Challenges for Real Estate in 2022.



                                    By Shravan Gupta.



Experts believe that 2022 is going to be the path-breaking year for real estate. Experts like Shravan Gupta are going to be the game-changer when it comes to new constructions. Real Estate has to overcome many challenges before any real growth becomes visible. Pandemic is the main reason for a change in real estate. However, India’s real estate is doing well despite the slowdown and challenges encountered last year.


The challenges which may encounter real estate in 2022 are:



  •  Funding issue- Many issues are being faced by the Real Estate sector and prominent among these is Funding. Shravan Gupta states that funding in this sector has gone down prominently. It has led to the stoppage of work amongst small and mid-scale builders. Non-payment of loans by small and mid-scale builders is a prominent reason for the fund crunch in the real estate sector. Banks have become apprehensive about dashing out loans hence funding issues can become a challenging factor in 2022. 


           It is important to address the issue at the earliest through measures like PM Awas yojana and attractive lending schemes.


  • Unsold assets- Pandemic has played a major role in flats remaining unsold. Many flats have remained largely unsold due to a cash crunch amongst the potential and first-time buyers. Another reason for this may be the unavailability of raw materials and labour crunch. Shravan Gupta feels that this situation will change in the coming months. The advent of cash flow and fund availability will lead to more flats being sold.


  • Low Expectations- The value of real estate as a market has gone down tremendously in the year 2022. This is largely due to uncertainty looming since mid-2021. Shravan Gupta says some of the major stakeholders are unwilling to invest money in mid-level builders. Experts say there is a dip of 60% in the sentiment of potential stakeholders.


The future scenario.


In 2022, the future of real estate is very bright and it is bound to witness a revival. Shravan Gupta feels such changes will become fully visible in the coming months. But for this to happen real estate experts must keep a watch on factors like low home rates, flagship schemes of the government and much more. And one should be ready to capitalize on such benefits at the earliest levels. 

Experts are of the view that Indian real estate will be the first to bounce back from the effects of a pandemic. Some believe it is already on the path to recovery and challenges will be overcome in a few months.




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