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