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What developments should the Indian Real Estate Market expect in 2022

In India, the real estate industry stands second to the agriculture sector in employment generation. The India real estate market is expected to exhibit a CAGR of 9.60% during 2022-2027 and is set to experience around 5% capital value growth in 2022 in the residential segment. Few reports suggest that the frequency of sales is increasing in


2022 as prospective homebuyers continue to prefer larger homes, better amenities and affordable pricing.

Moreover, the increasing need for modern office spaces and the emerging trend of urban and semi-urban living spaces are acting as another key factors influencing growth. The investors in the real estate segment have trusted commercial real estate as a rewarding investment choice as it provides high ROI and additional income opportunities. Aliso have made some predictions such as Investors are willing to pay 20 to 25% higher prices for ultra-luxury products. The transparency level in the country’s real estate sector has only been possible because of increased institutional investment and the increasing numbers of Real Estate Investment Trusts (REITs) helping to broaden market data and bring more order to the sector to complement regulatory initiatives like the Model Tenancy Act.

With the reshaping of the Indian economy and a majority of the workforce returning back to offices, the need for commercial real estate is at the highest in a while. The digitalization of processes, policy support extended from the government, low interest rates and growing customer trust has enhanced the value of this segment and newer trends and innovations are constantly coming up.

Commercial real estate is also witnessing a high increase in eco-friendly and sustainable developments due to rise in awareness and the need to curb pollution and tackle climate change. For a sustainable future, the consumer's focus has shifted towards eco-friendly & sustainable infrastructure, use of energy efficient systems, renewable sources of energy, rainwater and waste water management, greenery and better policies for the residents. The evolving trend of buyers looking for well-being, stability, and future security has skyrocketed housing sales.

Market bounce back is also the progression of the gradual recovery observed in the past six to nine months.  After less demand due to the pandemic, the real estate market has been on an upswing since the second half of the previous year. The real estate in tier two and three markets will also climb fast with sustained infrastructure investments, increased connectivity, and better job opportunities, these markets show prominent growth. Investments in data centers and digital infrastructure will also boom in the coming months. Big tech giants such as Google and Amazon are already planning several investments in the Indian data center space, banking on its long-term potential. These promising factors have placed the sector on an upward climb and it clearly shows that the post COVID era investment era belongs to real estate industry.

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Authored Article by  Vipin Suree,  Founder & Managing Director, Space Creattors Heights


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