HSG sector to build on this year’s growth in 2022
In the market of residential properties in the upcoming year, we will observe sustained recovery in the stable property prices. It is due to the need for housing in the pandemic and reduced mortgage rates.
The housing market of India has shown positive signs of recovery. It is also expected to follow the uptrend in upcoming days to stop the average sales volume of housing inventories is expected to reach the average sales for a quarterly period in 2019. It is because of the strong demand from the end-user side and conducive market conditions.
Key property markets in Hyderabad, Pune, Ahmedabad, Mumbai, Bangalore have already achieved the above levels.
2021 has been one of the Good Years for the housing and real estate sector that showed recovery after the pandemic with innovations, resilience, and performance. Many people want the sales Momentum and demand to continue its performance in 2022 as well. Hybrid working and low-interest rates will support in pushing the demand because more people know the importance of their own homes. stated Harshvardhan Patodia.
In the recent 15 months, it is observed that reduced interest rates on home loans, renewed buyer confidence, and incentives offered by real estate developers have been instrumental in helping the market recovery of the housing sector.
The unfolding of the challenges arising because of the omicron variant can be a major factor affecting the momentum of sales if there is any lockdown implemented.
Experts believe that the use of the Internet and digital marketing will overcome the challenges of reduction in sales.
The lesson learned from the previous sudden lockdown will help to be ready to face any challenge.
The housing sector will show strong Momentum in both supply and demand if we meet the challenges successfully. An important point to note is that during the period of the pandemic, people felt the requirement for large-sized homes, and this demand will continue, said Shishir Baijal.
Most big lenders offer a 6.5 to 7 % mortgage rate range for 20 years as housing loans; these are the historical lowest rates since 2005. An increase in mortgage rates up to 8% is still affordable to buyers in the upcoming days.
In selected residential micro-markets, we can observe price hikes up 5 to 7 percent, because of the Limited inventory in select segments, the high demand Momentum, and increased input cost.