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India’s 2022 housing market outlook

by Diplomatist Bureau - 24 February, 2022, 12:00 633 Views 0 Comment

Real estate has had to adapt and change over the past few years. It is predicted that the property market in India is set to benefit from increased activity in the coming months. 2021 saw the perfect conditions for first-time homebuyers due to benefits such as cuts in registration and stamp duty. The question is, what will happen in 2022? Will these same trends continue in the property market?

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House Prices

According to Knight Frank, Indian house prices are set to rise by 5 percent in 2022. After the volatility of the last few years, greater stability is predicted for this year. The main reason for this increase is due to supply and demand factors. In 2021, the residential property market saw a growth of over 50% in the country’s top cities. The worldwide jump in the property market was unexpected and surprised everyone. The increased activity in the property market was hugely influenced by the record low interest rates brought into place across the globe. People also saw more value in bigger and more flexible homes because of their changing lifestyles. Despite the changes to interest rates due, the rest of 2022 will be another competitive year for homebuyers looking for bigger houses with better facilities and amenities.

Rental Property

Over the past few years, record all-time low interest rates opened up an irresistible opportunity for many first-time buyers to get onto the property ladder. However, interest rates are set to rise again over the coming months, meaning that the rental market is predicted to see an increase in competition again, with renting a more viable option than buying. When weighing up whether now is the time to rent or buy, get advice from an expert mortgage adviser like Trussle, who can quickly assess your finances and whether you qualify for a home loan. With an online mortgage calculator, you can easily compare potential mortgage repayments and compare this to the predicted rental prices in your area.

Source: Pixabay

Office Space

There has been a considerable shift in our working habits and in how office spaces are used. 2022 will see a gradual return to a more normal working environment, but with an increased need for more flexible and agile working spaces. Businesses are looking for hybrid working spaces to fit with the increasingly flexible working culture. These changes are reflected in office market performance, with record-high transactions in 2021. With the booming eCommerce sector, the demand for warehouse space is set to increase to 45.9 million square feet by 2023 and an increase of 20% compared to 2021. Despite the fact that prices will potentially rise by 5-8%, it is still a buyer’s market, once prices do not increase too much, of course.

2022 certainly looks like it will be a year of recovery for both the commercial and residential property markets, with most predictions putting the market at pre-pandemic levels, of course, changes in the property market and closely linked to increasing inflation and remain changeable.

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