Leading Trends That Will Shape India’s Housing Market in 2022
We have reached the final phase of 2022. Numerous changes were observed in the real estate industry, including a fall in affordable housing, the introduction of mid-range and luxury housing, an increase in the demand for apartments, and a creation ban to control pollution following Diwali.
In terms of all-time high income throughout the top-7 towns in India, 2022 may surpass the previous record of 2014 based on the housing income recorded up to this point and inside the first three quarters of this year. According to the most recent Anarock figures, the top 7 towns’ total annual income should approach 360,000 items by 2022.
Additionally, there has been a significant demand for housing in the apex towns as well as tier-II and tier-III towns, notably from end-users. According to a study from Anarock, task protection has improved in the first half of the year compared to the uncertain pandemic era. “The residential market has had healthy revenue, and launches have also demonstrated signs and symptoms of an upsurge at some point in 2022. Additionally, private equity investing has increased significantly in 2022, according to Pradeep Aggarwal, founder, and chairman of Signature Global.
However, the unattractive element eventually turned into a significant increase in loan fees. Interest rates on residential loans have increased by more than 2% since the year’s beginning. In 2023, this is likely to harm home demand. According to statistics provided by Anarock, the mid-variety Rs 48 lakh, high class Rs 80 lakh – 1.05 crore, and comfort sectors more than Rs 1.05 crore have been the showstoppers of 2022.
Low-cost housing, on the other hand, experienced a slowdown, with more consumers opting to wait and see; predictably, new supply in this category has seen a significant decline. Low-cost housing had the best delivery percentage during the 2019 pre-Covid year, at 40%, with 236,560 units distributed inside the top 7 municipalities, according to Anarock data. Only 21% of the approximately 265,000 lakh items released inside the top 7 towns during the first nine months of 2022 were low-cost housing deliveries, which is a significant decrease from the approximately 265,000 lakh items released during this time.
In 2022, plotted patterns were quite popular, particularly in south India. Plots continue to rule the roost in terms of residential property in Bengaluru, Chennai, and Hyderabad even if the worst of the epidemic, which saw an enhanced demand for independent living, is gone. According to Saransh Trehan, managing director of Trehan Group, “Bigger homes, independent flooring, and plots had been the primary sought-after or preferred choice of domestic clients at some moment in 2022.”
Since the government banned construction activities inside the National Capital Region last week after the air quality index dipped into the “severe” category, the real estate market was likely disrupted, leaving many homebuyers concerned about the future of their under-construction homes.
As a result of rising pollution levels in the area, the government prohibited all creation sports in Delhi NCR below level III of the Graded Response Action Plan from October 28, 2022. Apartment demand increased once more after declining significantly during the worst of the epidemic as more businesses called their employees back to work, at least inside the hybrid model.
Rental market demand has now not only exceeded but also surpassed pre-pandemic levels, and many housing societies reported having few to no vacancies. In comparison to pre-pandemic tiers, rentals increased 20–25 percent on average, with some of the more renowned societies experiencing increases of more than 30 percent.
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