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New Residential Property 2022 Biggest Trends & a Wrap Up

By Rishabh Chamoli | 2022-12-18

In India, where real estate employs the most people after agriculture, there have been some dramatic developments in the last few years. Real estate in India has gone a long way from virtual reality to chatbots functioning as customer service representatives.
An investment in real estate is a crucial pillar of the Indian economy, and a countrys success is frequently measured by its infrastructure development.

The acceleration of urbanisation, as well as a large number of people relocating to cities, has boosted residential real estate in India. Real estate in India is now undergoing a revolution and is expected to grow more active as property investment increases.
The residential property industry has been scrutinised by both real estate developers and real estate investors as a result of urbanisation. Despite the fact that the real estate sector is experiencing a liquidity shortage and other issues as a result of the NBFC crisis.

Even though the outlook remains grim, there are several indicators that appear to be attracting the attention of the residential real estate market. Policy improvements in recent years have resulted in world class standards entering the Indian real estate market.

Let us check out a few Real Estate Trends and learn more.

Key Real Estate Trends
1. Digital House Hunting
The epidemic accelerated digitalization in all industries.
The real estate market is no different.
Because of the epidemic and the competitive property market in 2020, several customers bought their homes without ever setting foot inside.
Because of virtual capabilities, many people were able to virtually visit properties. This was possible with the help of amenities such as Drone videos with 3D tours & Staging virtually.

2. Technology at its Best
The Indian market generally adopts new technology very slowly, but the real estate industry is doing so in both design and development. Automation and virtual reality are slowly making their way into the home market. The documentation, along with a lot of other complicated paperwork, has already been automated. The purchasing habits of millennials have altered as a result of advanced technologies.

3. City to Suburb Migration
The change is being made for two main causes choice and necessity.
People who cant afford to stay are forced to relocate. While wealthier people are voluntarily moving. People move in quest of more inexpensive housing alternatives when they lose their employment and can no longer afford major city expenses.
Last but not least, the suburbs are desirable locations because of their reduced taxes, affordable housing, and inexpensive rent.

4. Affordable Housing
The affordable housing programme is being promoted by the Indian government, and it is benefiting residential real estate. The Pradhan Mantri Awas Yojana (Urban) Credit Link Subsidy Scheme (CLSS) on home loans for the Middle Income Group (MIG) was recently announced by the government. Under this programme, a homebuyer may receive a subsidy on their mortgage of up to 2.67 lakh rupees.

New Business Models in the Real Estate Industry

The Indian real estate industry is currently thinking about new business models with broad implications. Significant provisions introduced by RERA include limitations on construction without the required permits and land, disclosures by real estate companies and developers, separate escrow accounts for customer payments, a fast track system for grievance redressal, harsh penalties for developers who break the rules, and more. This would guarantee prompt delivery and give protection to buyers against fraud committed by real estate operators.

As a result, the real estate industry has grown more structured and controlled. RERA has also caused the industrys past business models to change. The business is now mostly driven by the end user or consumer. Both the entry of illicit money into the industry and the inflation of real estate prices have been restrained. Another business strategy that is no longer recommended is pre sales since it caused inflated prices in recent years, which made house ownership wildly unaffordable.

Additionally, due to the previous model being focused more on investors, real estate developers were focusing more on the premium and luxury housing categories that had higher margins of profit despite there being sizable demand in the affordable or low cost housing category.

However, real estate developers and companies are now more consumer driven and with the Government offering incentives for affordable housing under PMAY for buyers and tax incentives to developers, the industry is now concentrating more on the affordable and mid range categories. New financing models are coming up including foreign equity funds and funding from corporate NBFCs that are tying up with real estate developers.