Key emerging trends amid Covid-19 that may shape the future of residential realty in India

By: |
September 21, 2020 5:54 PM

COVID-19 has altered homebuyers’ preferences and their housing requirements due to which we are witnessing new trends in the housing space.

real estate, housing space, Covid-19, Key emerging trends in residential realty in India, homebuyers preferences, housing requirements, larger homes, DEMAND FOR PLOTTED DEVELOPMENTSHomebuyers prefer to deal with the large corporates and branded developers as it provides them a feeling of comfort.

The unprecedented crisis created by the COVID-19 outbreak has proven to be yet another turning point for the Indian residential real estate sector. The importance of possessing a physical asset has been felt much more during these challenging times when ‘stay at home’ and ‘stay safe’ seem to be the mantras for avoiding infection. Also, with homes now being utilized as workplaces and for online education, the definite need for owning a home has been established.

A few key emerging trends, according to a FICCI-ANAROCK report, that are likely to shape the future of the residential realty sector include:

NEED FOR LARGER HOMES

With the forced lockdown and continued Work from Home (WFH) and online schooling, people are now eyeing larger homes – even if they have to move to the peripheries to fit their budgets. There’s high demand for 2.5 BHK and 3.5 BHK configurations so that the extra space can be converted into a makeshift workspace.

HOME LAYOUTS MAY BE ALTERED

The changing consumer preferences have forced developers to go back to the drawing boards and come up with newer home layouts. There is a requirement for functional and flexible homes that can accommodate working areas as WFH is the temporary new normal.

A RISE IN DEMAND FOR PLOTTED DEVELOPMENTS

Self-owned homes (villas or row houses) provide better social
distancing compared to the apartments. As a result, demand for plotted developments is on a rise. Also, with smaller plots in the range of 1,500 sf to 2,000 sq ft now being offered, there’s high demand for such projects. Besides, with many professionals WFH for a considerable time in the future, one can work from anywhere and need not be housed in the core
city areas.

WEEKEND HOMES & FARMHOUSES IN DEMAND

The hope of owning a second home within salubrious, green surroundings is now becoming an integral part of the urban Indian ethos – of course those with the financial means. Considering that weekend homes and farmhouses offer greater social distancing, there’s a significant rise in demand for such developments. In NCR, there’s a huge demand for farmhouses, and average monthly transactions have gone up from 2-3 in the pre-COVID era to 10-12 as of now.

LUXURY PROJECTS GARNERING GOOD INTEREST

This Target Group (TG) has not been impacted much by the pandemic. These homebuyers here have more time on hand to identify and shortlist the house of their choice. Add to it, developers are offering a good deal.

TOWNSHIPS MAY GAIN HIGHER INTEREST

There is a rising preference to live, work, and play in controlled environments. As a result, we may witness a rising interest in townships in the years to come.

HOUSING REQUIREMENTS MAY RISE IN TIER II-III CITIES

There is a rise in reverse migration across the length & breadth of India as the urban residents are looking to remain safe and be with the family. Also, with WFH being the new normal, working professionals can work from their hometowns. As a result, there may be a rise in housing requirements from the tier II-III cities.

DEMAND FOR READY-TO-MOVE-IN HOMES

Homebuyers are looking to purchase units that can be seen, views can be assessed, and are readily available. As a result, there’s a huge demand for ready-to-move-in units.

LARGE CORPORATES AND BRANDED DEVELOPERS

Homebuyers prefer to deal with the large corporates and branded developers as it provides them a feeling of comfort that their investments will not go in vain and the houses will be delivered as promised.

AN END-USER DRIVEN MARKET

It is important to provide deals and offers as per their requirements. Nearly 80% of the demand comes in from the end-users.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Demand for gold loans to rise as NBFCs, banks tighten underwriting norms for other loans
2Mutual Fund NFO October 2020: Benefit of FMP and ETF rolled into one – Check details
35 tips to build a highly diversified mutual fund portfolio