The world is looking forward to see a sea change in the future of residential real estate in India. Due to the pandemic caused by Corona virus all over the world, created a scare on the people for future safety of their family and near one’s. It is also having a clear impact of the rental population who will now be force to think of their next move to own their own safe non-committal approach towards home ownership. The existing flat owners may also think of having a second home little away from the hustle - bustle of the city area. Now it is in the mind of real estate companies to foresee, what will buyers look for in a property, when they come back to the market in the post-COVID-19 world?
Space Constraints: In lockdown condition most of the people working in IT sector, teaching, banking, media executives and hoards of other profession which can be done without face to face physical contact have started working from home. The work from home has also proved to be quite efficient with the help of newer technologies like video conferencing, online class rooms using various apps. People in some cases are expecting that even after lock-down gets over , the work from home concept will be practiced by many corporate specially in IT and IT related professions, online teaching & coaching professions. This concept will make changes in the lifestyle, working hour .Many people would have been forced to make quick changes in their homes, to accommodate this new lifestyle. However, others may have been faced with space constraints. It is quite obvious that these people will look for larger homes, to accommodate this new lifestyle. Easier loan terms from banks and ready housing stock in India’s prime residential market may encourage home buyers to acquire bigger homes. In future, sale of 3 BHK homes are expected to increase, the demand for villa based projects may also rise, in India’s big cities. In 2-tier and 3-tier cities the prices of land may increase as we will see more buyers for independent homes.
Housing Projects with separate working space: As work from home has become popular, some builders will start making provision for working cubicles within the housing complex with secretarial and other services. This will give more professional feeling and it will be a concept of walk to office. This will help executives to work in isolation without being disturbed at home with day to day household requirements.
House with more open spaces: Stepping out of homes and going out on leisure walk was an integral part of life. But this lock-down restricted everyone within the four walls of the house. Now new home buyers will look for a home with sufficient space to get fresh air. Post lock-down the balcony and open space will attract more buyers.
Impact of India becoming Global Manufacturing hub: After Wuhan tragedy and the negative attitude of China towards trade practices with other countries most of the overseas companies having their manufacturing set up in China have closed their operations and are looking for alternating location to shift their manufacturing set up. The most desirable destination being India, it is expected over 300 large companies including MNC’s from China will shift to India. This major influx of overseas companies will gradually turn India into a Global Manufacturing hub. Central and State government have already started working to identify large stretches of land for the purpose. This will generate huge employment in Construction, Pharmacy, Automobile and automobile parts, Electronics, Telecommunication, Information Technology etc. There will be urgent requirement for large housing facilities in tier -2, tier-3 cities and in nearby location where these manufacturing units will be establish.
Amenities in a housing Project post COVID-19: Experience during this lock-down period has not been very good due to absence of amenities in most of the housing estates. Till now it was important to see if a project has swimming pool, a Jacuzzi, Gymnasium. Post COVID -19 the list will be added with the presence of medical shops, hospitals and grocery stores. Similarly, a housing project with more open and spaces, in the form a park, or a football court, or badminton court, may attract more buyers.
Desired localities after lockdown: Post COVID-19 situation, buyers of apartment and independent houses will look for a safe locality with close proximity of healthcare facility. Housing projects in suburbs that have less population density and more green spaces will have more takers than projects in the city centre with higher population density. This change will also reflect in pricing.
Prospects for second home: A potential segment for purchase of bungalows and independent house would start planning to make a second purchase. This trend will make housing markets in Goa, Shimla and Dehradun more popular and fuel price growth in these centers.
However, to conclude, we can say that the demand for housing will be more in the sub-urban area and tier-2 and tier 3 cities. The increase in the price of a housing property will be more in the sub-urban compared to Metro Cities.
KW Group's Anthem.