The pandemic marked a tumultuous period for the economy as a whole. While many industries are still reeling from the aftermath and the subsequent disruptions, the residential real estate sector bounced back quickly buoyed by the affordable mortgage rates, stamp duty cuts by state governments, improved home affordability, and a shift of sentiment toward owning a home. Residential real estate witnessed, in fact, the highest ever yearly sales in FY 2021-22.
Covid-19 has transformed our lives on many levels including how we perceive real estate leading to the industry witnessing many new trends. There is an increasing customer inclination towards branded developers with good governance standards. With evolving consumer preferences, homebuyers are not just looking for a place to reside but looking at an integrated ecosystem that aids better quality of life. Some of the key trends are:
Homeownership and security over renting properties
Despite an inevitable economic slowdown and the perceptible uncertainty in the market, the idea of owning a property has regained popularity. The pandemic has reinforced the emotional security of homeownership. Consumers who had been content with rented housing are expressing a desire to buy a home in the near future. After spending a significant amount of time working indoors, many homeowners have come to appreciate the usefulness of larger homes.
Larger apartments with thoughtful spaces
The pandemic influenced consumers across segments to re-assess the need for bigger homes. The real estate segment witnessed an increased demand for luxury homes that offer experiences of the highest standard. With time it is established that the remote working culture is here to stay at least in the medium term. In light of this, professionals want spacious homes that allow them to set up a comfortable workspace. There is an escalated need for additional spaces in an apartment, private gardens, balconies/decks, and recreational areas. Residences that offer the best-in-class services, curated experiences and top-notch amenities offering a superior quality of life are observing high demand.
A holistic ecosystem: from fitness to leisure
Young, educated, and health conscious are certain attributes that describe our typical modern home buyers. They are now searching for secure, well-designed, and self-sufficient areas that provide everything under one roof through expansive communities, such as co-working spaces, cafes, convenience stores, fitness centers, and reading lounges, among others, within the township. To enjoy a getaway without ever leaving their homes, consumers are also looking for peaceful nooks in the comfort of their homes.
Projects with multi-tiered amenities, bespoke social, sports, and children’s clubs, long-elevated walkways under the skies, and specially curated wellbeing spaces that encourage people to live an active and healthy lifestyle are the talk of the town and are here to stay. Creating an ecosystem within the project will cater to the ever-evolving consumer preferences and continue to remain relevant in this competitive market.
Digital and technology advancement is here to stay
In real estate, digitization will dominate house tours, property administration, transactions, capital allocation, and even consumption habits. Advances in artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) are also driving the creation of fresh opportunities and improving the client experience. This has compelled developers to adopt VR technology to allow potential house buyers to take an online virtual tour of the properties using 3D apps. Online open homes, virtual bookings, and augmented reality tours are paving the way for luxurious homes with hi-tech interiors and amenities within the property premises, creating an immersive experience.
As a result of all these emerging trends, the real estate sector is at the cusp of a multi-year upcycle. With a young population and a need for expansion, the sector is well positioned for favorable growth in the upcoming years.
