Growth in Indian Real Estate in 2022

Indian real estate market has been witnessing a steady growth since the second quarter of 2021. Things were not so good during the covid outbreak, but post-covid, the sector has firmed back and the growth seems promising and driven by a huge demand for affordable houses. RTMI houses are gaining much popularity as people who were saving or waiting for the right time to buy a house are coming up and making use of lucrative schemes of the government like stamp duty reduction clubbed with all-time low interest rates on housing loans from banks and NBFCs.

Now that we’ve made peace with the fact that COVID or any such pandemics can come and our life should go on, more and more people are looking to invest in real estate and buyers are looking to buy homes that are spacious and come with amenities. Community living is something which is gaining a lot of momentum and housing societies with multiple facilities and leisure amenities are much talked about. In addition to the residential real estate, offices, coworking spaces, warehouses and data centers are driving the commercial real estate to new levels. Even in the lockdowns what kept going on lavishly, was the ecommerce sector and thus warehouses and data-centers continued to be important real estate investments.

The real estate sector hasn’t been behind in adopting latest technologies. Be it house tours with Virtual Reality or online payments or attractive websites, builders and companies have done everything to keep pacing steadily in the market growth. In Union budget 2022-23, the deadline for providing affordable housing for all has been moved to 2024. Government’s focus is on affordable housing section and PMAY and PMAY Gramin schemes have been helping millions of people get subsidy on housing loan interests, leading to a more affordable and accessible housing. In addition to this RBI’s decision to keep the repo rate and reverse repo rate unchanged for the 10th consecutive time has provided strength to Banks and NBFCs to keep their interest rates low.

There’s been an overall trend of reverse migration throughout the country. People from metro cities are moving to tier-2 and tier-3 cities in search of a peaceful and decluttered life, with lesser pollution and more greenery. Especially the tier-2 cities that are nearby metro cities are driving the momentum of residential real estate and have been emerging as favorites of investors and home-buyers. For example, cities like – Bhiwadi near Delhi, Pune near Mumbai, Mysore near Bangalore, etc. have been gaining much popularity owing to their cheaper property rates and wide range of available property, and of course, proximity to nearby metro cities.

Residential real estate is expected to rise at 5% growth rate in 2022. As people continue to look out for spacious houses with more amenities and offices get all set to open, both the residential and commercial real estate are bound to rise. Moreover during the the slowdown of market in the past 2 years, a lot of under-construction projects’ sales stalled. As a result these under-construction projects becam RTMI as the construction completed in these years. Hence the perplexities and doubts around RTMI flats have reduced significantly as most of the RTMI flats are new constructions and come with lucrative discounts.

The prices are set to rise once again and it can be seen anytime soon. It is the best time to invest in real estate. Low interest rates on housing loans, reduced stamp duties, lucrative offers from builders – everything is favourable for buyers at this time. If you are someone who was waiting for the right time to invest in real estate or buy a house for yourself, this is the right time.