Trends That Will Change Real Estate In 2022

The year 2022 for the Indian real estate sector will go down in history as the year of overall recovery of the sector. It will be riding high on additional inventory with new project launches, homes of all configurations and budget homes to luxury homes pan India.

The real estate sector, along with NAREDCO and other real estate industry associations, successfully handled the COVID-19 outbreak and, with government support, ensured sales momentum even after phase-wise unlocking in 2020 till Dec 2021. And the year 2022 will ride high on some of the important trends that will get the entire real estate ecosystem back on track, supporting 250 plus ancillary industries. The coming year will see new housing stock, commercial real estate, upcoming retail, newer employment opportunities with more jobs, increased trade and commerce, and happy home buyers.

So, let us take a look at what is projected for real estate in 2022 that will attract buyers and investors to invest in the real estate asset class.

Return of inventory

With the real estate sector inventory having hit the lowest and supply almost drying up, the biggest hurdle due to lockdown in 2020, the year 2022 will be a turnaround on the inventory front. With newer launches lined up by almost all developers, buyers can breathe a sigh of relief as added inventory will end the dearth of homes. Secondly, buyers will see varied options suiting their budget. The market inventory will be a mix of 1 BHK, 2 BHK and 3 BHK compact homes to larger 2 BHK, 3 BHK and luxury / uber-luxe apartments. We will see a demand to supply ratio gap further reducing with increased newer project launches. So, the year 2022 will see buyers spoilt for choice.

Demand for safe-haven

With the pandemic still hovering around and the new variant, Omicron, already at the doorsteps, homes away from neighbourhoods and localities will see tremendous demand. The likes of villas, plots, independent homes away from the city will continue to be a hot proposition, with the work-from-home scenario to continue for another two to three years. These investments in the properties offering a bubble environment will continue to see a good response from buyers who do not want to live among communities for their safety and security considering the pandemic.

Commercial real estate

With the Indian economy crawling out of the COVID-19 pit witnessing a K- shaped recovery, the real estate sector piggybacked on the same to register new highs in residential sales. The resurgence of the economy has reopened the commercial real estate prospects, with companies, offices, and corporates going back to pre-pandemic work mode. The increased demand for office spaces for physical and hybrid office space, data centres, IT, co working spaces, back office, business centre, commercial and business parks, industrial properties, warehouses, etc., are expected to see robust demand with workforce moving back to office work culture. However, 40 percent of the workforce working in multinational companies and call centres will continue to work from home for another two to three years and only return to physical workstations after complete normalcy. Thus, with the Indian economy showing faster recovery, the demand for commercial real estate will see a good uptake in 2022.

Smart homes smart living

The arrival of COVID-19, having impacted normal walks of life, proved to be a catalyst for digital transformation with life moving indoors. With everyone pushed to adapt themselves to the pandemic lifestyle overnight, digital technologies, viz., the internet of things (IoT) was the new normal. The work and study from home adaption were overcome by embracing technology to its best. As more companies / educational institutions continue to ask people to continue working/studying from home even after the pandemic is overcome, we will see developers providing smart homes with IoT automation to create a more comfortable work/study environment.

And with COVID-19, which led to living smartly, there will be good demand for such automated homes as they provide better security and also an upgraded standard of living. Embracing this demand, it is brought to the attention of the developers to focus on automated homes made available in the 1 BHK budget.

Connectivity and micro-markets

Infrastructure and connectivity will be key when it comes to purchasing real estate in upcoming micro-markets in 2022. Any property location with ready infrastructure and good connectivity will score over all the other parameters when it comes to purchasing a home. So, projects which are strategically located and connect all the important dots for convenient living will drive sales in 2022. Micro-markets with increased impetus on providing living options closer to their workplaces will see increased demand for homes. Realty firms are also zeroing in on new areas like Vikhroli, Chandivali, Mulund, Bhandup, Goregaon, and so forth, which are also small business districts and offer good work-life balance. So, the year 2022 will be for micro-market projects offering impeccable proximity to all the essentials in life, thereby increasing the property's valuation over time.

Township and sustainable living spaces

Townships have been, without a doubt, the significant way of life centre for home searchers. There are various motivations behind why townships are considered one of the most current and most secure practical lodging choices. Townships being the answer to rapid urbanisation issues, offers a living habitat with the solace of being disconnected from the hustle and bustle of the city. Townships being integrated with nature is the future of living and will be in focus in 2022.

Electronic charging parking lots

With the world moving towards a sustainable lifestyle, home appellants seek EV charging parking lots. Numerous legislatures and driving land designers are going to lengths to guarantee essentially impending private edifices have satisfactory vehicle charging spots as EV reception takes the nation over. Potential occupants need EV charging as an inbuilt convenience in their homes, similar to central-air cooling systems. With residential communities shifting their focus to electric vehicles, projects that offer or have installed EV charging lots will see robust demand in 2022.

Co working spaces

With the resumption of office work for most industries, employers and employees are wary of working from home and are making a comeback. However, companies and industries that have taken a hit during the pandemic are starting back with a smaller workforce and co working spaces with a new variant, Omicron around. A comeback as part of an emerging hybrid work model is here to stay for some time, and hence flexible and co-working office spaces will be an attractive proposition for the year 2022. This is one such segment with ample benefits for companies, these being smaller lease terms, and tailored operational cost, along with safety and wellness amenities. As the workforce evolves, the market will see increased demand for co-working spaces considering the dynamics of the businesses in the short and long term.

The pandemic amplified a continuous shift away from costly midtown markets and toward more modest, more reasonable ones. Subsequently, organisations need to remain agile. The major trends seem to be affordable housing, safe living options, increased convenient living spaces, townships or community living, good connectivity and infrastructure, budget homes, real estate investments, co working and yes, sustainable living for the entire 2022. Hence, all these factors are primed for growth with residential and commercial markets to see elevated demand.

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