Real estate sector gets a boost in 2022 as consumers sentiment bolstered post COVID-19 pandemic: Report
3 min read 17 Jan 2023, 02:46 PM ISTThe year 2022 has been one of the brightest years for the Indian real estate in recent times, as youngsters preferred to own a house than living in rent for years, according to an annual report by NoBroker.
PremiumTwo years after being hit by pandemic, the real estate sector in the country gained momentum in 2022 as consumer sentiment bolstered citing historically low interest rates, government initiatives, and discounts offered by builders, said NoBroker in its yearly report.
Apart from residential sector, the commercial space too attracted investors and homebuyers. Weakening rupee value too made non-resident Indians (NRIs) feel persuaded to invest in India, added the report.
Among other thing, India's first proptech unicorn in its report said that several young owners or millennials switched to become home owners, who were known as the 'renting generation' earlier.
Commenting on the report, No Broker CBO and co-founder Saurabh Garg said, "2022 has been a promising year for the Indian real estate industry. Not only did we see an increased interest in homeownership but also an inclination to purchase larger homes and luxury homes. Consumer trends from our annual real estate report also indicated that plotted developments have once again become a desirable option for real estate investors as they offered better price appreciation and are free from property aging and wear and tear. The demand for gated communities increased and the average time is taken to rent out a property has reduced drastically."
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"Inventory crunch and rent increases have been the most visible trend as people returned to working cities and rejoined offices. We are of the opinion that rents will stabilize in the next few months and with construction activity in full swing, hopefully, the supply will match the demand. 2022 has been a healthy year in terms of demand for both rental and buying segments, and the momentum will continue well into 2023," he added.
Trends in 2022:
1) Loaded-up luxury:
As per the report, 2022 has been one of the brightest years for the Indian real estate in recent times. Key trends show that the luxury sector has been over-indexed, as homes priced above ₹1 Crore have seen a higher jump.
2) Rent inflation:
The second factor that worked for real estate was rent inflation, as rents across major cities have increased upwards of 12 percent.
3) NRI interest:
Many NRIs have made investments in homes with significantly higher ticket sizes. Accounting for the majority of demand, NRI chose India as preference, aprt from (USA, UK, UAE, Australia, and Singapore).
4) Land demand:
The growth in interest in plots is another trend that has emerged during the last one year.
5) Brokerage free:
This has to be one of the prime reason for growth in the real estate sector, as these days people are looking for houses with minimal or no brokerage at all. NoBroker claimed that it saved ₹4,000 crores in brokerage in 2022 across Bangalore, Mumbai Chennai, Pune, Delhi-NCR and Hyderabad.
6) Ease of moving:
One of the major trends among people to invest in real estate include ease of moving as 68% of tenants who took part in the poll mentioned that real estate websites have now made it simpler to relocate houses.
Who were the buyers?
Looking at the demography and data, people between 25-49 years and over 50 years invested most in homebuying, i.e. 36 and 37 percent. Profession-wise 53 percent of private sector employees bought home in 2022.
Reason for buying a home:
a) Expensive rent
b) High security of owning a physical asset
c) Increased affordability to buy homes.
d) Savings from pandemic
e) Getting married.
Preferences:
As per the report, Mumbai, Pune and Delhi buyers showed highest interest towards society flats, while a major proportion of buyers from Bangalore, Chennai and Hyderabad preferred buying an independent house.
Also, compared to cities like Bengaluru, Chennai, Delhi-NCR and Hyderabad, people in Pune and Mumbai showed much interest in buying proerties in suburbs, i.e. 39 and 31 percent respectively.
Key considerations:
Among the buyers, the key considerations include – budget, water supply, public transport connectivity, distance from workplace, size of apartment, amenities and appreciation of property price.
Top buyers localities of 2022:
a) Bengaluru: Whitefield, Electronic City, Krishnarajapura Sarjapur Road, Hennur-Kempegowda Airport Road
b) Chennai: Madipakkam, Perambur, Ambattur, OMR, Pallikaranai
c) Delhi-NCR: Golf Course Extension, Dwarka Expressway, Sector 150 Noida, Indirapuram, Dwarka
d) Hyderabad: Kukatpally, Miyapur,,Kondapur, Gachibowli, Kokapet Narsinghi
e) Mumbai: Thane West, Kharghar, Panvel, Malad West, Dombivli
f) Pune: Wakad, Hinjewadi, Hadapsar, Kharadi, Baner
The graph on people's perception towards buying a home in the metros in 2022, shows a lift in the real estate sector. It promises a great restart for the sector, however, how much it will sustain, will be an issue to be seen in 2023.
