Property costs likely to increase by 5-10% in 2022: Anarock

Property costs are likely to increase by 5-10% in 2022, while property sales are likely to touch pre-Covid levels shortly, said property consultant Anarock. Last year, housing sales reached 1.38 lakh units, decreased by 60% from the last peak of 2014. This large-scale drop showed that the Indian residential market had bottomed out last year and was likely to enter a long-term upcycle from 2021 onwards. During January-September 2021, 1.45 lakh houses were sold, which is 5% more than last year, said Anarock. New supply and sales may touch 2019 levels by 2022. Interest rates may commence surging from H2 of 2022. Costs may increase in the range of 5-10%, Anarock Chairman Anuj Puri told the media. With work from home and online schooling becoming the new normal, there was a high demand for bigger homes, and as a result, mid-segment (houses valued between Rs 40 - 80 lakh) and high-end (houses valued between Rs 80 lakh – Rs 1.5 crore) did extremely well. Overall, nearly 65% of the supply between January to September 2021 came in these segments. According to Anarock's latest consumer sentiment survey, there was an increase in the preference for houses valued at more than Rs 90 Lakh. During the first wave, 27% of the respondents chose housing units priced more than Rs 90 Lakh, which rose to 38% during the second wave. Data from property consulting firm Liases Foras reveals a 105% increase in property sales valued in the Rs 50-lakh to Rs 1 crore bracket in the first half of the financial year 2022 as against the year-ago period. Image Source Also read: Maharashtra property registration revenue at Rs 7,507 cr in Q2