Like most businesses, the construction or real estate sector in India took a nosedive at the start of 2020 due to the COVID-19 pandemic outbreak. However, slowly since 2021 the sector has shown consistent signs of recovery and has regained momentum, despite the devastating second wave and the looming threat of the third.
Coming into 2022, despite the emergence of the Omicron variant of the COVID-19 virus, experts suggest that the sector will continue to grow. Here are a few vital housing trends everyone must watch out for in India.
The supply and sale of new residential housing units may continue to grow from where it left off in 2019 and reach the pre-COVID levels. Also, according to many property consultants, the home loan interest rates in India would start increasing from the second half of the year in 2022. The industry experts also opine that the larger players and reputed real estate developers will continue to dominate the market and enjoy a large share compared to the smaller and newer builders.
According to Knight Frank India, a property consultancy, the residential housing segment will witness about 5% capital growth in 2022. Some experts suggest that the sale of residential properties will continue to rise through 2022 and in future as many potential homebuyers aspiring for better amenities and bigger homes will be interested to close the deal.
With the home loan rates slated to rise, you can avail of a loan now and accomplish your dream of being a homeowner. You can use the EMI calculator in India to know the exact EMI payable for the amount you want to borrow and make arrangements for the funds.
According to the industry insights, 2021 saw a decent growth in the sale of luxury residents in Mumbai and the trend is likely to continue in 2022. And, to tap into the new demand, many reputed builders are likely to start a new project. So, if you are looking to purchase a new home, 2022 could be the year to do so.
The massive difference between rental yield and the bank FD interest rates has been shrinking over the past couple of years and it is expected to reduce further in 2022. Over the past few years, the rental yield in Mumbai was as low as 1.5 to 2%, which has not come in the range of 3-4 per cent. During the same period, the interest rate offered by banks on the fixed deposit holders has reduced from 8 to 8.5% to about 4 to 6%.
The COVID-19 pandemic induced restrictions and curbs as well as the continuance of the work from home trend has allowed many builders to market multifunctional homes. And, many real estate experts suggest that the trend will continue to gain momentum in 2022 and a few years beyond. There will be a significant rise in the unique project offerings from the builders, and as a potential home buyer you would have ample choices.
All in all, 2022 seems to be a promising year for home buyers, with several new projects on the offering, you may be spoilt for choices while you set out to buy your dream home. Also the real estate industry as a whole is likely to grow.