Housing sales may touch pre-COVID level; rates may go up 5-10%: Report

Housing sales are likely to reach pre-COVID level in the next year while rates may appreciate by 5-10 per cent during 2022, according to property consultant Anarock.

"The Indian residential real estate market seems to have embarked on a long-term upcycle, and 2022 is very likely to fare better than 2021.

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With COVID-19 now having become a more accepted part of life and Indians getting used to the new normal, businesses are looking to expand. Compared to 2021, the residential real estate market in 2022 will see lower volatility," Anarock Chairman Anuj Puri said. In 2020, housing sales stood at 1.38 lakh units, down 60 per cent from the previous peak of 2014.

This large-scale decline indicated that the Indian residential market had bottomed out in 2020 and was likely to enter a long-term upcycle from 2021 onwards.

During January-September 2021, Anarock said that 1.45 lakh units were sold, which is 5 per cent higher than the entire last year.

"New supply and sales may reach 2019 levels by the next year i.E. 2022. Interest rates may start inching up from H2 of 2022. Prices may appreciate in the range of 5-10 per cent," Puri said.

The consultant said that the real estate sector would get organised further with share of the large players increasing.Mid-end and high-end housing segments will continue to drive a majority of the demand, he added.Anarock is one of the leading real estate consultants in the country.