Despite the pandemic, the residential real estate market is booming, with homes selling like hot cakes. The residential segment in major Indian cities remained overly bullish, making it a top investment choice. The demand for residential real estate in major Indian cities has risen alongside the COVID-19 induced pandemic as the pandemic and successive lockdowns have caused a strong desire among people to own a home. Moreover, the pandemic has served as a reminder that home is the safest place during difficult times.
According to Knight Frank’s latest market valuation report, despite the third wave, quarterly sales for the first quarter of 2022 (January-March) exceeded 78,627 residential units. Mumbai recorded the highest sales volume with 21,548 units in the first quarter of 2022, while Delhi-NCR recorded the highest year-on-year (YoY) growth in new home sales volume at 123% . Bangalore, which ranked third in terms of residential sales volume, also recorded a 34% annual growth in the first quarter of 2022, with 13,663 new units sold. The report also concluded that all major real estate markets have seen an increase in the capital value of residential properties due to growing demand from home buyers.
Speaking on the bright outlook for the residential real estate industry, Vivek Singhal, CEO of Smartworld Developers Pvt Ltd, said, “The year 2022 has started on a positive note for the real estate industry as an excitement major was observed on both sides of developers and buyers. Pandemic recovery improves affordability for buyers day by day as their finances recover. Furthermore, the industry will continue to benefit from a low interest rate regime, coupled with the infrastructural initiative taken by the government. We expect the capital value of apartments in major metros to appreciate between 5% and 12% due to increased input costs of key materials like cement, steel and other materials important firsts.
“In 2022, potential buyers will continue to prefer larger homes, better amenities, an idyllic location and a full lifestyle ecosystem. Additionally, as working from home gets fewer takers and a majority of the workforce is returning to offices, this will have a positive impact on demand for the residential segment.We expect 2022 to be the year of residential real estate, dominated by millennial homebuyers who are investing more than ever in real estate,” Singhal added.
NCR leader in the residential segment
According to recent research data from Anarock, quarterly home sales across India’s seven major cities were recorded at 99,550 units in the first quarter of 2022, representing a 71% year-on-year increase. another compared to the approximately 58,290 units sold in the first quarter of 2021. NCR and MMR, the two dominant real estate hotspots, recorded more than 48% of total sales in the top seven cities, with NCR recording a 114% year-on-year increase.
Many factors are influencing the real estate market following the debacle triggered by the COVID-19 pandemic. Additionally, historically low home loan interest rates are prompting property developers to offer a wide range of choices at an attractive price. Additionally, government-backed grant programs are also fueling homebuyer enthusiasm.
Mohit Jain, Managing Director of Krisumi Corporation, said, “Favorable interest rates, hybrid working mode and the pandemic-led awareness of the need to have one’s own home as the main purpose of life, Attractive pricing and supportive government policies will continue to drive sales momentum. in residential real estate markets. Mortgage rates are the lowest on record and have played an important role in helping buyers convert their demand into an actual purchase. At Krisumi, we have witnessed unparalleled demand. We have sold over 75% of our inventory and will soon be out of stock. The market has shown green shoots of recovery and the dovish market conditions will continue to drive the upward push. »
“The real estate sector brings enormous benefits and opportunities such as stability, future security, assured returns, etc., and is currently attracting home buyers who are planning for a secure future and a hassle-free life. Therefore, the sector real estate has become the preferred investment choice for buyers and investors.According to an industry report, the real estate sector is expected to grow by around 5% in capital value in the residential segment in 2022. It shows also with the continued recovery and momentum in the first quarter of fiscal 2022,” said Santosh Agarwal, CFO and Executive Director, Alpha Corp.
An eventful year awaits the residential segment
Given the positive outlook for the real estate sector, it seems reasonable to expect India’s residential sector to perform exceptionally well in 2022. Home sales will gain ground this year due to the growing preference for larger, better quality homes. equipment and competitive prices. .