Why do we live in cramped spaces, built in unhygienic and overcrowded neighbourhoods that are bursting at the seams? Why do we sacrifice our connection with nature? And why must we watch our children suffer the true cons of hard core city living?
Two-word answer – Daily Commutes
Our professional engagements take away most of our time and other things that make up our daily lives are what they are. So, what does the urbanised human brain look at to create more free time? The commute to and from work.
WFH(Work From Home) is Here to Stay
Work from home has surprised naysayers across business lines. Most business leaders from India Inc. have spoken in its favour, admitting that WFH has enhanced workforce productivity in almost all situations where it is possible to implement remote working.
Mercedes Benz India is looking to mandate only 3 working days a week for their office staff, with the other two being WFH days, as they resume operations at their factory and offices. “The new normal is a mix of online and offline. It is a mix of both. I am impressed how well it works. I now find that WFH works really well and I am very comfortable.”, Mercedes Benz MD & CEO, Martin Schwenk quoted to the TOI in this interesting read.
Increasingly, more and more businesses are encouraging their employees to work from home or from client’s locations, to enhance employee safety that is jeopardised to a large extent today by commuting. As offices have restarted after a long shutdown, only those with private vehicles or residing close to their workplaces are being asked to come to office, while the others are being given an option to WFH.
The old ways are clearly out of fashion; businesses have become more flexible, and instead of being rigid about office life, most are rethinking it. Instead of imposing industrial age hours, many are coming forward and enabling workers to create a schedule around what suits them. And all of this, is change which is anything but temporary.
Commuting Distance Concerns are Passé for Many!
As daily travels to work and back become unnecessary for an increasing part of our workforce, many will break away from the shackles of cramped, overrated, and expensive downtown housing, opting for spacious and healthier suburban homes instead. This newly created demand will exhaust the supply that exists in the peripheries soon and will spur on newer developments, further away from central business districts.
Walk to work is no longer the sweetest spot for housing – a paradigm shift none had foreseen this early on our timelines. Replacing that trend today is a combination of spacious, healthy, and affordable homes, far away from workplaces and its drawing buyers and renters alike.
Affordability is Necessity
WFH has seen widespread acceptance only because circumstances forced the whole world to implement it, simply to survive. The same circumstances have brought other issues in its wake. Reduced salaries and job insecurity. As core industries like iron and steel, auto manufacturing, aviation, tourism, and retail are all balking under financial stress, salary cuts and job losses are the omnipresent threats.
Thankfully, in a work from home enabled world, many professionals will be able to shift to more affordable homes in the suburbs and significantly decrease their costs of living while maintaining a healthy savings rate.
Here is an example.
In Bengaluru, the average price for a 1,000 sq. ft. apartment in the city is INR 70 Lacs. The same apartment in the peripheries cost INR 43.50 Lacs on an average – a 38% difference in the cost of living. Even with a 20% to 30% salary cut but with a reduction is daily commute costs, it clearly means that savings shall immediately increase for families moving to the peripheries.
Ownership is Priority
Before we go into the chicken and egg territory of rent or buy (Square Yards lists some delightful Rental Properties too, find there here) lets continue that Bengaluru story, only this time from a renter’s perspective.
Inside Bengaluru city limits, the average monthly rent for an apartment is INR 18,500. If rent is paid for 5 years at that rate (standard escalations applied), the total payment made to the landlord stands at about INR 11.50 lacs or almost 25% of the cost of an Affordable Home in the peripheries.
Buying is the no-brainer option now.
While local investors are slowly beginning to fathom the early rental income opportunity, the builder fraternity has figured this out already, and top developers are focussed on suburban land acquisitions with a single purpose – to build affordable, quality housing.
