Since January, the rental housing market in major cities has started to recover. Indeed, companies are starting to use hybrid work formulas and schools are opening in major cities.
“The residential rental market, however, has shown a steady increase in demand over the past two quarters, with working from home returning to normal. The real estate sector has seen a surge in sales and is now showing signs amazing recovery in the rental segment as well,” said Samir Arora, President of the National Association of Realtors India.
Residential property rentals in major cities such as Bengaluru, Chennai, Delhi-NCR and Mumbai dropped by 10-20% immediately after the pandemic began.
However, as employees return to their positions, the situation begins to change.
“UHNIs are actively looking to buy a new home in 2022 due to an increase in their wealth. We are seeing an increase in inquiries and seeing an increase in transactions for good luxury properties,” said Bhavesh Kothari, founder of Property First, a luxury real estate consultancy firm.
The residential rental market began to pick up speed in the first quarter of 2022, thanks to a decline in new COVID-19 infections and aggressive vaccination across the country.
This will be supported by most companies’ plans to open offices from January and expand them by June.
About half of the workforce is expected to return to the workplace for up to three days a week by the middle of this year, according to the IT/IT business property manager, with employees and employers alike interested in returning to the workplace in a hybrid setting.
“The industry has been hit hard by the pandemic, but there is a huge opportunity for organized players. Our new bookings are at pre-pandemic levels, averaging around 60% occupancy” , said Nikhil Sikri, CEO of the company. company (company name pls).
The residential market is driven by the salaried population, and a large percentage of tenants in cities like Bengaluru, Hyderabad, Pune and Mumbai belong to sectors such as banking, financial services, insurance, software and pharmaceuticals.
“The number of people considering investing in residential properties has increased, rents are rising, and the market is seeing some stability returning for now. Searches for rental properties across the country have increased nationwide per compared to the previous year,” said Ramita Arora. , MD (Bengaluru) Cushman and Wakefield.
The pandemic outbreak nearly paralyzed the real estate rental market for a few months last year and earlier this year.
The residential market has seen a strong pick up in sales momentum and the trend has continued even in Q4FY22 with a fair amount of pent up demand generated over the last 2 years which is now unblocking.
The first quarter of the new year (January-March 2022) saw quarterly sales hit a four-year high of 78,627 residential units despite the third wave, with all major markets seeing an increase in the average capital value of residential properties as demand continued to strengthen, Knight Frank said.