Purva Meraki is an industry expert and has been in the real estate business since 2019, when she first started working in real estate as a broker. Since then, she has seen the market trends change drastically and knows exactly what to expect by 2022. For more information about what to expect in the 2022 real estate market, check out her latest article on how to save money on your home renovations .
From commercial to residential markets, India's real estate sector is experiencing good growth in demand by 2022, and that trend is expected to continue throughout the year. However, in spite of the epidemics, the market maintained steady growth in 2021. The first covid-19 wave in India temporarily paralyzed the region. In the last quarter of 2020, the market began to pick up speed, as residential space demand increased. The second wave of covid-19 struck as soon as the market began to recover. Vaccination drives, low infection rates, and the festive season have given the market optimism and accelerated the growth of the sector compared to the second wave of the first wave.
The growth recorded in 2021 Q3 is sure to continue and it's also likely that this year will end on a positive note with residential sales also experiencing a spike of 65%. With favorable deals and competitive pricing and increased integration of not only financial and economics markets, the industry will come back stronger than before. Real estate is predicted to not only make a come back due to low rates and breaks from previous historical decisions, but will grow in the future.
By 2022, India's real estate market is expected to grow at 5% in the residential market. Commercial sales will grow exponentially, while luxury housing is expected to increase in this year.
Union Budget 2022- 23 effects
Specifically, the Union Budget for 2022-23 has proposals for increasing the availability of affordable housing, enhancing the multimodal infrastructure across India and raising efficiency in taxes, licenses, and regulatory procedures. Of course, not everything will be met - after all, it's a plan for the future - but these are necessary reforms that should be put into action. These government-backed affordable housing efforts, as well as developments to keep existing funding mechanisms alive, will have positive implications for the real estate market. Yesterday, the Indian Cabinet approved a new major rural program: the Pradhan Mantri Awas Yojana-Gram. Along with a target of building 2.95 crore houses, there will be an allotment of central and state funds. As a result of these, there will be a thriving real estate sector.
In spite of strong economic and competitive progress, the RBI has announced that it will not change the repo and reverse repo rates for the tenth consecutive time this year. All these indicate that the RBI is trying to keep up with the MPC growth, by keeping the rates unchanged.
Conclusion by continuing the realtors’ sector growth
India's Finance Commission expects the country's real estate sector to reach $1 trillion by 2030, accounting for 13% of the nation's GDP by 2025. Currently, the sector is the third largest economic sector in the country, following telecommunications and electricity. Ultimately, the quest to reach the top will probably continue in 2022.