Both luxury and affordable housing to dominate residential realty in first half: Realtors

3/4/2022 1:43:00 PM

In spite of the Covid-19, 2021 was a fantastic year for the Indian housing sector. Housing sales that were initially impacted by the second wave of the pandemic began to pick up the pace after June 2021. According to data from consultancy firm ANAROCK, housing sales in the top seven cities increased by 71 percent year over year in 2021. The highest number of units sold was 76,400 in the Mumbai Metropolitan Region, followed by around 40,050 in the National Capital Region. Of all the launches, the mid-segment (Rs 40 lakh to Rs 80 lakh) had the maximum share with 39%, followed by the affordable segment (priced under Rs 40 lakh) with a 26% share. The premium segment (priced between Rs 80 lakh and Rs 1.5 cr) had a 25% share. “Despite the threat of a third pandemic wave, the sector has proven its ability to overcome significant obstacles. The year 2021 was set aside for a speedy comeback, and the months ahead appear optimistic. End-users are taking over the traditionally investor-driven real estate market. In the residential sector, the transition from investor to end-user began a few years ago, and with COVID, the scale has tipped even more towards end-users. Right now, luxury and affordability remain the biggest attractions in the residential real estate segment,” says Dhiraj Jain, Director, Mahagun Group. According to Sotheby’s Luxury Housing Outlook-2022, as many as 67 percent of high-net-worth individuals want to acquire luxury properties in 2022, with a lifestyle change being the primary motivation. Well-heeled buyers are looking for a different kind of retreat from everyday life that dominates the luxury market. As a result, NCR offers projects similar to resorts or farms. The Haryana government is also working to ensure that high-quality housing gets developed. In the state’s agricultural zones, the Haryana government has established a new policy of change of land use (CLU) to avoid unplanned farmhouse construction and encourage eco-friendly living units. Raheja Developers, a renowned real estate company, has applied for the CLU to build Haryana’s first CLU- approved farmhouse. The developer has Riyasat Hills Farmlands, which spans 100 acres, and is located near Sector 95B, one of Gurugram’s highest capital appreciation zones. “Everyone is baffled by the deadly Coronavirus. Homes that help relieve stress are in high demand. People are becoming more aware of the importance of leading a healthy lifestyle, reclaiming their lives, and reconnecting with their inner selves. People have been coming closer to farmhouses over the past year and a half, and things have changed dramatically. As a responsible developer, we are mindful of our customer demands and will offer products that satisfy them,” said Nayan Raheja of Raheja Developers, describing the advances in the sector as optimistic. Another developer influencing people’s perception of homes is Central Park. Central Park Flower Valley, on the main Gurugram-Sohna road in Sohna Sector 32-33, is claimed to be a project that allows people to live life to the fullest in safe surroundings. Commenting on the trend, Amarjit Bakshi, chairman and managing director of Central Park, said, “In the current environment, the luxury category has benefited the most, particularly in Gurugram, where demand has outpaced supply. With the New Year upon us, we are enthusiastic about sales, which will most likely include an increased number of luxury residences. The confidence about luxury housing is based on the fact that the ratio of luxury sales to overall real estate sales has risen.” Projects that promote a healthy lifestyle and bring people closer to nature are highly in demand in Gurugram. According to Navdeep Sardana, chairman and managing director of Whiteland Corporation, Gurugram has dominated the NCR real estate market, and Gurugram’s proportion of overall Delhi NCR sales is anticipated to grow. “The city’s luxury market (above Rs 1 crore) stands out, with demand outstripping supply. In recent years, the ratio of luxury sales, in total real estate transactions, has increased. The residential market has sparked the interest of HNIs and inhabitants from South Delhi, who have noticed that world-class luxury projects are worth investing in,” he said. The perspective evolved substantially when developers in the NCR developed properties that impacted the NCR’s luxury real estate market. Gulshan has a one-of-a-kind wellness project in Noida, called Gulshan Dynasty. Yoga pyramids, hydroponic farming for organic produce, meditation field, specialized sunbathing space, more than 450 kinds of medicinal plants, rooftop theatre, and separate access and exit points for residents and other support employees are among the project’s cutting-edge features. “We envisioned a project with amenities that exude class while caring for people’s health, and we wanted to build a product that would change the way people live. As the target population is well-traveled, a project that can support their lifestyle, rather than a nice-looking structure, is in strong demand. Call it luck or foresight, but the project is ideally suited to the unexpected shift in demand caused by the pandemic,” said Yukti Nagpal, Director, Gulshan. According to realtors, the affordable category would also do well in 2022 since the government is set to extend incentives for buying affordable homes priced up to Rs 45 lakh by a year. The demand for affordable housing has risen as a result of historically-low home loan interest rates and infrastructural development in newer locations, which are typically at the heart of affordable housing. “The tax advantage will spur even more expansion. The need for affordable housing will continue to be robust in 2022. Furthermore, the one-year extension of the tax credit for affordable housing projects will help in the expansion of new supplies. It also highlights the government’s long-term commitment to providing affordable housing and efforts to achieve ‘Housing for All.’ The need for affordable housing in the Delhi-NCR region is concentrated in Gurugram, which accounts for more than a third of the total demand. Several projects are being launched in the region, and buyers are responding positively. In larger cities, anything less than Rs 45 lakh is unviable. Hence the government should pay attention to affordable housing minimum prices. The demand from larger cities is high due to the concentration of working- class people here,” said Vikas Garg, DMD, MRG World. Source: Financial Express