Searching Homes in 2021
The outbreak of the COVID pandemic and the resulting lockdown for the year 2021 has turned out to be nothing less than a roller coaster ride for the real estate industry in India. Lockdown has played an important role in making people aware of the importance of owning a home and having a roof over their heads in times of uncertainty. This was reflected in the increase in searches for homes during and after the lockdown across the country.
Extensive secondary and primary research conducted by Somya Buildcon highlights the top 5trends seen in 2020 that could potentially be the new standards for buying a home in the future:
Work from Home is a dominant demand for larger homes
work-From-Home (WFH) gained momentum, it turned out to be a boon for people employed in the service sector, as it allowed them to continue their work without having to go to their respective offices. Along with the WFH, student training also continued at home through online courses. In addition, all other activities - be it dance classes, yoga classes, medical consultations, job interviews, team meetings, and group discussions, etc. have switched to online mode. Now, with almost all of the time spent at home by all family members, people felt the need to reconsider their home buying choices, primarily to move/move to a larger home with more money. Space and privacy for all family members.
This in turn led to an increase in searches for larger houses such as 3 and 4 BHK. The share of 3BHK and more rose to 46% in 2020 against 38% in 2019; while searches of 4 BHK and above doubled after the lockdown was lifted. Additionally, 30% of total homebuyers were seen demanding homes over 1,500square feet in 2020, up from 25% in 2019.
Affordability Dominates Search Criterion
Due to the availability of many job opportunities on the back of the growing footprint of IT, industrial and business activities, major cities such as Jaipur, Mumbai, Pune, and Bengaluru have become the most favored cities for buyers of House. In addition, as affordability and proximity or good connectivity to the workplace have played a crucial role in buying a home; many buyers have opted for low-cost localities far from the city center but close to the main employment centers. Some of them include so many beautiful 2 and 3 BHK flats in Jaipur.
Tier-II cities are growing in popularity
On the other hand, since permanent WFH is seen as an option by some companies, many people who have migrated to subways and Tier I cities for employment have considered buying a home in their hometown. Therefore, Tier-II cities including Jaipur, including Vijayawada, Meerut, Mysuru, Aligarh, and Siliguri became the top 5 TierII cities for real estate investment in 2020.
Multi-story apartments increasingly preferred
More than 57% of buyers have opted for houses in multi-story apartments and gated communities, according to a Somya Buildcon study. As many multi-story apartments and large complexes have all medical, social, recreational, and retail amenities, these homes are increasingly preferred by people looking for accommodation.
South India obsessed with detached houses, the north with bigger houses
Interestingly, there is a noticeable difference between the type and size of homes preferred by buyers across the country, citing various reasons including a budget, locality price, family size, etc. While 60% of homebuyers in the Mumbai metropolitan area (MMR) opted for 2BHK and above, 73% of buyers in Jaipur were seen to prefer 2 BHK flats in Jaipur and above. In addition, 68% of buyers in Chennai preferred detached houses or plots, and 40% in all cities in southern India.
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