Despite the extended disruption caused by COVID-19 and the Omicron variant, the Indian residential real estate sector continues to pull funds, establishing its demand and stability over other asset classes. The sector has swept the limelight by significantly contributing to the country’s overall GDP, making the economy more promising and vibrant.
NITI Aayog anticipates that by 2030, the real estate market of India will touch a whopping $1 trillion and account for 13% of its GDP by 2025. This surely depicts the chivalrous streak of the real estate industry.
Read on to know why and how residential real estate projects are emerging as a preferred asset class!
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Why is Residential Real Estate Becoming the Preferred Asset Class?
In the first financial quarter of 2022, the industry witnessed a surging demand for large and luxury housing. People wanted spacious ultra-luxury housing units that could complement their multi-functional lifestyle.
After the lockdown, people realised the essence of possessing a dedicated study and work space, comprising a leisure corner. Modern lifestyle means investing in additional rooms, smart devices/gadgets, modern kitchenettes, gyms, balconies, and chic interiors. This trend is further expected to rise substantially throughout the year.
Investors are also looking for budget homes in the medium-price range category. As a result, this class is anticipated to encounter a surge in demand from homebuyers, establishing them at the forefront of project launches. Besides, luxury and ultra-luxury units are also envisioned to increase customer interest.
Another significant reason for residential unit sales is that the residential sector is increasingly adopting new concepts and creative solutions to fulfil the needs of millennial homebuyers who are excited about owning a home.
Additionally, stringent rules and regulations and government incentives have encouraged the boom of the residential real estate sector, with various first-time homebuyers stepping their foot in the market.
see also – Gurgaon’s residential real estate market to revive soon
Sales of Residential Real Estate Units in 2022 in India
Knight Frank, a global real estate consultant, released a report which stated that 78,627 residential units were sold in India in the 1st quarter of 2022 (January to March), even though the third wave of COVID-19 created mayhem across the country.
The report further stated that the residential units priced beyond ₹ 1 crore created more sales for the quarter.
The latest survey by Knight Frank India also confirmed that India witnessed the highest sales of residential real estate units in the first half of the calendar year 2022. The sale is deemed at a nine-year high with 158,705 units sold across eight metropolitan cities, including National Capital Region (NCR), Mumbai, Pune, Bengaluru, Kolkata, Hyderabad, and Ahmedabad.
Not only residential real estate has become the popular choice of investors, but also the backbone of the economic recovery and prosperity of India.
