NEW DELHI: Property consultant Knight Frank on Thursday said that housing prices in India will rise by 5% in 2022.
"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 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% price increase in 2022," said Knight Frank in its 2022 Outlook Report.
This assumption from the property consultant comes at a time when many developers fear that increase in prices of raw materials such as cement and steel may lead to a price hike of 10-15% in near future.
Realtors' apex body Credai had recently expressed concern that if the prices of raw materials do not start decreasing in the immediate future, there is a high probability that the prices of residential properties will go up by 10-15% to offset the increased cost of construction.
Knight Frank in its report also said that residential 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.
"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," Shishir Baijal, Chairman and Managing Director at Knight Frank India said.