Will Omicron Impact on the Residential Real Estate Market in 2022?

Kishan Thakkar K

Overview

The Indian real estate market has seen many ups and downs in the last couple of decades, especially after 2020, with the havoc of the first and second waves of Covid 19. Citizens have been adopting the covid norms, following guidelines from the government, and with the government policies, the Indian developers foresee the growing demands in the properties in 2022. 

With the rise of adoption of the digital era in the real estate sector, both from the buyers and developers, the third wave of the Covid 19, led by the Omicron, has seemed to have less impact on the demand and the property prices. Although it is expected that the property prices will rise due to the price hike in the raw materials. The developers are unable to absorb the further prices rise of the raw materials.

Impact of Omicron on housing sales

The third wave of Covid 19 is hovering over the whole world to cast a shadow over the real estate sales, including the residential and commercial property sales. 

Mumbai, one of the biggest property markets, has witnessed the 1.1 lakh property registration in 2021, surpassing the numbers of the record set in 2018. In India’s financial capital, this was the first time that registrations had topped 1 lakh in a single year. This milestone occurred even as the stamp duty benefit was reversed in April. 

The data from Anarock Property Consultants painted a clear picture of the sector’s recovery. Strong consumer sentiment is evident from the 71% to 236,530 units, increase in 2021 in housing sales across the top seven cities.

In the last two months of the last year, 2021 has contributed nearly 39% to the overall sales of 2021. But now as the Omicron cases is rising, and several states have imposed several restrictions. How will it affect the strong sales momentum that has been maintained from the last year?

CRISIL expects residential real estate to see a moderate growth rate during FY23 due to a high base and rising interest rates, in the top 6 cities, Bengaluru, Pune, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR) and National Capital Region (NCR).

As a result of favourable affordability and moderate capital values, CRISIL expects 30-35% growth in sales this fiscal, surpassing pre-Covid levels.

Developers are better prepared this time!

Conclusion

There are many new launches in many big cities like Mumbai, Pune and Hyderabad, which are lined up for 2022. Many small players have formed joint ventures to take the benefit of the new wave. Therefore, any disruption caused by Omicron is unlikely to disrupt the ongoing trends of the demand. The developers will witness relatively higher sales in 2022, as our reports are already predicting.

Staying informed and discussing with experienced & experts while making a decision is an ideal way of making a great deal. All you have to do is contact RoodLand, which provides the best real estate services. For any queries and suggestions, contact us at info@roodland.com and discuss all of your options with us!

RoodLand is a business solution and advisory organization for the Real Estate sector. It is founded by young professionals with experience in management, marketing, finance, and digital technologies. With their innovative marketing concepts and out-of-the-box methods, RoodLand has successfully delivered amazing results across the region. 

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Thank you for reading! 🙂

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