Homebuyers Look For Bigger Flats as WFH Becomes Norm

Metropolitan and Tier 1 cities have seen a consolidated surge in the real estate sector during the last few years. With improved and thoughtful regulatory policies and rationalised tax structure, consumers have a revived interest in this area. The restored customer certainty has settled the market and established a framework for gigantic development. It is a fact, though, that the crises created by the pandemic have brought about many changes in the way residential investments are taking place. Consumer needs have changed from the way they used to be a few years ago, while new requirements have come up simultaneously.

With the work-from-home model taking over the corporate sector, people started realising the importance of having a place that could support all their needs during these testing times. The pandemic had a variety of impacts on the real estate segment. Whilst wellbeing concerns and stay-at-home requests prompted fewer purchasers looking for houses and fewer merchants willing to list their properties on rent-lease, a large segment of people were also found interested to invest in bigger properties to accommodate rising requirements.

For IT/ITeS companies, the work-from-home model is increasingly becoming an integral part of their long-term strategic plans. Business CEOs across the globe are already looking to minimise costs, and real estate is their first target. Smaller properties are now deemed favourable rather than big workplaces, with more prominence being given to health, hygiene and social distancing norms, over space efficiencies. The same change is also leading to an increase in demand of owning a home big enough to provide space for all members to work and deliver with comfort. Some buyers are also moving towards owning a home away from the hubbub of metro cities, since the need to stay close to office has reduced. As people find it profitable to move to more affordable suburban locations, the demand for consolidated properties are rising there. The more affordable cities in India are seeing a preference towards plotted developments or builder floors. On the other hand, in cities like Mumbai, Delhi, Gurgaon, Noida and Bangalore, a tilt towards well-developed societies and apartments is being observed, that offer benefits like an inclusive cleaning system, gyms, clubs and markets at a distance of a few metres.

In a report on new growth prospects in India’s real estate, a renowned property financier firm has, likewise, shown that in 2021, the sector would keep on being in the mid segment, with developers endeavoring to receive rewards of solid repressed interest, while consumers, ie. home buyers, getting the benefit of affordable residencies. The change goes hand-in-hand with developments in the home loan sector. In RBI proceedings, to keep the repo rate unaltered at 4%, home purchasers can, at present, return home credits for as low as 6.65% yearly premium, along with the home credit loan fee of 8 per cent. Value development in the lodging fragment has also been squeezed in the previous year due to impact on demand.

Another aspect that has brought a change in the market is the concept of ready-to-move-in housing developments and townships. With no risk of delay in completion of the project and associated amenities, ready-to-move-in flats are the key to avoid uncertainties of space, size of rooms, view from apartment and quality of construction. It makes investing in residential properties simpler and hassle-free. For people looking to rent a home or buying on EMIs, a ready-to-move-in home works well. It gives the buyer a sense of security, as it also allows them to check on neighbors as well as infrastructure in the vicinity before they make the investment decision.

The real estate sector was expected to reap revenues worth $180 billion within a year. With a revival of consumer demand, the housing sector itself was expected to contribute 11% of GDP by 2020 and continue to impact India’s overall economic performance. Those figures have definitely changed due to the pandemic, although now, residential investments are seeing a surge, leading to an exponential growth, with customers too getting better satisfaction along the way.

The author is CEO and Founder, Investo Xpert.

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.