Even though India’s real estate sector was emerging out of a highly dull phase after two waves of the pandemic, the real estate sector in particular has been able to make progress after undergoing dramatic changes during the two outbreaks. The rising cases of the new variant, however, do not bode well for the sector.
Covid-19 has changed the way we work and live, and is going to have a longstanding impact on many sectors.
Home sales shown significant improvement in the period between Q2 July and September 2021, Q3 2021 indicating that a turnaround for the real estate sector might be around the corner.
The pandemic has changed our perspectives on real estate. As we accept new norms, particularly in our workplaces and homes, the way we work has changed as well. The impact of covid has also drastically altered consumer sentiments across industries and real estate is no different. However, the pandemic has taught us all to adapt and be agile.
With the present emphasis on remote working, the value of owning a home has been re-established as a secure and necessary investment. Residential real estate demand in 2020 has acted as a trigger for the sector’s revival in 2021.
Real estate is coping with the changes in times of the covid pandemic and the sector’s strategy to remain in shape. Over the past few years, the affordable sector has been given a push by several government initiatives. People from low income groups (LIG) and economically weaker sections (EWS) comprise 80-90% of the country’s total population.
Home buyers prefer to shift to peripheral areas for a bigger home at affordable prices. The work-from-home and online education culture has resulted in buyers seeking larger homes, even if it entails moving to peripheral areas. They will opt for homes in newly launched projects
In terms of consumer preferences, demand for bigger homes across all BHK configurations has risen post-covid. The 2BHKs continue to be the hot favourite.
The real estate business is going online. Online home sales are beginning to gain some traction. Sales have started driven through virtual property tours, easier payment models, and special offers.
During the past few months, homes have been transformed into offices, classrooms for our children, and a place for us to relax. In times like these, potential home buyers seem to prefer multi-functionality, gated communities and homes with additional amenities. There is a clear shift in the importance of owning a house when compared to renting one. Millennials who want to own a place are looking at home loans with attractive interest rates to invest in real estate. As a result, demand for residential properties has increased.
The way people invested in real estate has changed as a result of the new normal. The residential market is expanding as more people realize the importance of owning a home. Buyer preference has shifted primarily to affordable properties in the residential segment, which has seen a growth recovery in demand. This trend reiterated the need for space for work and recreation which inclined consumers towards not compromising on the size of the house.
The pandemic has drastically altered the homebuyers’ preferences, leading to the emergence of new asset classes in the residential segment which were not that popular amongst the buyers until a couple of years before. The forced lockdowns and continued work for home and online schooling have led to the demand for bigger and spacious homes with a segregated workspace. Apart from residences located in self-sustainable gated communities, independent floors are also being preferred by homebuyers. Similarly, the demand for second homes has also seen an uptick trend post the pandemic.
Homebuyers these days prefer residences that can accommodate space for remote working, with more outdoor open spaces and gated communities having state-of-the-art amenities.
This shift in preference is significant because of the pandemic and its socio-economic impact A majority of homebuyers now prefer a fully-equipped workspace, a dedicated area for fitness, a private space for their weekend meetups, a play area for children while considering other important factors such as location, ticket size, thoughtful design, cutting-edge technology, etc. This has led to disruption in the overall approach adopted by developers while considering it as an additional component in their product offering.
