2022 may be record year for residential real estate: report

Despite a rise in construction costs and the monetary tightening measures by the Reserve Bank of India (RBI), both sales and new launches in residential real estate have remained firmly on a growth trajectory, according to a CBRE-CII joint report. According to the report, unprecedented sales and launch momentum has been witnessed in the first half (H1) of 2022. Property prices have increased across most micro-markets and across segments due to record sales and developers’ decision to pass on rising construction costs to buyers. In view of this situation, 2022 is expected to be a strong year for the residential sector, with both sales and new launches likely to reach a decadal peak and cross the 200,000-unit mark. While the continued inflation and rising cost of financing may impact stakeholder sentiments in the near term, the overall health of the sector is likely to remain strong owing to positive homebuyer sentiments. As per the report, the reasons for the continued strength could be the sustained government support for housing, especially to the affordable and mid-end categories, which have been key drivers of sales and launch activity in the sector. Moreover, the continued need for home ownership is not only strengthening the market share of Tier I developers, but also encouraging new players to enter this space. See also: DDA's online housing scheme to offer 8,500 flats in NarelaAllotment of MIG plots in Visakhapatnam done by lottery