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Real Estate Investment Trends 2022

With the economy opening up after the long haul of the pandemic, inflation is now impacting the markets due to labor and recruitment difficulties, and interruption in the supply chain systems affecting money sourcing. Most home buyers looking for a secondary income have realized that investment in property would help in adding to their income.

With the escalating property prices and the high cost of building materials and labor, the rising rents have benefitted landlords to recover these expenses in real time. Based on location, property values will continue to rise with higher net operating income. This rise in real estate rental/resale value makes it an attractive investment for many looking for long-term investment opportunities.

Mumbai, India’s financial capital, commands the highest land prices. The island city has been opened up for redevelopment of homes and commercial spaces.

– Redevelopment by demolishing old tenanted homes and constructing skyscrapers
– Redevelopment of slums into residential cum commercial complex
– Redevelopment of homes and commercial complexes owing to infrastructure development in the vicinity, like upcoming metros and new roads.

These plans could make 2022 a lucrative year for investors to look at the choice of investment in projects.

With the availability of home loans at low-interest rates, the demand surge for seeking homes has become even more intense.

Single-family & Multi-family rentals remain stable.
With the market prices skyrocketing, the young families migrating back to the cities, especially in the single-income family rental sector, prefer renting rather than buying a home in the city. There is also an emerging trend of large business families shifting to the cities for better education and opportunities. These families prefer to rent homes close to their business districts or in properties that cater to community living and amenities for the young and old.

Many upcoming residential projects, especially those in Worli, Dadar, Prabhadevi, and Lower Parel, have floor plans and amenities catering to large conjoined families. Some projects like Vraj Tiara at Worli offer homes of 3 & 4 BHK that cater to these audiences. Location, infrastructure, and thriving neighborhoods also play an essential role for these audiences.

Observing these trends, the investors are now looking at luxury projects that can cater to these requirements to ensure there is a better passive income. This was further proved by statistics of 18% of single-family homes sold in Q3 2021 were sold to investors.

The forecast has been that the rental growth will be at an average of 10% in 2022 from 7.8% in 2021.

In conclusion

2022 is shaping up to be an excellent year for the knowledgeable investor who understands the trends accelerated by the pandemic and knows how to choose wisely. Unsettled and volatile markets always present some of the highest risks to those unaccustomed to new trends. Those aware of the growing trends will take the necessary steps to reap from the same.

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