Mumbai: When there is a boom in the economy and the stock market, then the real estate sector also picks up. After facing recession for almost 8 years, the country’s realty sector, especially the housing segment, started a new phase of boom from 2021, which is gaining momentum. A record sale of 1.11 lakh properties took place in Mumbai during 2021, which is the highest in the last 10 years.
Sales are increasing in all cities including Pune, Nagpur, Nashik. Industry veterans believe that 2022 will also prove to be a year of rapid growth for the realty sector. Property prices may also go up by 10 to 15% due to higher construction costs and pick-up in demand. However, despite the increase in sales, prices have increased by only 10% at present, while the cost of construction has increased by 25% to 35%.
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New era will usher in 2022: Dr. Niranjan Hiranandani
Dr. Niranjan Hiranandani, National Vice President of ‘Naredco’, a leading organization of the real estate industry and Dr. Niranjan Hiranandani, Managing Director of Hiranandani Group, says that the industry is returning rapidly. Affordable housing, mid and luxury, all three segments are witnessing good demand. The commercial segment has also started to recover. I believe that 2022 will be a big change for Indian real estate. The new year will herald a new era of trends, growth and dynamism in the realty sector. Quick vaccination drive, cut in home loan interest rates, buoyant capital market, infusion of liquidity, highest FDI were the major highlights of 2021. Now developers are launching new projects considering the choice of home customers and the favorable market. The increase in the confidence of both the customer and the investor will increase the value of home ownership and give a boost to the housing sector. Young home buyers are flocking to modern homes with open layouts.
high expectations from the budget
Dr. Hiranandani said that the suburbs are developing rapidly all over the country including Mumbai MMR. Due to which the demand for residential and commercial properties is getting an impetus. A series of new micro-markets will be created across India. Employment generation and home demand will increase the pace of development of the country. There are a lot of expectations from Budget 2022 as well. It is expected that the government will give some new incentives to boost housing.
Ready to take a new flight: Manju Yagnik
Manju Yagnik, Senior Vice President, Maharashtra unit of ‘NAREDCO’ and Vice President of Nahar Group, says that the year 2021 brought a new dawn for the real estate industry and the enthusiasm that was generated in the industry last year, It is expected to grow further in 2022. There are many reasons for this. After recovering from the epidemic, the economic growth of the country is accelerating. Although there is a possibility of a third wave of COVID, it will not have a much opposite effect on economic growth than the previous two waves, as the government has controlled the COVID crisis in India to a large extent by rapid vaccination. The real estate sector is getting the direct benefit of accelerating economic growth. There is a growing demand for homes, especially in the affordable and mid housing segment. With interest rates at a record low of 6.5%, people are helping realize their dream home through affordable home loans. The Reserve Bank is also in favor of keeping interest rates at lower levels this year to boost demand.
Inventory problem solved
Manju Yagnik said that the problem of huge inventory (unsold unsold property) in the industry has been overcome in the last two years due to less supply and increase in demand. With the work from home culture continuing in the IT and other service sectors, demand for 1, 2 and 3 BHK homes will continue to grow. Now the demand for small offices is also increasing. Due to all these positive factors, the demand will increase with the upward trend of prices and the realty sector will take a new flight in 2022. So this is a good time to invest in property.