People wonder why home buying continues to see an upswing when COVID-19 brought a recession across the globe. Something that has caught our attention, is how the parameters of buying have witnessed a tremendous change. Let’s put an end to the big question of how things have changed for homebuying in one year of COVID-19.
There is no doubt that COVID-19 impacted the economy. It led to a major modification in the mindset centered around property investment. No one could have predicted the way the year eventually panned out for the housing sector. Sales surged towards the end of the year backed by a highly emotional and sentiment-driven demand for homeownership.
Now, exactly one year since COVID hit us, the housing sector is poised at the cusp of a tipping point wherein new home buying trends have emerged that are here to stay. For instance, before COVID, housing and real estate experts had pointed out that virtual reality or digitization will not mark its footprint on the sands of real estate very soon. Contradictory to this, the past year has turned the market upside down technologically in terms of buying and selling homes. The home buyers are now persistent with their wants and do not compromise with their requirements.
Have a look at how they continue to engage in home buying albeit with a few changes in preferences
The sentiments of owning a home
When everything begins at home then why shouldn’t your investment? Sentiments behind owning a house after one year of COVID-19 became the prime demand drivers for homes. People stuck in rented properties during lockdown realized the tremendous benefits of owning a house. Hence, the demand dynamics in the housing market changed tremendously. Also, homeowners avoided renting their properties due to lower return rates, which spiked housing investments. There has been a spike in the demand for property in Tier-2 cities catapulted by increasing reverse migration. The credit goes to the trend of working from home.
Is virtual reality on the cards for home buying after one year of COVID-19?
A big yes! The housing market has gained immense momentum with real estate agents quickly shifting to virtual tours of properties. From 3-D visuals to drone shoots, viewing a property virtually has added a new dimension to the housing sector in real estate. A crucial aspect of home buying, the client and broker meetups are facilitated through Google Meet and Zoom calls. RTGS, NEFT, and UPI became the new modes of payment eliminating the handover of cheques. The complete digital property tours have given a quantum leap to the sector. Buying a home online does not feel like an alien concept anymore.
Demand for larger homes and township living
After one year of COVID-19, homebuyers are increasingly inclining towards buying larger living spaces.. As per data with Square Yards research, over 70% of the total online searches on Square Yards during the year 2020 were for larger residences. Further, a recent report by Square Yards titled- Evolution of Home Buying Trends in the COVID era, stated a 40% rise in demand for 3 and 4BHK units in H2 2020, as compared to H1,2020.
One year of COVID-19: The impact of work from home culture
With working from home being the new normal, people are shifting towards living space with an added flexible room. The report further stated that more than 48% of the home buyers preferred properties with an extra room that can be transformed into a study or an office. The sales figures of Square Yards second this trend. 46% of the total properties sold during the Jan-Dec 2020 period were accompanied by a flexible room.
Township living has also witnessed a spike because of people’s need to have everything under one roof, be it co-working spaces, fitness centers, cafés, or shopping options. With an increasing demand for larger homes, homebuyers are searching for affordable options. Hence, the push is towards suburbs. Across the prominent cities of Mumbai, Hyderabad, Pune, and Bangalore, the suburban areas marked a rise in capital values because of this demand.
Added safety measures in properties
Social Distancing and hygiene are on top of people’s priority list and homebuying after one year of COVID-19 is highly dependent on these two aspects. Real estate developers are rigidly complying with the safety needs of homebuyers. For instance, the entry of outsiders is strictly monitored and limited. Adding more, handwashes and sanitizers are kept at every entrance of societies and townships including the common areas. Homebuyers are now demanding temperature checks of any vendors or delivery agents to avoid any loopholes in the safety of their abode.
One year of Covid-19 has not only changed the process of home buying but also altered the parameters that influence the final purchase decision. From buying a home online to stretching budgets to accommodate an added room and moving to peripheries or Tier-II cities are all trends that are expected to become the norm in COVID era.
