Homes Could Get Costlier In 2022

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If you were to decode the signs of a healthy housing market, a steady, yet affordable increase in price tags would signal good health. Such a sign seems to be on the horizon. 

How's The Market Now?

After facing multiple structural reforms like demonetisation, GST, and RERA through the last 6 years, things weren't exactly in the pink for the sector. 

Per a new report by Knight Frank, the brake check by the pandemic is gradually easing and the residential market is expected to gain back its rhythm in the next two to three quarters. 

Sentiment And Demand Are Up

A last 10-year analysis of the 2011 to 2021 period indicates many of the supply and demand-side factors have started applying upward pressure on housing prices and as a result, the report projects a price increase of around 5% in 2022. 

But...But...But

Every developer worth his cement is crying fowl as costs of raw materials like steel, cement, fittings, tiles, etc. have skyrocketed by up to 50% in some cases. 

This has led to silent housing price increases hovering between 5% to 15% in many micro markets across the country, say numerous news articles from the recent past.  

Heck, what's another 5%? Anything for good health.