CYRUS MODY* anticipates 2022 to witness increased demand for quality, flexible, functional, and sustainable homes
Moving into the homestretch of 2021, home sales and new launches have both shown significant improvement indicating a turnaround in the real estate sector which has finally been able to make progress after undergoing dramatic structural changes followed by severe lockdowns during the two outbreaks.
The Stamp duty benefit announced by the Govt of Maharashtra encouraged fence sitters to invest in residential real estate resulting in historic sales numbers. Since Q2, the residential real estate market witnessed a M-o-M rise in sales and property registrations. The pandemic brought historically low-interest rates to the doorstep of the consumer, resulting in one of the cheapest environments in which to access home loans. Buyers across the country took advantage of a once in a lifetime opportunity. 2021 was the year of up-gradation for the new-age home buyer.
Consumers began to demand larger living spaces, which was at odds with the housing stock currently being developed in Mumbai wherein developers were largely focussed on smaller ticket sizes and affordability. Larger and more luxurious homes witnessed a surge in demand. Buyers were keen to upgrade to larger spaces with more room and amenities for their everyday needs. As a result, developers started focussing on areas with superior connectivity with open and green spaces in and around the project.
Viceroy Properties experienced strong sales in 2021 for our flagship luxury project Viceroy SAVĀNA located in Kandivali East, with prices moving northwards by more than 25% during the second wave of the Coronavirus pandemic. We believe this was largely attributable to spacious planning, addition of balconies and decks and compounded by the lack of quality housing stock in Kandivali East.
Overall, 2021 has gained large-scale momentum on the residential front which we believe will continue for years to come. With the changing market dynamics and hybrid work from home models, we anticipate 2022 to witness increased demand for quality, flexible, functional, and sustainable homes.
Customers have become exceedingly discerning and intelligent, and going forward, successful developers will have to focus on creating a feeling of genuine luxury, by providing fewer, and more well thought through features and amenities rather than attempting to tick multiple boxes and compromising the sanctity of the overall development.
Lastly, lowering the tax burden on home buyers and providing further concessions to the industry will continue to boost the demand for residential real estate, which will have a knock on effect on other industries, whilst also helping developers overcome the impact of rising commodity prices. (*The author is Managing Partner, Viceroy Properties LLP )