Indian real estate industry on the road to recovery

Residential and commercial sectors to pick up momentum in 2022

Improving market sentiment on the back of a recovery in the economy has instilled confidence amongst developers. SNEHITPHOTO/Shutterstock

In 2021, Indian real estate has demonstrated a swift recovery and stable performance that restored the trust of both buyers and investors, further driving growth in the industry, reported Hindustan Times. 

The positive sentiment from the past year spilt over in 2022, as activities and transactions within the residential and commercial sectors begin to surge. 

According to the Deccan Chronicle, the Residential Market Update for Q4 2021 by JLL revealed that Hyderabad had the highest number of apartment launches in the country at 26.1 percent, followed by Pune at 17.6, Bengaluru at 16.4, and Mumbai at 16.1. The report also noted that Hyderabad nearly topped the pre-Covid residential sales levels, which is a clear indication of the growing confidence of the buyers. 

“Improving market sentiment on the back of a recovery in the economy has instilled confidence amongst developers as they strategically launched projects across cities to tap into the demand recovery underway,” the report stated. 

To keep up with the demands, Hindustan Times added that the residential sector has embraced innovation and digitalisation in its day-to-day processes. Buyers have also shifted their needs to residences with best-in-class amenities since the dawn of flexible work schemes. 

“The work from home has emerged as the dominant undercurrent for shaping homebuyers’ preferences. We expect buzzing home sales activity to persist, the city’s periphery to maintain its top spot as the most in-demand region and flexible work options to continue to shape housing decisions in new ways in 2022,” explained Mohit Jain, managing director of Krisumi Corporation. 

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As for the commercial segment, CBRE’s Asia Pacific Office Trends Q3 2021 report uncovered that the office leasing activity in the country reached 13.5 million square feet, a 140 percent quarter-on-quarter increase. 

“The pandemic-infused changes have propelled the demand for flexible office space and hybrid models not only in the metro but in tier 2 cities, as well. Owing to the aggressive government policies, propelling business ecosystem, companies’ expansion plans, new and emerging trends, 2022 is expected to witness the increased demand for Grade A office space,” said Abhishek Pandey, the vice president of customer engagement & distribution at Viridian RED.

The Property Report editors wrote this article. For more information, email: [email protected].