Housing prices may rise 5% during 2022: Report

NEW DELHI: Housing prices may rise 5 per cent next year on improved demand, according
to Knight Frank India.
In its ‘2022 Outlook Report’, the property consultant said: “While 2021 was mostly impacted by
the volatility due to the pandemic, 2022 may prove to be a more stable year for the sector both
for commercial as well as the residential sector.”
On the housing segment, the report said that sales momentum is expected to continue in 2022
as prospective homebuyers’ preferences for bigger homes, better amenities, and attractive
pricing will keep them interested to seal the deals.

“After facing a series of structural reforms like demonetisation, GST, and RERA during the last
decade, the pandemic arrived as another blow for the real estate sector. Our decadal analysis of
the 2011 to 2021 period indicates many of the supply and demand-side factors have started
putting upward pressure on house prices and as a result, we project around 5 per cent price
increase in 2022,” it added.
Shishir Baijal, chairman and managing director at Knight Frank India, said the real estate sector
recorded a smart recovery despite the pandemic exigencies in 2021 with segments like
residential outperforming others.
“The disruption caused by the pandemic is slowing settling and the real estate market is
expected to gain back its rhythm in the next two to three quarters, albeit, the threats of the new
variant is adequately contained with minimum disruption in the early part of the new year.
Should we be able to continue at this pace, the real estate sector will see an adequate recovery
to match or indeed cross the pre-pandemic levels,” he said.
Knight Frank said that the top five IT companies’ incremental demand for office space based on
robust hiring in the last eighteen months is estimated at 11.67 million square feet, spread out
over the next one to two years.
“Co-working sector will benefit as pandemic reinforces the need for agility like never before.
Agility, a keyword associated with the co-working sector, will drive the demand rebound for
flexible office spaces despite the return of normalcy. The recovery in the office sector and flightto-quality trend is expected to keep rents stable to increasing in 2022,” the report said.
Transactions for the warehousing segment, riding on the boom of the e-commerce sector, is
projected to grow at a CAGR (compound annual growth rate) of 20 per cent from 31.7 million
square feet in the financial year 2021 to 45.9 million square feet in the financial year 2023.
Indian data centre market currently houses an estimated 445 MW of critical IT capacity, and with
a significant approximate 290 MW addition in 2022, the total count will scale up to 735 MW by
end of next year.