In 2022, value of real estate in India is estimated to be robust, according to a report

According to Knight Frank India’s ‘2022 Outlook Report,’ the residential market might witness a 5% increase in value in 2022.

In a research released on Thursday, Knight Frank India, an international property consultancy, predicted that 2022 will be a much more stable year for the pandemic-affected industry, both commercially and residentially.

“Portfolio optimization and hybrid working are projected to remain the major trends moving ahead, based on increased interest from IT/ITes organizations as well as the rebound of flexible office operators, with physical workplaces here to stay. Additional market resurgence is forecast with in residential market, including robust end-user desire assisted by government stimulus and developer concessions assuring buoyancy. The warehouse industry, which was risk conservative during the pandemic, will sustain its growth pace, fueled with interest by online and third-party logistics providers “According to the analysis, given the pandemic’s challenges, the real estate industry rebounded strongly in 2021, especially housing sectors surpassing others. The pandemic’s disruption is gradually stabilizing, as well as the property market is likely to regain its tempo in next two to three quarters, although this new variant’s dangers are properly managed with minimal interruption in the initial part of the new year. If we can maintain such momentum, the real estate industry will rebound sufficiently to meet or perhaps exceed pre-pandemic levels.” Knight Frank India’s Chairman and Managing Director, Shishir Baijal, stated.

This report’s major conclusions emphasize 2022 patterns and trends in India’s different real estate categories. In 2022,

• The residential category is expected to see a 5% increase in capital value.

• Several supply and demand-side issues that have been evaluated during the previous decade have begun to exert increasing pressure on property prices. In 2022, the trend in residential sales is projected to continue, as potential homebuyers’ demand for larger houses, greater facilities, and competitive pricing will keep them interested in closing transactions.

• The incremental demand for office space among the Top 5 IT businesses, based on strong hiring in the previous eighteen months, is anticipated to be 11.67 million square feet over the next one to two years.

• Even as epidemic underscores the necessity of adaptability as never before, the coworking industry will profit. Although the return to normalcy, agility, a buzzword associated with the co-working sector, will increase demand for flexible office spaces.

• Rents are likely to remain constant to increase in 2022 as the office sector recovers and the flight-to-quality trend continues.

• The warehouse industry is expected to rise at a CAGR of 20% from 31.7 million square feet in FY 2021 to 45.9 million square feet in FY 2023, owing to the e-commerce boom. During this time, e-percentage commerce’s of total transactions is expected to rise to 36% from 31%.

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