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View: Real estate sector revival to continue into 2022

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The realty sector in India is one of the pillars of the economy and is the second-most elevated business generator in the country after agriculture as the sector is interlinked to 250+ allied industries.

View: Real estate sector revival to continue into 2022
The real estate sector has made an impressive revival despite disruptions and market upheavals during the pandemic. Analysts have a positive outlook that this revival will continue into the New Year. The sector has transformed into a buyer’s market, and today, with an evolved sense of preference, buyers are focusing on customised offerings to make ideal investment decisions.
As per a recent report, nearly 80 percent of prospective home buyers prefer to purchase properties that are ready to move in or nearing completion. While work from the office has re-emerged, ‘work from home’ may not entirely go away as it is now an integral part of long-term work strategy.
Moreover, a blend of positive factors like low home loan interest rates, customer-centric regulation, affordable property prices, developer offerings on new products and payment flexibility has prompted even fence-sitters to make the purchase decision, sooner than later. Thus, buoyed by strong economic fundamentals and a conducive business climate, 2022 is expected to unlock a plethora of opportunities for Indian real estate.


We can see significant changes in consumer behaviour and market sentiments in real estate as the pandemic continues to ebb. Buyers are first researching projects digitally and are gaining more knowledge about them before physically visiting the projects and making decisions. Homeownership has become a priority, with businesses focusing on remote work – and homebuyers’ need for bigger spaces. Hence, customer-centricity is defining the Indian real estate sector and it is important to recognise this shift in their outlook towards property purchase.
The positive performance of the residential sector followed by good execution in recent times are important signs that momentum in home buying will continue to persist in the near future. With pent-up demand, an upswing in the job market, the mass rollout of vaccines and the lowering of infections, the real estate industry is bouncing back.
These factors will play a key role in boosting demand and pave the roadmap for a vibrant housing ecosystem. The festive season too has added to the already positive outlook that home buyers have been exuding in recent times. In fact, the industry has shown positive recovery with great momentum, taking the sales to pre-COVID levels within months after cities have returned to normalcy.
A recent report has announced new residential unit launches increased by 90 percent in Q3 2021, a significant recovery compared to launches last year.In this renewed demand, ready-to-move-in spaces are the top priority among discerning customers who do not want to wait endlessly for their properties given the background of the pandemic.


These homes are a safe investment option in today’s world where preferences are changing rapidly. While buying a home, customers are also now increasingly looking for reputed developers with an excellent track record, execution capabilities and quality projects. Developers are also increasingly relying on emerging digital technologies to deliver smarter experiences.
The real estate segment has remained the safest investment option and will continue to attract investors keeping market sentiment buoyant. The increase in demand is organic as it is driven by the realisation among buyers that owning a home in the midst of the pandemic is invaluable.
The trend of demand remaining buoyant can be attributed to several other factors, including the overall improvement in the job market, resumed economic activity, pent-up demand and an increasing desire to own physical assets during times of unprecedented uncertainty.
The realty sector in India is one of the pillars of the economy and is the second-most elevated business generator in the country after agriculture as the sector is interlinked to 250+ allied industries. The sector represents almost 6-7 percent of the economy and is set to increase to around 13 percent by 2025. All in all, the future will be a harbinger of positive growth, innovation and investment for the residential real estate sector.
—Anjana Sastri is the Director of Marketing at Sterling Developers. Views expressed are personal.


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