From demonetization at the end of 2016, to the problem with non-banking financial firms (NBFCs), to eventually Covid, which disrupted supply and demand, the real estate business has witnessed a lot of changes in the last few years. The Real Estate (Regulations and Development) Act of 2016 (Rera) faced early hurdles, as does any new legislation in any industry.

While there are still some challenges for purchasers, such as rising interest rates and pricing, industry analysts predict that the real estate market will increase in the future.

India is the world’s fastest-growing major economy, and the Indian government’s massive capital expenditure program promises a big increase in employment and the start of a new consumption cycle for the country. Real estate will be an important area to keep an eye on.

After agriculture, the real estate industry in India is the second-largest employer. India’s real estate industry is predicted to grow from US$ 200 billion in 2021 to US$ 1 trillion by 2030. It will account for 13% of the country’s GDP by 2025. The emergence of nuclear families increased urbanization, and rising family income is projected to remain the primary drivers of real estate expansion in all sectors, including residential, commercial, and retail. Real estate development is being pushed by the country’s rapid urbanization. By 2020, metropolitan regions will account for around 70-75 percent of India’s GDP.

In only one year, India’s real estate business sold almost 1,700 acres of land in the top seven cities. Between 2017 and 21, foreign investments in commercial real estate totaled US$ 10.3 billion. Developers anticipate a surge in demand for office space in SEZs once the present SEZs legislation is replaced in February 2022.

Institutional investments in the Indian real estate market are predicted to rise by 4% to Rs. 36,500 crore (US$ 5 billion) in 2021, owing to growing investor interest in capturing excellent prices in the face of the epidemic. Private equity investment inflows into India’s real estate industry were US$ 3.3 billion between January and September 2021.

In 2021, despite the pandemic, the real estate sector had a wonderful year. A surge in housing demand has resulted from increased awareness of health, sustainability, future security, and solid investments. The residential sector was quick to implement digital solutions to keep business operations running and was better equipped to withstand pandemic shocks this time.

Supportive government policies, customer-friendly low tax regimes, low-interest rates for loans, solid investments, digitization, and, most importantly, the recognition of real estate assets among purchasers as a guarantee of a safe future boosted consumer confidence and market emotions. Residential real estate has evolved into a buyer-centric market, and the industry has a bright future ahead of it in 2022.

As a result of the pandemic, numerous new trends in the residential sector emerged, encouraging real estate developers to accommodate the changing tastes of purchasers. Due to trends such as work from home, e-schooling, reverse migration, and the desire for a house with wide areas amidst lush vegetation, Tier II and III cities emerged as unquestionable winners and drew potential purchasers. In addition, flexible employment regulations have prompted many to explore housing options in their hometowns. Housing demand in growing places has been bolstered by affordability, world-class infrastructure, strong connectivity, fewer traffic jams, low pollution levels, affordability, and a higher quality of life.

Buyers’ preferences have shifted dramatically, and they are now looking for larger apartments with adaptations such as huge open spaces, additional rooms, contemporary conveniences, dedicated office spaces, study rooms, workout and entertainment zones, balconies, and other amenities for a luxurious lifestyle. Buyers are increasingly looking for contemporary homes in areas with well-developed social infrastructures, such as retail complexes, schools, hospitals, and banks, as well as movie halls, restaurants, and other amenities.