When the global financial crisis began, India's real estate market stayed relatively healthy thanks to low mortgage rates and stable property prices. The same cannot be said of equity investment. Rising mortgage rates will decrease demand. India is seeing robust growth in the real estate industry. This momentum is likely to continue into 2022. In 2021, commercial and residential real estate sectors all flourished in the market, despite the threat of a pandemic. At first, Covid-19 temporarily disrupted the Indian textile industry. However, by the end of 2020, the industry began to improve.
Real estate has seen a good run as a result of these. We're seeing a favorable trend begin in 2021, and expect it to continue until the end of the year. There was a 65 percent jump in residential sales by 2021, largely as a result of favorable macro-economic trends including a low interest rate and flexible pricing on homes.
By 2022, the residential real estate market in India is anticipated to increase in capital value by roughly 5%. According to some forecasts, homebuyers will continue to seek larger homes, better amenities, and more competitive pricing. During this period of job growth, the commercial sector's recovery, combined with the flight-to-quality trend, is expected to keep rents stable in 2022, with a rise. Additionally, the luxury home market is expected to reach new heights in the year to come.
There will be an increase in the price of steel, cement, and iron that will contribute to the rise in the cost of home ownership. However, according to experts, now is a good time for first-time homeowners to buy before prices rise further. A few people that I've talked to say that housing prices will rise in the future, and that this has already been accounted for in some of the housing project's price.
The Indian government has launched several initiatives in an effort to encourage people to purchase real estate. The measures proposed in the Budget Speech 2022-2023 will contribute to the growth of the Indian real estate market.
Affordable housing will be a high priority for the Indian government. The first week of December, the Indian government extended the date for providing dwellings to all rural families till 2024. To achieve the scheme's goal of building 2.95 crore houses, the Cabinet approved additional Central and State funding of INR 2.17 lakh crore.
The Indian real estate industry is predicted to reach a market size of $1 trillion by 2030, accounting for 13% of India's GDP. The real estate industry has been the third-largest contributor to economic growth.
Many frameworks, bodies, and regulations have also been introduced in the real estate industry, including RERA - Real Estate Regulatory Authority, which is designed to provide transparency to buyers.
There has been a high rise in the sale of residential properties and commercial establishments in the year 2022, and we hope to see the same growth in the sector until the year is over.