Which City In India Is Best For Real Estate Investment In 2022 ?
This pandemic initiated a massive change in real estate investors’ behaviors and this is one of the biggest reasons enabling the real estate sector to stand against Covid-19. Now home buyers are looking for residential property which is spacious to accommodate their Work From Home & On-Line Classes needs, deploy best quality materials, and they also prefer to self-sustaining communities. Or we can say that now home buyers understand the importance of a better living experience and long-term connection with their dream home.
Real Estate investment experts and consultants are of the view real estate of India are well on its way to reaching the pre-defined goal of before covid-era and market sentiment is positive across both the residential & commercial. And we are very hopeful that 2022 will be the best year for the growth and technology transformations of this sector. According to different real estate portals in India, the search queries for units with 3+BHK grew by 15% month by month in 2021.
So, we are here to give you an idea of the current property market scenario and future prospects in India’s top four metropolitan centers today.
Delhi / NCR
As we know the first half of 2021 was disturbed by the 2nd wave of the pandemic. But thanks to the many growth drivers like affordable home loan rates, stable property prices, best payment plans by developers, and many other initiatives helped boost the property seekers’ sentiment in the second half of 2021. Delhi NCR’s real estate market approximately doubled its housing sales in 2021 compared to the same period of 2020.
New launches in this region have increased gradually to approx. 30000 units by the starting of the fourth quarter of 2021. And the same movement has been seen in housing sales. The new supply of affordable & mid-segment residential projects has captured the interest of the buyers in the NCR region. If we talk about micro-markets then Golf Course Extension Road, New Gurgaon, and Moti Nagar in Delhi remained the most preferred locations among buyers and investors.
The growth drive is expected to stay longer and the real estate of NCR is set to reach new heights in this & upcoming years. With a steady and robust development, the Delhi NCR real estate has become the number one choice of home-seekers & investors these days. Supported by robust monetary restoration and new trends, it will unquestionably be speeding up and the best results will be observed that will make 2022 the best year for the real estate sector here.
Mumbai Metropolitan Region (MMR)
Mumbai Metropolitan Region (MMR) logged the maximum sales with more than 76,000 units. For the MMR region, 2021 started with positive vibes. With a drop in stamp duty from 5% to 2% in Oct-Dec 2020 and 3% in Jan-Mar 2021, the housing sales sharped rise, bringing huge relief to tensed developers.
Despite the good regaining of the sector, it is very important to note a big shift in home buyers’ behaviors, particularly with regards to the 2 factors highlighted below:
Preference towards big realty brands:
Now home buyers & investors in the MMR region only trust reputed real estate developers than ever. These names have a good track record of construction quality and timely delivery.
Preference towards ready-to-move-in homes:
Home seekers in MMR these days are looking for a ready-to-move property as this kind of property gives them a sense of security and transparency. As well, the savings made in GST counterbalance some of the pricing gaps between a ready-to-move and under-construction property.
Highlights of 2021
- Mumbai Metropolitan region sees maximum annual sales
- Maximum unsold inventory drops in MMR at 10%
What boosted sales?
- The rise in ownership aspiration
- Developer discounts and offers
- Government incentives
- Low-Interest rates
Real estate developers are also very hopeful that 2022 will script development, new trends, and milestones in the real estate sector.
Property registration rate in Greater Kolkata of 2021 stood at approx. 45,000 units, recording a jump of 64% in comparison of 2020, with 56% of these registrations were recorded since the arrival of the cut in stamp duty July 2021.
Yes, it is true that November 2021 faced a brief lull as people are busy in festivals, but statics of December has shown a significant recovery in home registrations. December month of the last year has recorded a 248% month-on-month (MoM) growth in residential sales deeds registrations. At the same time, there is still a 10% Year-on-Year deterioration compared to 2020, but there has been considerable progress on the MoM basis.
If we talk about unit sizes, units up to 500 sq. ft. have observed 62% Year-on-Year degrowth in December 2021 and unit sizes of 501 sq. ft. to 1,000 sq. ft. and above registered 67% and 73% YoY growth, correspondingly.
Real estate development in Kolkata has been observing negative growth for the last few years but 2021 was the best year on the MoM basis. Therefore, these recorded property registrations and housing sales come as an optimistic respite for the real estate in Kolkata.
The real estate market of Chennai is one of the few markets in India who not only remained strong against Covid19 but also recorded a speedy recovery. At this time, mid and premium residential projects observe huge demand and supply.
With the addition of approx. 13000 units in 2021, new developments in Chennai have recorded a huge rise of 77%. Year on Year. In H2 2021, the market share of projects with units price greater than 10 million increased to 23% of the overall sales from 18% in H2 2020.
In the same way, Chennai real estate witnessed a slow deterioration in the share of sales of unit prices greater than 5 million from 54% in the first half of 2018 to 33% in the second half of 2021. So, you can predict excellent real estate growth in Chennai.
Every big city in India has some pros and cons. However, residential properties in the big metro are a great suggestion for individuals looking for capital appreciation through real estate investment. But you have to check the location and builder reputations to grab a sure-shot deal.