The housing market trends and prospects in India in 2022
The Indian economy is showing signs of recovery after a difficult two years marked by the Covid-19 epidemic. The majority of economic indices have either surpassed or come close to pre-pandemic levels. On the back of the previous year’s low base, the country’s central bank forecasts GDP growth of 9.5 percent for Financial Year (FY) 2022. This increase in economic activity is predicted to boost the real estate industry, with residential, office, warehouse, and data centers expected to attract the greatest attention.
The residential market is doing well
Residential prices are anticipated to begin increasing again after a long period of decreasing and then stabilizing. In 2022, we forecast a 5% increase in capital value for the residential property category in the country. Many market forces factors that were studied in the preceding decade have started to put upward pressure on housing prices. The residential sales trend is expected to continue in 2022, as potential homebuyers’ need for larger residences, more amenities, and competitive rates will keep them engaged in concluding deals.
The uptick in lease momentum in the Information Technology Sector will propel office markets. According to Knight Frank Research, the top five IT businesses’ incremental need for office space will be over 1.08 million square meters (11.67 million square feet) in the near future, based on hiring in the last 18 months.
In a flexible occupier workplace plan, coworking is a viable option
Businesses aim to keep most cost components flexible in the unpredictable circumstances produced by the COVID-19 epidemic. The co-working industry will profit from this shift in planning patterns, as the epidemic emphasizes the need for adaptability like never before. Notwithstanding the comeback to sanity, the need for flexible office spaces will rise due to agility, a keyword linked with the co-working industry.
Datacenter expansion will be fueled by digital demand and legislative incentives
With the impending deployment of 5G and data localization standards, the requirement for data storage to be closer to consumers becomes even more critical, necessitating a rapid expansion of the country’s data center capacity to satisfy the demands of the country’s user population. We predict that roughly 290 MW of IT load will be added to the market in 2022, bringing the total-built IT capacity to 735 MW by the end of the year, based on the considerable volume of capacity now under development.
The warehouse industry will gain from the e-commerce growth
The e-commerce category will fuel warehousing growth, with its proportion of total warehousing transactions rising to 36% in FY 2023 (Financial Year April-March) from 31% in FY 2021. In FY 2023, overall warehousing transactions are expected to expand at a compound annual growth rate of 20%. In this situation, occupiers’ storage strategy will be influenced by speed and technology.
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