The pandemic has altered how we live, think, work or even socialize. It has changed our priorities, too. After the COVID-19 pandemic, we are beginning to realize the mental, physical and financial benefits of owning a home. As a result, the demand for real estate in India has seen a spike and is likely to surge even more in the next 6-12 months. Let us take a quick look at the factors that’ll be driving this demand.
The Work-From-Home Trend Will Lead To the Need for Better Homes
In the post-pandemic world, the work from home trend will continue to flourish. And, along with that, the need for ready-to-move-in homes will see a rise. In fact, according to reports, over 80% of the buyers will now be on the look for ready-to-move-in homes. The reason being: the uncertain timelines of under-construction projects.
The fact that construction work is postponed due to a lack of labourers; is bound to meddle with the timelines of upcoming and on-going under-construction housing projects. The delays in the deadlines will bore heavily on the home-buyer from both emotional and financial standpoints.
However, with ready-to-move-in homes, the buyer will have no such concerns. In this case, one can buy a home today, and move in the very next day. So, it is hardly a surprise that the demand for RTMI homes will rise in the days to come. Financially too, RTMI homes are more sensible than buying under-construction homes. To understand better, read our blog post on the advantages of ready-to-move-in homes.
The Low Rate of Interests Will Spike Up the Demand, Especially For RTMI Homes
The spike in demand for ready-to-move-in homes is not new. It has been a prominent trend in real estate for some time now. Consider this: the housing sales went down by 11% in 9 major cities across the country during the last fiscal year, but the demand for RTMI homes rose at the expense of under-construction properties. According to the data available, in 2019-2020, the sale of RTMI homes increased by 20 % as against 15% in the previous fiscal year. The rise in demand for RTMI homes will be further enhanced by the falling rates of interest.
The current rate of interest on home loans is 7-7.5 %, which is nearly at a 15-year low. When combined with other factors like the uncertainty around builder financial strength due to the pandemic, the lack of labourers at construction sites and the delays in timelines for under-construction projects; one can conclude that the low rates of interest will lead to a spur in the demand for real estate in India, especially for RTMI homes.
Reverse Migration Has Led To a Spike in Housing Demand
The demand for real estate in India is bracing itself up for a new post-COVID-19 world. A particular trend that is driving this demand is reverse migration. It has been a global phenomenon, whereby, a large number of people have returned to their own countries of origin during these troubled times. This trend is very evident among migrant labourers, and can further percolate to skilled professionals as well. In Tier 1 cities, the homeward bound NRIs will drive the housing demand. This class of buyers will be on the look for ready-to-move-in homes in top 7 cities, including Mumbai, Delhi, Bangalore, Pune and Kolkata among others.
Millennial Behavior to Change; May Drive Demand for Residential Real Estate
According to 360 Realtors report, 75% of the millennials in the country would want to buy a home in the next 3-years. The reason for the rising real-estate demand among the millennials results from numerous factors: including a shift in attitude.
Up until now, the younger generation preferred rentals to purchases because it offered better mobility in career choices. In a pandemic-stricken world, mobility of this generation of buyers is already compromised. Now, they are more likely to opt for stability. This shift in attitude will lead to a shift in their housing needs. More and more millennials will gear-up for homeownership, and this will lead to a subsequent rise in the demand for real estate in the coming months.
To sum it up, the COVID-19 pandemic has changed the way we live, and some of these changes will continue to be, long after this pandemic is gone. Some of these changes are bound to impact the real estate demand in India, and the sector is already trying to re-invent itself to understand buyer sentiment and to meet emerging requirements.
For most of us, living in the crowded downtown may not be feasible any more. The demand will tilt towards satellite townships that are better-planned; that offers easy connectivity to business and entertainment hubs of the city, and therefore offer a better quality of life. And, factors like safe space and lesser density of humans will come to play an important role. That’s where we come in. At Narang Realty, we believe in safe and open spaces and fewer number of families per acre.
Our Andheri West project, Windsor Grande Residences is spread out over an expansive 7-acre land parcel with approximately only 120 families. In Courtyard, our Thane project, nearly 75% of the land area is open to the air, with the towers only occupy a 1-acre footprint in a 7-acre development.
To explore further, visit our website at www.narangrealty.com and take a virtual tour today. To find out about safety and social distancing protocols on our projects, visit our sales lounges or reach out to us at 022-67890202.