The COVID-19 outbreak has defied practically every economic forecast from the start. To many, the real estate market may remain relatively unchanged since the pandemic. That isn’t the case. Some marketplaces and industries have permanently transformed. Behavior has also altered due to the outbreak, affecting the demand for many real estate assets. As a result, many businesses have incurred losses, and some have profited in recent years.
The world is still rebounding from its losses, and conditions are improving slowly. However, new trends in the real estate industry are coming into place. These are likely to shake the market. If you wish to dive into these trends, keep referring to our extensive guide on the top 5 upcoming real estate trends in 2020.
Top 5 Upcoming Trends in the Real Estate Market:
Here are the most significant emerging trends of real estate sector in 2022. Take a look to find out. The residential market prices are anticipated to increase again after a long duration. In 2022, a 5% increase is projected in capital value for the residential property category.
Numerous supply and demand-side issues that have been evaluated in the last 10 years have begun to impact property prices. In 2022, the sales trend in the residential sector will probably keep growing, as potential customers’ demand for larger houses, more lavish facilities, high-grade specifications & other general requirements for an elevated lifestyle.
Collectively, this will lead to a significant increase in property prices, which might again shape the market differently for this financial year.
Increased Mortgage Interest Rates:
Looking at the current real estate trends, it is expected that mortgage rates will rise significantly in the upcoming times and might stifle sales activity. Furthermore, growing inflation has already resulted in considerably greater prices in the real estate business, including increased building materials, energy, and utility rates.
On the other hand, growing rents have aided landlords in recouping these costs in real-time. Real estate prices are also expected to rise due to a shortage of supply and growing income returns.
Rents have risen even far faster than mortgage rates and costs, resulting in excellent purchase prices and financing. Property prices will increase in tandem with increased net operating income.
The Budget Impact:
From the real estate industry outlook, it is predicted that it will contribute to 13% of India’s GDP by 2025. Hence, the budget is critical in determining the sector’s development trajectory and its overall influence on the economy. The housing market remains positive despite the arrival of the new COVID-19 variants, and it is expected to see further growth.
Amid other measures, such as debt financing for REITs and InvITs, and structural enhancements, affordable housing is achieved by a rate tax reduction on house loans.
The impact of these initiatives has established a firm basis for the sector, resulting in the promotion of affordable housing and the leased housing market through the budget. Other perks, such as extending rate tax discounts on house loans for another year, are also anticipated as the government aims to develop 20 million affordable housing units in metropolitan areas.
The budget seems to be quite promising for the real estate business. Developers also have long requested new laws to promote rental housing, single-window approvals, and infrastructural status for the industry.
Demand for space:
The need for office space is increasing day by day. Businesses are testing innovative working techniques to maintain the well-being of employees and business profits while keeping a flexible workplace as the determining factor. The expansion of a hybrid staff across several workplace alternatives, including flexible offices, has been the most apparent change.
Flexible workspace operators have the goal to elaborate their portfolios in the next 2 to 3 years with the increased demand for employee flexibility and portfolio re-optimization. Demand for space will be another real estate trend in India this year.
Buying Properties Instead of Renting:
The typical pattern has begun to change as the world is recovering from the pandemic. The inventory overhang began to shrink, and buyer and market volatility began to improve. Prices are rising again after a static period, and the market is starting to move up.
In most Indian cities, the government has already made inexpensive home alternatives available to potential purchasers. When you consider the low-interest rates on home loans, it’s easy to see why buying rather than renting is better.
The trends mentioned in the article are most likely to determine the prosperity of the entire real estate market. While most of these trends have promising outcomes for real estate businesses, some might be a cause of vulnerability. Hence, you must do extensive research before engaging in real estate to reap maximum benefits. You must also remember that the real estate markets have their own set of risks and perks, which change from time to time.
Also, if you are the one who wants to make an informed decision by investing in the real estate market, consider projects by Runwal Group as some of best choices. Established in 1978, Runwal Group has a legacy of 65+ successful projects with the unmatched trust of 30,000+ families. One can surely fetch a great ROI with Runwal Projects in the near future!