India’s Real Estate Sector is expected to be more stable and perform well in 2022

As per the recently shared reports, the residential and commercial real estate sector in India is projected to have a relatively stable year in 2022 compared to 2021. There is an increase of 5% in residential real estate rates while the recovery in the office sector is expected to keep rents stable in the coming year.

The momentum in residential sales shall continue to attract prospective homebuyers’ who look for bigger homes and the best amenities in 2022. Here also, the pricing of these properties would seal the deals. Ankit Aditya Pradhan, Founder, and CEO, Realty Assistant, commented – “Despite the unprecedented market changes during the pandemic, the real estate sector has made a good recovery in 2021 while the segments like residential spaces are outperforming others”. The interruption triggered by the Covid pandemic is settling down slowly, helping the real estate sector gain its fast-paced rhythm in the next two to three quarters, he said. The real estate market will surely match the pre-pandemic phase if the industry continues to work at a similar pace.

A report released by Knight Frank highlighted that the Indian real estate sector could perform well in 2022. The property consultancy expects different segments of the market to continue growing despite the effect of the Covid-19 pandemic.

Since the physical offices are here to gain momentum, portfolio optimisation and hybrid working are also expected to be the dominant themes going forward. The sector is driven by incremental demand from IT/ITes firms. In addition, the Datacenter space is also expected to pick up in the coming year. If we talk about coworking firms, the segment will also get a good start as the pandemic reinforces the need for agility. The demand for flexible coworking spaces will also increase as we return to normalcy. Net Operating Income (NOI) and Net Distributable Cash Flows (NDCF) for REITs have remained relatively steady and also grown and stabilised in 2021.

Overall, India is becoming one of the preferred locations for Global Shared Services companies. These companies are expanding their business, which shall further fuel the active and high demand for office spaces. Other prominent segments such as product and technology companies are also in a growth mode, further resulting in more significant real estate requirements.