Growth in the luxury home sector, an increase in NRI interest, a surge in demand for land, and rent inflation were some of the most prominent trends in the Indian real estate market in 2022, according to Saurabh Garg, Co-founder and Chief Business Officer, NoBroker.com.

“The real estate market in 2022 saw significant swings in demand and purchasing attitude combined with policies such as historically low borrowing rates, government programmes, and developer discounts to fuel demand for real estate, resulting in record levels of activity in the industry,” explained Garg, citing NoBroker.com’s new survey report.

Trends 

While interest in homeownership has increased overall, the luxury sector has been over-indexed. “Homes priced above ₹1 crore and ₹2.5 crore have grown faster. The homeownership sentiment remains strong despite hardening home loan rates and increases in home loans and property prices,” said the report.

Due to the declining value of the country’s currency against the US currency, the market saw significant NRI investments in 2022, especially in homes with higher ticket sizes. The report states that the NRI segment has grown by 33 per cent, with five countries accounting for the majority of demand: the US, UK, UAE, Australia, and Singapore.

Rents across major cities have increased by upwards of 12 per cent. The growth is driven by an inventory crunch as supply has not kept pace with demand. While companies increased employee headcount during the work-from-home phase, construction activity had come to a grinding halt. It will take a few months for it to stabilise.

There is a strong tendency for buyers to purchase RTMI (ready-to-move-in) properties — 78 per cent — but this year also saw an inclination toward plots, with 12 per cent looking to buy plots and 10 per cent looking to purchase properties in under-construction developments.

While ready-to-move-in properties were most in demand in Delhi NCR with 85 per cent of buyers, plots were seen as most in demand in Hyderabad with 17 per cent. The report states that there is an inclination toward ready-to-move-in properties because buyers are exactly aware of what they are getting and project delays are not a concern. Moreover, there is no GST on RTMI properties.

Other preferences

Of the total surveyed people, 54 per cent preferred buying a society flat, owing to the security that comes with staying in a gated society flat along with access to modern amenities like a gym, and sports facility. While independent houses accounted for 37 per cent, plots accounted for 9 per cent.

Data from the report shows that 86 per cent of potential buyers believe that it is a good time to buy a property, compared to 84 per cent in 2021, while 14 per disagree. The major reasons for this sentiment were rents becoming more expensive, buying becoming more affordable, and the security of owning a physical asset.  

Garg told businessline, “While the increase in global commodity prices is a big challenge, overall, the environment is good and positive, whether it is commercial real estate, or residential real estate. Companies as well as REITs are doing extremely well, so we are optimistic. Compared to the entire world, where the stock market has come down, India is at an all-time high. So clearly, a lot of optimism is there, and the developing markets will do much better than the developed markets.”

In addition to its database of 30 million users, NoBroker also conducted a survey, which included over 26,000 customers from across Bangalore, Mumbai, Pune, Chennai, Hyderabad, and Delhi-NCR.

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