Housing prices set to increase by 5%: Report
After a series of structural reforms like demonetisation, GST, and RERA in the last decade, the pandemic arrived as another blow for the sector
Housing prices is set to increase by 5% next year owing to improved demand. In its ‘2022 Outlook Report’, the property consultant said, 2021 was mostly impacted by the volatility due to the pandemic, 2022 may prove to be a more stable year for the sector both for commercial and residential sector.
The report said that sales momentum is expected to continue in 2022 as prospective homebuyers’ preference for bigger homes, better amenities, and attractive pricing will keep them interested to seal the deals in the housing segment.
Realty sector expected to cross pre-pandemic levels
After a series of structural reforms like demonetisation, GST, and RERA in the last decade, the pandemic arrived as another blow for the real estate sector.
It added that the period between 2011 and 2021 indicates many of the supply and demand-side factors have started putting upward pressure on house prices and as a result, we project around 5% increase in 2022.
Despite the exigencies from the pandemic in 2021, the real estate sector recorded a smart recovery with segments like residential outperforming others, the report said.
It also said that the disruption caused by the pandemic is settling down slowly and the real estate market is expected to gain back its rhythm in the next two to three quarters, albeit, the threats of the new variant is adequately contained with minimum disruption in the early part of the new year.
Further, the the real estate sector will see an adequate recovery to match or indeed cross the pre-pandemic levels, if the current pace continues, it added.
Knight Frank said that the top five IT companies’ incremental demand for office space based on robust hiring in the last eighteen months is estimated at 11.67 million square feet, spread out over the next one to two years.