up from second half of 2022, it said. The sector will witness an increase in the share of "large players" - Grade A and organized developers - who will continue to dominate and capture more market share from smaller and unorganised players, Anarock Group Chairman Anuj Puri said, , adding that mid-end and high-end housing segments "will continue to drive a majority of the demand". (Representative image: Shutterstock)
New supply and sales in the residential real estate market "may reach 2019 levels" by 2022,  according to Anarock Property Consultants. Interest rates may start inching up from the second half of 2022, it said. The sector will witness an increase in the share of "large players"—Grade A and organised developers—who will continue to dominate and capture more market share from smaller and unorganised players, Anarock Group Chairman Anuj Puri said. Mid-end and high-end housing segments "will continue to drive a majority of the demand", he said. (Representative image: Shutterstock)
According to property consultant Knight Frank India, the residential segment will witness around "5 percent capital value growth in 2022". Many of the supply and demand-side factors, assessed over the last decade, have started putting upward pressure on house prices, it said in a recent report. "Residential sales momentum is expected to continue in 2022 as prospective homebuyers’ preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals," the report, released on December 9, added. According to Anarock Group, the prices may appreciate in the "range of 5-10 percent". (Representative image: Shutterstock)
According to property consultant Knight Frank India, the residential segment will witness around "5 percent capital value growth in 2022". Many of the supply and demand-side factors, assessed over the last decade, have started putting upward pressure on house prices, it said in a recent report. "Residential sales momentum is expected to continue in 2022 as prospective homebuyers’ preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals," the report, released on December 9, added. According to Anarock Group, the prices may appreciate in the "range of 5-10 percent". (Representative image: Shutterstock)
An uptick was seen this year in the sale of luxury residential premises in Mumbai and Delhi. The trend is likely to continue in 2022, say real estate experts. To tap into the demand, Tata Realty and Infrastructure has plans to develop an ultra-luxury residential apartment project near Hailey Road in Delhi, and Godrej Properties said it has entered into a joint venture with the TDI Group to construct a luxury housing project in the capital's Connaught Place area. "While there are some challenges with regard to the supply of high-end floors in the Delhi market due to delays, the outlook for the super luxury market in 2022 remains robust," points out Amit Goyal, CEO at India Sotheby’s International Realty. (Representative image: Shutterstock)
In 2021, an uptick was seen in the sale of luxury residential premises in Mumbai and Delhi. The trend is likely to continue in 2022, say real estate experts. To tap into the demand, Tata Realty and Infrastructure has plans to develop an ultra-luxury residential apartment project near Hailey Road in Delhi, and Godrej Properties said it has entered into a joint venture with the TDI Group to construct a luxury housing project in the capital's Connaught Place area. "While there are some challenges with regard to the supply of high-end floors in the Delhi market due to delays, the outlook for the super-luxury market in 2022 remains robust," said Amit Goyal, CEO at India Sotheby’s International Realty. (Representative image: Shutterstock)
The gap between rental yield and bank FD rates, which has been shrinking over the past few years, is expected to get further reduced moving into 2022. In the past, rental yields in Mumbai were a low of 1.5-2 percent. This has now come in the range of 3-4 percent. "During the same period, the interest on bank FDs has reduced from 8-8.5 percent to about 5-6 percent. This has significantly reduced the incentive to defer the decision to purchase a property," Deepesh Salgia, Director, Shapoorji Pallonji Real Estate, said in a recent column for Moneycontrol. (Representative image: Shutterstock)
The gap between rental yield and bank FD rates, which has been shrinking over the past few years, is expected to reduce further moving into 2022. In the past, rental yields in Mumbai were a low of 1.5-2 percent. This has now come in the range of 3-4 percent. "During the same period, the interest on bank FDs has reduced from 8-8.5 percent to about 5-6 percent. This has significantly reduced the incentive to defer the decision to purchase a property," Deepesh Salgia, Director, Shapoorji Pallonji Real Estate, said in a recent column for Moneycontrol. (Representative image: Shutterstock)
The pandemic-related curbs and the continuance of hybrid work models has allowed builders to aggressively market multifunctional homes. According to experts, this trend will continue in the next year as well. "2021 has definitely pushed us to explore unique marketing tools to virtually appeal to customers. Looking ahead, 2022 will be a year with continued steady demand for multifunctional homes. There will continue to be unique project offerings and homebuyers will have ample choices. Given the confidence built in 2021 post the pandemic and the favourable interest rates for homebuyers, one can expect an uptick in sales in the coming year," Sterling Developers Chairman and MD Raman Sastri said. (Representative image: Shutterstock)
The pandemic-related curbs and the continuance of hybrid work models has allowed builders to aggressively market multifunctional homes. According to experts, this trend will continue in the next year as well. "2021 has definitely pushed us to explore unique marketing tools to virtually appeal to customers. Looking ahead, 2022 will be a year with continued steady demand for multifunctional homes. There will continue to be unique project offerings and homebuyers will have ample choices. Given the confidence built in 2021 post the pandemic and the favourable interest rates for homebuyers, one can expect an uptick in sales in the coming year," Sterling Developers Chairman and MD Raman Sastri said. (Representative image: Shutterstock)
Moneycontrol News
first published: Dec 27, 2021 12:30 pm
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