Emerging Trends in Real Estate Investment in India: A Wrap-up of 2021
For the last two years, India has experienced many disruptions, thanks to a pandemic-ridden economy. With various pandemic waves being observed during different quarters, the real estate market was expected to be less volatile and suffer the brunt of the pandemic. However, to everyone’s surprise, the real estate market has seen an upward trend ever since the pandemic hit, with sales going higher even after the second wave. Data suggests, the residential, industrial, and warehousing segments accounted for 36% of the investments combined in 2021. The figure speaks for the ever-mounting impact of investing in real estate. When it was speculated that the pandemic would disrupt the real estate market, it did come as a surprise that the demand for homes and commercial properties increased. Though the demand growth was slower during the first two quarters as compared to pre-pandemic times, it gradually increased in the next two quarters.
The pandemic caused people living in cities to look for more spacious apartments with calm and peaceful locality, causing an increase in demand in the residential sector. For example, Karjat became one of the most developing areas near Mumbai attracting investment interest from many residents of Pune and Mumbai. While all sectors saw a rising trend, the residential real estate prices saw a rise of 5%. Residential segments thus outperformed others in 2021.
A look through the 2021 market demand has helped speculate the following trends in the real estate investment in India for the coming year:
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Commercial Properties :
In 2021, the top 5 IT/ITes firms showed an increase in their hiring and as more and more companies have started calling their employees back, there will be an increase in demand for office spaces. Even with the new Omicron variant, many organisations prefer co-working spaces that provide shorter and flexible lease terms.
Warehousing is another area where investment bore fruitful results in 2021 and is expected to do the same in 2022 too. This was one sector that never had a slow growth even during the pandemic peak.
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NA Lands :
NA lands have caught the eye of many urbanites who wanted investment security and larger returns from investment. NA plots offer great flexibility as the land can be used both for commercial and residential purposes and shows greater appreciation. While taking a decision all you need to do is find out the best place to invest in a property and then earn rewards from it. This trend will be observed a lot in the coming year, as buying a plot involves lesser risk and earns huge ROI. An investment away from the city is speculated to give higher returns in 2022. For example, a property in Karjat will be cheaper and give more returns than a property in Mumbai or Pune.
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Second Homes :
The most sought-after real estate investmentin the year 2020-21 was second homes. The pandemic had people wanting to own a home for a secured future. An interesting fact is, there was a rising demand for homes away from the city. Work from home being the new norm, people now wanted to have a house away from the hustle-bustle of city life. Whether people were looking for a new home or a second home, the same trend was observed. If we are to look at Mumbai, a great demand was observed for real estate investment in Karjat. It has become the best place to invest in a property in recent times with major developments happening all around Karjat and the property rates not being so expensive. 2022 will see more of such real estate investment in Mumbai and Pune. Holiday home being another in the lot attracting huge interest.
The rising trends and changing habits of people, wanting to own their own homes and the rent demand ever-increasing forecasts a glorious year for real estate investments in India. 2022 is expected to be a fruitful year for investment in every segment of real estate.
