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22 February, 2022
The Indian property market seems to be headed in a good direction, with improving real estate sentiments. In the last quarter of 2021, the sentiment score was at 65, an all-time high. A majority of stakeholders in the industry are optimistic about the future, thanks to the positive trends. Previously, the highest real estate sentiment index score recorded was 63, back in the third quarter of 2021. Two record-high scores consecutively can only indicate a consistent growth in the sentiments, which is likely to remain high.
One of the key factors behind the high sentiments is the high demand for properties, across the residential and commercial sectors alike. Cities like Gurgaon, Noida, Kolkata, Bangalore, etc. have been witnessing a consistent increase in property sales. A number of factors have contributed to this, including lower loan rates and growing infrastructure. Moreover, an increasing number of Indians now prefer to buy homes than residing in rental accommodations. This has helped assure stakeholders that investing in real estate would continue to be profitable.
The Indian real estate market had taken a major blow at the onset of the COVID-19 pandemic. Property sales almost trickled to a halt for many developers, while lockdowns made it hard to finish ongoing projects. However, the industry bounced back in a few months, with a record-high growth in property sales. Over the last five quarters, the sector has grown consistently, with the real estate segment driving a major portion of property sales.
Besides the excellent growth that the residential real estate market has shown, the commercial segment has also performed well. With businesses resuming their operations after the lockdowns, demand for office and retail spaces has gone up. This has resulted in increased investments in commercial real estate too, with buyers staying assured of profitable returns.
The real estate market in India certainly looks good at the moment. The current trends do indicate a bright future for the industry in the coming months.