Housing Sales are Likely to Rise by 15-20

Despite the strong second wave of the COVID pandemic, housing sales are expected to climb 15-20% above 2020 levels in the calendar year 2021. As infection rates began to decline in July, property sales began to increase. The market for gated communities is expected to surge in 2022, according to real estate developers. Despite the pandemic’s business difficulties, the sector rebounded strongly.

The Indian real estate market has recovered and shown tenacity in the aftermath of the pandemic. The real estate market has seen significant consolidation in the last 18-24 months, and this trend is expected to continue in favour of developers with a proven track record of transparency, on-time and quality project execution capabilities, pan-India presence, and, most importantly, a strong balance sheet.

This year, the affordable housing market has witnessed strong demand, and it is expected to continue in the coming months. Senior housing concepts have also gained traction in 2021 and will continue to do so in 2022.

Consumers’ preferred choices have evolved as feature-rich vacation homes, sophisticated luxury mansions, and gated communities with well-managed infrastructure. This rate of expansion is likely to continue in 2022. Proptech would continue to drive significant sales for real estate firms.

Vivek Singhal, CEO, Smartworld Developers said, “The pandemic has also remodelled real estate patterns, with developers prioritizing individuality and customer-centricity as their top considerations. Innovation & digital transformation will drive the boom of this industry in coming year. Buyers are increasingly seeking smart homes with office spaces, functional areas, entertainment and study areas for their children in order to achieve an ideal work-life balance.”

Mohit Goel, MD of Omaxe Ltd said, “In residential, township projects, large-sized homes emerged as a preferred choice and will continue to drive real estate growth in the years ahead. With strong demand, evolving trends, and new emerging markets leading the sector’s growth, the coming year is likely to be an impactful year for the real estate sector.” The need for larger homes, the safety and security of living close to family, and the WFH model pushed buyer interest mostly to Tier 2 and 3 cities. Non-metro cities are rising real estate markets that are expected to lead the industry’s growth in the future year.

Vinit Dungarwal, Director at AMs Project Consultants Pvt. Ltd said, “We have observed that the homebuyers are being very thorough with their due diligence and want to cover all bases before zeroing in on the property or the project of their choice. Apart from features, locality, interiors, prospective buyers are also considering ROI before taking the plunge.”

“For us, at Axis Ecorp approximately 60% of the sales are being generated via digital tools and we believe that this would continue to be the case,” said Aditya Kushwaha, CEO and Director, Axis Ecorp.

Florian Reichert, Partner at Picus Capital stated, “Given that the real estate and construction industry is still one of the least digitized, we strongly believe in a continued disruption through technology of the entire lifecycle of real estate across planning, construction, financing, asset/property management and marketing.”

While the first generation of PropTechs primarily targeted consumers (such as tenants or private owners), Picus Capital sees solutions being developed for enterprises such as real estate developers, asset managers, property managers, and general and subcontractors.

According to Signature Global’s Founder and Chairman, Pradeep Aggarwal, the demand for affordable homes would hit an all-time high in 2021. “Before COVID, this demand accounted for roughly 30% of overall housing demand in Delhi NCR, while it now accounts for more than 40%. Independent floors in Gurugram experienced a boom in demand since they offer speedy quality construction and many premium amenities within a gated complex,” he said.

Sales have increased by 20- 30%, according to developers. Sanjay Sharma, Director, SKA Group stated, “This year was very challenging for real estate sector and other economic activities. Because we have faced the pandemic of the century and all the activities were totally stopped. There was a sense of fear in the mind of public at large. But after lockdown fortunately in real estate, we have seen lot of surge in demand and sale.”