The COVID-19 pandemic has drastically transformed several aspects of our lives and businesses are no exception. Similarly, the real estate industry has also witnessed changing trends in terms of buyer preferences in the aftermath of the pandemic.
The outbreak of the COVID-19 pandemic has been an eye opener for India’s real estate sector in many ways. After an initial slump and some losses, the industry recovered to steadily find its mojo from the second half of 2020 onwards and then 2021 represented a year of steady recovery and growth for the sector in spite of some dips and a second wave. The million dollar question for developers and industry observers now is- What are the new-age buyer requirements after the pandemic?
End-users are investing in residential property in the affordable and mid-income categories and many people are looking at shifting within the next year or so. Many people are inclined towards investing in real estate in their hometowns and cities and may shift there with permanent work from home options or hybrid working arrangements. Many surveys have indicated how numerous home owners or renters are looking for a better or permanent accommodation within a year.
Here are some of the key trends worth noting in this context:
- People are now more inclined to buy homes nearer to workplaces in major cities as per reports. This trend is being driven majorly by millennials who prefer to avoid traffic congestion and long daily commutes. Many developers are hence coming up with smartly priced projects in areas which are major IT and ITeS hubs, even localities in the outskirts of the city or peripheral zones and also areas which are leading manufacturing, finance or business hubs. They are offering compact or studio apartments for buyers near their workplaces which are finding huge traction as well.
- Buyers are now more inclined towards finding bigger and more spacious homes after the COVID-19 pandemic. They are looking for greener projects with open spaces and urban amenities near their workplaces. Energy-efficient and health-focused homes are also witnessing higher demand amongst new-age buyers.
- Developers feel that millennial buyers now want bigger and greener homes in gated communities with easy connectivity to highways, daily essentials, educational institutions, hospitals, parks, supermarkets, recreational and entertainment zones and of course, airports/railway stations.
- Many people are looking for higher outdoor space along with privacy, which is something that has pushed many NRIs and global Indians to invest in second homes in their hometowns and cities in large gated projects.
- Many new-age buyers are also seeking second/holiday/get-away homes near major cities as urban retreats after witnessing the impact of the coronavirus pandemic.
- Ready-to-move projects are seeing higher demand in comparison to under-construction properties. While choosing second homes, people are looking at availability of proper healthcare and social infrastructure above all else.
- New, financially and technologically savvy consumers are entering the market and they are looking for healthier lifestyles and environments. Integrated townships are to their liking since they offer parks, gardens, security, convenience stores and even schools within the premises.
- Developers are coming up with more sports, health, wellness and fitness amenities for catering to requirements of buyers.
- Urban planning is gaining more ground as developers collaborate with leading architects to fulfill customer visions of neatly planned homes and communities which offer security, happiness and better harmony with the environment.
- New-age buyers are seeking higher ventilation and smart-home technologies including automation and others.
Some Other Trends Worth Noting
- Developers and real estate platforms are increasingly going digital with special offerings like 3D project walkthroughs, digital signatures, secure payment gateways and more. This is because buyers are showing a clear tendency towards researching and viewing projects online before their purchases.
- Buyers are also more inclined towards purchasing multi-functional properties which offer added zones like reading corners, workstations, activity zones and a lot more.
- Breathing space and ventilation are also very important for buyers these days.
- Locations with good social and physical infrastructure with comparatively reasonable pricing are now finding favour amongst potential home buyers. Home buyers are choosing properties which are well connected to transportation points including metro and bus stations and cab services along with being linked to the CBD (central business district), and other necessities as well.
- In a recent trend, buyers are also willing to stretch their budgets slightly in order to buy bigger homes with better amenities.
- Home buyers are also choosing independent home or villa projects in gated communities or plotted developments as well.
- Home buyers are also showing clear preference for branded real estate developers and their projects in place of unorganized and smaller market players. Buyers are carefully reviewing the track record and history of these real estate brands, their overall reputation and performance and quality standards. They are preferring developers who are financially more stable along with possessing solid track records and capabilities of execution.
- Demand is the highest for 2 BHK units along with 1 and 3 BHK units. There is some demand for 4 BHK units as well. The highest transactions are being seen in the price band between Rs. 60-80 lakh while some are buying homes priced up to Rs. 1 crore and higher.
- More than half of all buyers are reportedly getting their purchase leads via online real estate platforms in comparison to earlier years.
- Buyers are increasingly looking for air purification and water purification amenities along with natural light, ventilation and thermal health in tandem with pest and dust repellant technologies.
- Other amenities in demand amongst buyers include vertical gardens, reflexology pathways, apartment areas which are free of radiation, aromatherapy dispensers, roller shutters, circadian rhythm and dawn simulators, sun decks and balconies, and more.
- More such wellness amenities are being included in projects for buyers who now prefer higher interactions with nature, privacy, quality sleeping cycles, better work-life balance, more fulfilling personal lives and higher safety and security quotients.
These are some of the factors that developers are keeping in mind while designing their new launches and other project offerings. Many developers also offering attractive discounts to buyers for propelling demand in addition to flexible payment plans. Record-low interest rates on home loans and relatively stable prices of property are also contributing to higher demand.
