The global pandemic has changed the way we live, work, play, and learn. The last two years witnessed a dramatic change that reshaped India’s residential real estate sector. With home ownership taking centre stage, there has been a paradigm shift in the buying preferences of home buyers that satisfies the emergent requirements of the new normal.

The pandemic has brought a sea of changes in the mindset of home buyers, especially millennials, who are now increasingly looking at owning or investing in a home. It has drastically changed home buyers’ expectations. Being confined to the four walls of a house has made people re-imagine their idea of a perfect home. It shuffled the order of preferences for prospective home buyers.

Where earlier the location formed one of the major factors for choosing one’s dream home, currently that doesn’t seem to be the case. As the connectivity to offices or proximity to public transport hubs is still vital, it is no longer the only factor dictating home purchase decisions. On the contrary, dedicated study rooms, workspaces, and access to healthcare have moved up in importance in the decision matrix. The pandemic has taught everyone the value of having “me” and “we” spaces under one roof. Interestingly, the requirement for ‘SPACE’ was not just restricted to one’s home, but it went beyond that. As a result, consumers are demanding homes nestled in larger ecosystems that promise a future-ready lifestyle.  

Changes in the buyer’s decision matrix

Today, a home is more than just a place to live; it is an experience everyone in the family cherishes every day. And it is for these reasons that home buyers are seeking larger spaces and are showing a willingness to relocate to suburban or peripheral areas too.

The pandemic has caused people to reassess their priorities, reviving the ‘Roti-Kapda-Makaanconcept, which has thrust residential real estate into the spotlight with historically high sales and registrations across categories. The need for bigger homes has become obvious. Along with bigger homes, larger balconies and gated communities are becoming popular among new-age home buyers.

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A large group of about 34% of India’s population constitutes millennials. And in 2020-2021, about 50% of the home buyers were millennials. This witnessed a noticeable increase in demand for smart tech properties with high-speed internet facilities, along with enhanced safety and security features, that are driving home buyers’ purchase decisions. More time at home, aided with the right technology and dedicated spaces inside and outside of one’s home, has caused an influx of new-age content creators. A comedian in Mumbai found an audience in Miami; a housewife in Kolkata was able to turn her kitchen into a live station on YouTube, and the list goes on. It was only possible because their homes became their stage. 

With homes turning into hybrid workspaces and places to unwind, buyers have started opting for homes that offer a better lifestyle. There is certainly a change now in the consumer’s point of view. Along with location, there are many key aspects that dictate the buying decision. Present-day home buyers are also looking for spaces surrounded by nature, a healthier environment, and are willing to spend extra to upgrade their lifestyle.

Furthermore, mental well-being is another huge area that has gained importance. People have realised the importance of being physically and mentally fit. So open spaces like meditation centers, walking tracks, gardens, gyms, and recreational centres are being sought after as part of the amenities when the buying decision is being made.

During the pandemic, even people’s hobbies became more important and were placed on their home-buying checklist. Many hobbies need extra space. Pets at home and the need for their space are also a big factor in buying decisions recently. Hence, the need for more space drives real estate, creating demand for bigger homes. 

The world as we know it has been radically altered by the COVID-19 pandemic. People are living and thinking differently than ever before. Today’s buyers are gravitating toward choosing lifestyle over location. A paradigm shift in prioritising a good life with all its necessities and amenities is being witnessed. A right canvas truly has the potential to transform lives and mould futures.

This shift towards the lifestyle has also given an opportunity to the real estate industry to come up with more projects and develop new neighbourhoods and untapped areas. Especially where new infrastructure development activities are taking place, making them the ‘destination-next’ of real estate. There are many new projects which are coming up in such locations which suffice the needs of several home buyers with all the lifestyle amenities in one place and are offered at affordable rates too. Thus, balancing the need for a good location along with providing a great lifestyle to the home buyers.

(By Parikshit Pawar, Chief Marketing Officer, Shapoorji Pallonji Real Estate)