Technology will be one of the key drivers for growth in Real Estate in 2022

18 Jan 2022 , 02:34 PM

The last two years have been revolutionary for real estate industry, with Covid 19 pandemic shifting the real estate trends and patterns.  While the sector initially faced challenges during the first wave of Covid, developers and real estate consultants implemented multiple strategies to revive the sector. Lower interest rates and stamp duty, unbelievable lifetime offers vested interest in the minds of home buyers.
The high volatility in stock market, fluctuations in mutual fund returns, currency benefit of the rupee-dollar exchange, made real estate an attractive asset for NRIs and HNIs. Improved infrastructure, decent rentals and clearance of inventory have added to the quick revival of housing real estate.

There was huge demand in the affordable housing segment, from the last quarter of 2020, which witnessed consistent demand in 2021 too. Consumers recognized the importance of owning a house. People living in rented houses, opted for purchasing a home, even if it was a small affordable house. Location, facilities, connectivity were deciding factor for consumers, along with the unbelievable complimentary offers, that were presented by developers.

The year 2021 witnessed rapid growth in housing real estate. Many unsold inventories were cleared off, especially in the metro cities. Developers and real estate consultants did good business during the festive seasons and special occasions. The year 2022 is also forecasted to be positive for real estate. Though the country is preparing itself for the new variant, Omicron, it is anticipated that the variant will not impact economy like the first and second wave. 

The growth momentum in real estate is expected to continue in 2022. Potential homebuyers are anticipated to pay for bigger homes, better amenities and attractive pricing with offers, which will keep them interested in sealing the deals. New launches and deliveries will take place, luxury housing will witness more growth in the metro cities. Demand for open spaces, sea- facing houses, courtyards is also expected to increase this year. It is also expected that sales will be better in affordable housing segment, which will continue to be the key business driver in real estate in 2022.

Foreign Direct Investments will also help in the growth of the sector this year. NRIs and HNIs will continue investing in the sector as technology and transparency have led to ease in investments.

The sector has enhanced its technology models to increase sales and reach out to consumers virtual interactions. Technology upgradations have been a game changer in the industry, as developers and consultants made optimum use of technology during the lockdown periods and reached out to consumers in the most innovative ways. From virtual tours, 3D visual effect in the virtual tours, usage of digital platforms has increased the consumer outreach in the last two years. Technology will continue to be the key driver for the sector and will help in increasing outreach in Tier 2 and 3 cities as well.

The overall markets sentiments for consumers as well as developers and real estate consultants too positive for the year 2022.

The author of this article is Mr. Honeyy Katiyal, Founder of Investors Clinic

The views and opinions expressed are not of IIFL Securities, indiainfoline.com