Real estate developers are expecting the sale momentum to continue in 2022 with demand for gated community continue to grow.
Despite the business disruptions due to the pandemic, the sector witnessed a strong rebound.
“In residential, township projects, large-sized homes emerged as a preferred choice and will continue to drive real estate growth in the years ahead. With strong demand, evolving trends, and new emerging markets leading the sector’s growth, the coming year is likely to be an impactful year for the real estate sector,” said Mohit Goel, MD, Omaxe Ltd.
The urge of having bigger homes, safety, and security of living closed to family, WFH model shifted the buyer’s interest towards Tier 2 & 3 cities predominantly. The non-metro cities are new emerging real estate markets that are likely to lead the sector’s growth in the coming year.
“With the shift in buyer’s preference and new emerging trends, the sector would continue the momentum in closing the deals. We expect the coming year to be a fruitful and stable year for the real estate sector,” said Mukul Bansal, Motia Group.
The Indian real estate market has seen a rebound and displayed resilience post pandemic. In the last 18-24 months the real estate market has also witnessed substantial consolidation, which is expected to pick further pace in favour of developers with proven track record of transparency, on time as well as quality project execution capabilities, pan India presence and most importantly having strong balance sheet.
“The pandemic has also remodelled real estate patterns, with developers prioritizing individuality and customer-centricity as their top considerations. Innovation & digital transformation will drive the boom of this industry in coming year. Buyers are increasingly seeking smart homes with office spaces , functional areas , entertainment and study areas for their children in order to achieve an ideal work-life balance,” said Vivek Singhal, CEO, Smartworld Developers.
The affordable housing segment has seen a robust demand this year and it is perceived that this trend will continue in the coming months. Concepts such as senior living have also found traction in 2021 and these will continue to thrive in 2022.
“We have observed that the homebuyers are being very thorough with their due diligence and want to cover all bases before zeroing in on the property or the project of their choice. Apart from features, locality, interiors, prospective buyers are also considering ROI before taking the plunge,” said Vinit Dungarwal, Director at AMs Project Consultants Pvt. Ltd.
Feature-packed holiday homes, sophisticated luxurious houses and gated townships with well-managed infrastructure have emerged as the most preferred choice for the consumers.
It is expected that this growth momentum will continue in 2022. Prop tech would continue to drive major sales for the real estate companies.
“For us, at Axis Ecorp approximately 60% of the sales are being generated via digital tools and we believe that this would continue to be the case,” said Aditya Kushwaha, CEO and Director Axis Ecorp.
“Given that the real estate and construction industry is still one of the least digitized, we strongly believe in a continued disruption through technology of the entire lifecycle of real estate across planning, construction, financing, asset/property management and marketing,” said Florian Reichert, Partner at Picus Capital.
While the first wave of PropTechs has mainly targeted the consumer (i.e., tenant or private owner) Picus Capital see solutions being build for businesses like real estate developers, asset managers, property managers as well as general and subcontractors.
According to Pradeep Aggarwal, Founder & Chairman, Signature Global, in 2021, the demand for affordable housing reached an all-time high.
“Before COVID, this demand accounted for roughly 30% of overall housing demand in Delhi NCR, while it now accounts for more than 40%. Independent floors in Gurugram experienced a boom in demand since they offer speedy quality construction and many premium amenities within a gated complex,” he said.
Developers say there is 20 to 30 % increase in sales.
“This year was very challenging for real estate sector and other economic activities. Because we have faced the pandemic of the century and all the activities were totally stopped. There was a sense of fear in the mind of public at large. But after lockdown fortunately in real estate, we have seen lot of surge in demand and sale,” said Sanjay Sharma, Director, SKA, Group.
Manoj Gaur, CMD, Gaurs Group said that the market has shown signs of improvement that will sustain in the coming year.
“Some pockets that witnessed infrastructural announcements in 2021, like the area around Noida International Airport, will be on the radar of investors and buyers. The trend of bigger and smart homes, luxury features, and increased demand for plots that started in 2021 will carry forward to 2022,” Gaur said.
Housing sales are likely to rise by 15-20 per cent above 2020 level during the calendar year of 2021 despite the strong second wave of the COVID pandemic. Property sales picked up from July onwards as the infection rates waned.
“With 2021 ending on a note of normalcy thanks to laudable steps taken by the government in terms of making accessible easy and inexpensive housing loans and by way of other policy incentives, the coming year promises to be predicated on integration of high-grade and efficient delivery of a wide range of services,” said Abdullah Mushtaq, COO, 1 OAK.
Krisumi Corporation, India’s first Indo-Japanese real estate joint-venture has recorded sales worth Rs 175 crore between September to November 2021 on 84 units of its maiden project, Waterfall Residences.
“The Rs 100 crore sale milestone puts Krisumi firmly on track to achieve its goal of crossing Rs 500 crore revenue in FY22,” said Mohit Jain, Managing Director, Krisumi Corporation.
“The pandemic has reinforced the significance of homeownership. It is indeed an opportune time to buy a dream home against the backdrop of economic stability prospects and conducive policy landscape. We foresee sales to gain further momentum in the coming months,” said Vineet Nanda, Director, Sales & Marketing, Krisumi Corporation.
Source : ET