The real estate sector in India is witnessing good growth in demand by 2022 and this impetus is expected to continue throughout the year. From commercial spaces to the residential market, the overall outlook is a brilliant one for the real estate industry.
Even though the epidemics, the market continued to show flexibility and constant growth in 2021. India's first covid-19 wave relatively paralyzed the region for some time. However, with the last quarter of 2020, the market began to pick up the speed, as the demand for residential space raised. The second wave of covid-19 strike the market as soon as it began to restore itself. The results were not very long compared to the second wave from the first wave. Vaccination drives, low infection rates and the festive season have given the market optimism and accelerated the growth of the sector.
In the excitement of these factors, the region made a strong comeback. The growth recorded in 2021 Q3 is likely to continue and this year is going to end on a positive note as well as Residential sales witnessed Increased by 65% on a continuous basis. The industry will benefit from a provision of lower interest rates with duty relief (in some states), realistic property pricing, and attractive offers leading to affordable integration. Real estate is not only expected to make a comeback due to historically low lending rates and temporary stamp cuts also it is expected to grow in the upcoming year.
2022 - A remarkable year for the Real estate
India’s real estate sector is expected to continue to grow by about 5% in the residential segment by 2022 and the number of home and land buyers is expected to pick up sales speed by 2022, while the commercial sector is expected to grow exponentially as work resumes in the offices, and the luxury housing market is expected to reach new heights in this year.
Union Budget 2022- 23 effects
Crucially, the Union Budget for 2022-23 proposes to improve the availability of affordable housing and strengthen the multimodal infrastructure pan-India across the country. While some of the requirements such as single-window clearance, industrial status, and tax cuts may not be met, this is a budget for the future and enabled. The real estate sector will be strengthened in many ways. The government continues to prioritize affordable housing, and in parallel explores ways to strengthen existing funding mechanisms to finance stagnant real estate projects. The Cabinet has decided to provide Rs 2.17 lakh crore for the Pradhan Mantri Awas Yojana-Gram, a major rural project. Apart from the target of 2.95 crore houses, central and state funds will also be allotted. Overall these will help to create a thriving environment in the real estate sector.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has announced that the repo rate and reverse repo rate will remain unchanged for the tenth consecutive time. All these give a clear indication that this year's MPC growth is focused and keeping interest rates will help the consumer to increase their affordable prices and keep up with the current demand trends.
Conclusion by continuing the realtors’ sector growth
The Finance Commission expects the Indian real estate sector to reach $ 1 trillion by 2030 and to account for 13 percent of India's GDP by 2025. The real estate industry is the third largest sector of economic growth. The bottom line is that the path to its top is likely to continue in 2022.