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Real estate may see 5% price hike in 2022: Knight Frank India
18 Dec 2021 CW Team
According to a report by Knight Frank India, housing prices might increase by 5% in 2022. Its 2022 Outlook Report said that 2021 was impacted due to the Covid-19 pandemic.
The year 2022 will be a stable year for the commercial and residential sectors, according to the company. The report said that the sales momentum expects to continue in the next year, as home buyers prefer bigger homes, better amenities and attractive pricing to keep them interested in real estate deals. After structural reforms during the last decade, including demonetisation, Goods and Services Tax (GST), and Real Estate Regulatory Authority (RERA), the Covid-19 pandemic was another hit to the real estate sector. The report's decadal analysis shows that the supply and demand-side factors have started putting upward pressure on housing prices, resulting in a 5% growth in 2022. Shishir Baijal, Chairman and Managing Director of Knight Frank, said that the real estate sector had witnessed a smart recovery despite the Covid-19 pandemic, with residential outperforming others. He said that the Covid-19 challenges are settling, and the real estate sector is expected to gain momentum in the next two to three quarters. It will witness an adequate recovery to match the pre-pandemic levels. Knight Frank India told the media that the five best IT companies' demand for office space due to robust hiring since the last 18 months is expected at 11.67 million sq ft in the next one to two years. According to the report, the co-working sector will benefit as the Covid-19 pandemic reinforces. Agility will drive demand for flexible office spaces. The office sector and flight-to-quality are expected to keep rents stable to increase in 2022. Transactions in the warehousing sector might grow at a compound annual growth rate (CAGR) of 20% to 45.9 million sq ft in FY23, from its previous 31.7 million sq ft. The data center in India estimates 445 MW of critical IT capacity, with around 290 MW additional capacity in 2022. Its total count will increase to 735 MW by the end of 2022. Image SourceAlso read: India secures 54th rank in Knight Frank’s housing price index
