Housing prices to move up 5% in 2022: Report
While 2021 was mostly impacted by pandemic-induced volatility, 2022 may prove to be a more stable year for the sector
Chennai: Assuming supply and demand-side equations being favourable, residential property prices are likely to see a 5 per cent rise in 2022, says a report.
After facing a series of structural reforms like demonetisation, GST and Rera during the last decade, the pandemic arrived as another blow for the real estate sector. The decadal analysis of the 2011 to 2021 period indicates many of the supply and demand-side factors have started putting upward pressure on house prices and as a result around 5 per cent price increase is likely in 2022, according to property consultants Knight Frank India.
While 2021 was mostly impacted by pandemic-induced volatility, 2022 may prove to be a more stable year for the sector— both for commercial and residential sectors, said the ‘2022 Outlook Report’.
Further demand revival is expected in the residential sector, with strong end-user interest aided by government impetus and incentives by developers ensuring buoyancy. Homebuyers’ preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals.
According to an IMF report, India had bucked the global trend of rising home prices in 2020. While globally house prices moved up in 2020, India was among the very few countries which saw prices declining. India had seen more than 3 per cent dip in prices in 2020.