The Indian real estate market is currently at a pivotal point. With the negative effects of the Coronavirus outbreak progressively fading, things are looking good for India’s real estate sector in 2022 and beyond. Thisshift in the industry is taking place fuelledby a positive growth in demand, backed by technology as well as various consumer-friendly policies.Let’s dive further into the current scenarios in the Indian residential sector and where it is headed in the near future.
Proptech is here.
Proptech, or property technology, is described as the application of technology and software to meet today’s real estate needs. Like almost everything else, most real estate needs have also shifted online due to the pandemic, from construction to real estate sales. This trend is expected to continue in the foreseeable future. Moreover, the real estate industry has reached a tipping point in terms of maximizing the use of cutting-edge technologies. For instance, According to the National Association of Realtors, 87 percent of people think photographs are very helpful, and 46 percent think virtual tours are very helpful. Similarly, digital launches, 3D property viewing, augmented and virtual reality-based design projects, and virtual property exhibits have all broken free from the confines of boardroom meetings and are now being used in the real world, painting a positive picture for the sector as a whole and provides a significant boost to NRI buyers.
Back on a shopping spree.
With COVID-19 coming under control, property ownership is gaining a lot of traction. According to the latest ANAROCK Research statistics, quarterly housing sales in Q1 2022 reached an all-time high since 2015, with roughly 99,550 units sold across the top seven cities. This represents a 71 percent increase over the 58,290 units sold in the same quarter last year. Although this has aided in forming good consumer sentiment toward residential real estate, it was the government’s support and the banking industry that got things started. With Covid being effectively contained, people want to live, exercise, and enjoy life in new ways. Consumer attitudes are shifting due to these deciding factors, leading to a surge in demand for larger and better homes. Moreover, according to a recent consumer mood study conducted by Housing.com, as more companies embrace work-from-home and hybrid work policies, homebuyers are showing an interest in larger houses.
Growing demand from NRIs
NRIs, particularly those from developed nations such as UAE or the United States, are viewed as high-potential clients in the real estate market. Because of the lifestyle they enjoy in the country they are staying in, NRIs are choosing for larger, more affluent homes. Furthermore, many NRIs are shopping for homes for personal use rather than investment, reversing a previous trend. According to 360 Realtors, NRIs spent $13.1 billion in the Indian real estate market in FY21, and the inflow is expected to expand 12 percent to $14.9 billion in FY22. Luxury houses will see increased demand as more NRI property purchasers seek to return to India. Following the pandemic, NRIs are concerned about their health, and projects that address this issue will benefit the most. NRIs are inquiring about the property’s supplementary features, and we’re getting a lot of them.
What the future looks like
Because consumer sentiment influences how a sector performs, India’s housing market is expected to rise strongly in the near future, thanks to positive sentiment drivers. Despite the various problems the sector has encountered, demand and supply indicators have steadily increased lately, demonstrating positive sentiment. However, for the sector to improve in the coming year, the banking sector will have to continue to offer home loans at reasonable rates, the government will have to continue introducing new housing-related policies to facilitate buyers and builders, and the builder community will have to continue to make concentrated efforts to make home purchases convenient and affordable for end-users. Moreover, there is a need to infuse more equity capital into the market to fuel further growth.
To conclude, things are looking bright for the Indian real estate market. Demand is showing robust growth as the pandemic subsides, aided by the revolutionary Proptech, making it easier for buyers to find and buy properties. And it’s not just the domestic buyer who is on a buying spree. Many NRIs are now shopping for residences for personal use rather than investment, in a reversal of a previous trend, thanks to various buyer-friendly policies floated by the government. It is pretty clear that there is a lot of newfound trust in this sector. Are you ready to be a part of one of the fastest-growing real estate market in the world? We would love to hear your views.