The Covid-19 pandemic that shook India's booming real estate market in 2002 met with remarkable tenacity. Despite some early difficulties, the industry quickly adjusted to the new normal using digital means and was soon back on track. Huge sales were recorded in Q3 and Q4 2020, which lasted until April 2021, demonstrating optimistic growth just before the second wave hit the nation.
The second wave of Covid-19 spread has undoubtedly disturbed the steady upward growth trajectory and partial lockdowns and movement limitations have certainly had an impact. The real estate sector, on the other hand, is well-prepared this time with tried-and-true strategies, so the stoppage impact will only be temporary.
In 2021, trends had predicted that 80 percent of prospective buyers want to buy a house within the 2022, with 65 percent preferring ready-to-move-in residences. Low loan rates, favourable government regulations, flexible payment plans, easy investment options, and the application of technology have all contributed to this expansion.
In these ever-changing settings, new trends emerge on a regular basis. The requirement for more space to work from home, better quality of space will continue to drive larger homes. People will look forward to buying properties in their localities, resulting in a surge in demand in Quarter:3 and Quarter:4 of 2022, backed by the vision altering strategies proposed in the 2022 budget for Real Estate Development.
NRIs, UHNIs, expats, and business leaders will continue to drive the ultra-luxe market which will be dominated by high-rise residences, gated townships, and luxury buildings with well-managed infrastructure. Interest rates are at historic lows, and the Reserve Bank of India's rate cuts have stimulated demand. As a result of this tendency, customers have been able to move forward with their purchases. The real estate industry has traditionally been a buyer's market and a favorite among investors. The sector has attracted investors due to promised greater and more reliable returns, and this trend is expected to continue beyond 2022.
For a digital future, these patterns are expected to evolve and persist in the days ahead. Trusted developers with solid financial support and a track record will obtain a larger portion of the market. People will seek out developers who can meet their needs by using technology to connect rising trends with their tastes. Customer-centricity will become the norm, leading to increased customer happiness in the long run.
However, Budget 2022 remains dedicated, to increasing openness in the real estate market and boosting the ease of doing business. It reiterates the government's commitment to affordable housing. Infrastructure investing on urban transportation, motorways, and multimodal logistics can help modernize and stimulate logistics investment. Incentives for homeowners, particularly those in the lower and middle income categories, were notably absent from the budget.
The government's focus on affordable housing was highlighted in Budget 2022 by higher funding to the flagship Pradhan Mantri Awas Yojana (PMAY) as updated estimates for FY2022 and budget projections for FY2023 compared to the initial budget estimate for FY2022.
The budget’s goal of creating 6 million jobs in the next five years will raise demand for office space. The Union Budget for 2022 is a forward-looking document. Not only is the government's goal of creating 6 million jobs over the next five years good news for employment, but it is also good news for the commercial real estate sector. In the coming years, it will be a focal point for the expansion of office space demand.
Urban planning has also gained central importance in the Budget 2022. A high-level group of urban planners and institutes will help to shape policies for urban development, giving the real estate sector a boost. We appreciate the government's balanced approach to Tier 1 and Tier 2 cities; mass transit networks will help to bridge the gap between megacities and smaller towns. The goal of providing affordable homes for the middle class and economically disadvantaged is admirable, and the allocation of Rs 48,000 crore demonstrates the government's dedication to the cause. Single-window environmental approvals and better coordination of approval processes between the Center and the states are both positive steps toward achieving this goal.
Furthermore, the proptech roadmap for the coming year is a two-way street resulting from the convergence of key technology and real estate businesses. Amid the Coronavirus pandemic, the Union Budget 2022-23 is likely to deliver a combination of growth and fiscal considerations. The demand for skill upgradation to match technological revolutions is increasing the pace of self-reliance in India, therefore the government should rely on policies and measures that not only uplift the sector but also establish a financial structure that propels the proptech industry's long-term growth.
The budget has been optimistic and has made efforts to improve the economy backed by the predicted real estate industry. The focus on achieving a paradigm shift towards a standard corporate style will have a significant impact on the industry environment. The industry will surely rebound with the overwhelming support given for affordable housing.
