The government measures such as lowering of home loan interest rates are playing a significant role in protecting the interest of home buyers and making it an opportune time to own a house.
The pandemic inducing virus COVID-19 came into the lives of individuals out of nowhere and spread like a sheer wildfire, altering almost everything that came in its way. People across the globe found themselves confined within the four walls of their homes and the brick and mortar operations of offices, stores, and businesses came to a halt. These changes paved the way for a new professional culture called work from home, wherein employees had to carry out all their functions remotely from the safety of their homes. However, keeping in the mind the myriad benefits and the ease of work that this concept offers it will be safe to say that this is bound to become an integral part of one’s daily life. As per a study conducted by the research firm Gartner, over 75% of business employers plan to increase the number of permanent remote employees.
This new development has not only infused high degrees of trust in professional relationships but has also transformed the face of the real estate sector. The buying patterns of those willing to purchase property have noted significant influence arising from the modern changes in their work cycle.
Here are some factors that have fuelled this transition-
Emerging popularity of Peripheral areas
Before the virus outbreak, office goers looked for houses that were situated closer to their work-place. It meant that convenience and lesser travel time were the two primary drivers of a homebuyer’s choice. However, as remote working gains popularity with each passing day and seems to become a permanent aspect of one’s life the very parameters that governed one’s decisions have witnessed an absolute change. Individuals are now looking for offerings that provide them with extra space, modern amenities, and enhanced ambiance. For the buyers in the post corona era, the location will not play a major role, as they do not mind residing in a house that is bigger and cheaper as well as situated in the periphery of the city.
Coronavirus has adversely affected the economy and caused severe consequences, the brunt of which is being faced by employees across the board. With a reduction in earnings, organisations are finding it difficult to stay afloat and are resorting to all possible methods to ensure cost-cutting. One of the paths adopted by the corporates entails cutting the overall pay of employees, simultaneously resulting in low income in hand. During such persistent scenarios, the affordability aspect of properties emerges as a prime point of consideration. However, the government measures such as lowering of home loan interest rates are playing a significant role in protecting the interest of home buyers and making it an opportune time to own a house.
Covid-19 has brought with itself a sense of deep-rooted uncertainty and ambiguity, leaving mankind grappling for something that provides them with a feeling of safety as well as security. A rented house can never be that peaceful abode, rather it will continue to have the hassles of monthly payments and undue restrictions, leaving one at the whims of their landlord. Additionally, with property rates adopting a downward trend and the varied measures introduced by the government, the option of owning a house amidst a pandemic seems to be increasingly lucrative.
However, with the world adopting the new normal of working remotely, the charm of the above-mentioned trend stands tarnished, consequently rendering the distance factor immaterial. Further, the idea of work from home provides employers with access to a greater talent pool, making them more convinced about the permanency of this method of operating. Hence homebuyers are now looking for quality homes irrespective of the closeness to one’s place of work.
Rahul Grover is CEO of SECCPL. Views expressed are the author’s personal.