The luxury real estate market to see robust growth in 2022-23
By magnoliaAdmin | Apr 29, 2022
The recovery momentum in Indian residential real estate witnessed in 2021-22 is expected to continue in the current financial year 2022-23, as per rating agency Indian and Research (Ind-Ra) while maintaining an improving outlook for the luxury residential real estate for the ongoing financial year. The luxury real estate market is to see robust growth in 2022-23.
Due to the looming threat arising from the spread of the COVID-19 pandemic, everyone was skeptical about investing in real estate. The industry bounced back with great momentum and sales hiked to new highs.
According to a survey report, HNIs and the ultrarich investment are ready for the investment market, basically in the property of over Rs, 5 crores. Presently, housing sale boosts and increased demand are end-user-driven and not conjectural. Hence, the price hike will be sustainable and is likely to be incremental. The price was up 6% Pan-India in 2021-22, Indian Ratings reported.
The top 8 cities in India are Gurugram, Pune, Kolkata, Delhi, Mumbai, Chennai, Bangalore and Hyderabad are poised for favorable housing sales, sowing the seed for the revival of commercial real estate as well.
Homebuyers are benefiting in terms of savings in mortgage rates. Low mortgage costs and reduction in stamp duty charges accompanied by a rising income level in most of the sectors especially IT/ITES, BFSI, and pharma have led to improved affordability in the market.
Housing demand has significantly hiked with a substantial push from millennials. India is home to over 400 million millennials, comprising 1/3rd of the total population and 46% of the total workforce, which keeps on increasing year on year. The high influx of immigrant population into metropolitan cities every year also adds to the existing workforce. So the luxury real estate market is to see robust growth in 2022-23.
In case, one of the key trends observed in the luxury property market is the investors’ affinity toward the commercial space. In the metro cities, commercial showrooms and office spaces were available in upmarket locations. Owing to the COVID-19 pandemic-induced slowdown, the price rate was not that high and investors did not hesitate in cashing in on such opportunities.
The property experts believe that owing to the supply chain problems due to the pandemic situation, the supply of high-end luxury properties might take a bit to pick up, but the market is resurgent showing positive trends encouraging property investors to start investing.
-By Moon Sarkar