How has real estate changed in 2022 and its impact on the economy?
By Shravan Gupta.
Real estate is undergoing a complete overhaul. According to market experts, 2022 will be the path-breaking year for the housing and commercial sector. The demand for new houses with better ambience has been on the rise and is expected to grow more in the coming months. It has made the market bullish about real estate in India. The latest projections have forecasted the growth in double digits in the real estate sector. Shravan Gupta is ecstatic about this latest development.
Pandemic has made real estate as a sector more resilient to any new changes. Something which is reflected in the latest trends.
- New learning curve.
Having been a witness to the sudden downfall in sales both in terms of housing, retail and commercial. This new resilience has made real estate the sector for any outcome. Real estate can now manage the curve better and are well prepared to handle any eventuality. Shravan Gupta feels real estate is projected to take a positive turn in the long run.
Real estate companies are better equipped to handle the situation now.
- A hike in price.
Real estate is going through a phase where prices are bound to rise again. This can be attributed to outside factors like the rising cost of cement and other raw materials. It may also be attributed to a sudden surge in demand for new houses and bigger homes. Shravan Gupta feels this trend will continue till the end of 2022. This bullish outlook on real estate is due to an improved economic outlook. It doesn’t come as a surprise that real estate is expected to grow at 8 to 9%.
- Cheap home loans.
The biggest selling point is the advent of real estate as cheap home loans. It has become much easier to buy homes due to the cheap home loan bonanza. Most banks are offering their customers home loans at as low as 7%. This makes for a profitable scenario and it is also the need of the hour. But in the long run, it may also lead to elevated pricing of newer home constructions.
- WFH culture.
The emergence of WFH culture has proven vital in elevated sales of homes. Today most people prefer to buy a second home with a large space for work. Shravan Gupta feels this trend is likely to continue in the coming year as well. WFH culture has also encouraged people to migrate from metropolitan to mid-tier cities like Indore and Goa. New constructions are being developed at a much cheaper price. This makes Real estate the new sector to watch out for.
In conclusion.
Real estate is on the rise and this will continue for a few more months. Shravan Gupta feels that real estate will account for 13% of India’s GDP. It is projected to be the 3rd largest sector with an optimum growth projection.
