The COVID-19 pandemic had a major impact on the Indian residential market. This sprawl has led to several trends, including increased demand for home buying over renting, high demand for spacious homes, and Environmentally Friendly Units which volunteered for the growth of this section. When it comes to real estate, Bangalore has always been a unique kind of market. Bangalore is an ideal place to live due to its high standard of living and abundance of career and educational opportunities. It is a city that has seen massive population shifts and it now has a diverse population that includes students, bachelors, working professionals, and families. Housing sales in the city continued to climb rapidly in 2021 and the majority of residential demand comes from end-users. This year it is set to be huge, as the residential market adapts to change and is preparing to enter a new era of growth, innovation, and technological advancement in a pandemic-hit economy. Bangalore's real estate market is likely to revive faster than those of India's other major cities owing to high sales.
The necessity of owning a home
One of the most appealing propositions is to own a home that you can call your own. People are beginning to recognize the importance of physical and tangible assets which provide a greater sense of peace and security than liquid assets. With the growing importance of home ownership, investment in residential properties is undoubtedly going to be in high demand during the ongoing pandemic. When you own a home, it becomes a significant asset as the property's value increases over time. According to homebuyer's preference, over 70 percent of potential home buyers prefer to purchase over renting and 52 percent of these purchasers also believe that a home is a necessity rather than a luxury.
When the pandemic hit, it forced everyone to stay indoors, and therefore owning a home has become a priority for many. As a result, it has become an important and fundamental component of millions of people's lives. We've been forced to work from home for months because of the pandemic and juggling our professional and personal lives from home is a new experience for all of us. So, many people now have realized the importance of having their own space that can easily accommodate their needs and requirements within their own living space. The majority of potential homebuyers demand a home office and outdoor space with additional privacy.
During the Covid-19 pandemic, the importance of owning a home has grown rapidly. Therefore, prospective home buyers are willing to pay a higher price for a property that meets their fundamental needs. This suggests that owning a home is more of a necessity than an investment strategy.
Demand for spacious homes and ready-to-move-in units
There has been a shift in demand for larger spaces across all segments since the outbreak of the pandemic, given that people are spending more time at home. COVID-19 has emphasized the need for large homes for both a comfortable life and as a sound investment. The rising work-from-home and home-schooling culture are expected to persist, which is why cities are seeing an increase in the number of inquiries for bigger spaces. The demand for larger homes in peripheral areas and a desire for a better lifestyle has fueled growth in the market which is expected to continue.
While you may have enough ideas when you are looking for a new home, the idea of moving into a home that is already furnished and fixtures sounds appealing. Given the time and effort, it takes to find a new home, offering a fully furnished unit is a profitable option. To avoid constant delays and regular follow-up with builders, ready-to-occupy units have become the first choice for many homebuyers. Developers recognize that modern home buyers are pressed for time. Therefore, many have produced novel concepts and options to provide apartments with the necessary furniture such as beds, sofas, dining tables, and wardrobes.
Technology Adoption and Environmentally Friendly Sustainable Units
For homebuyers, a smart home is undoubtedly one of the best benefits of technology innovation. There's nothing more peaceful than knowing that all of your systems are running at peak performance without the need to constantly check them. With home automation, you can remotely control entertainment, lighting, appliances, and more to make your schedule more efficient. Your system turns off the lights at night, so you don't have to worry about wasting energy. You can automate your system and program it to follow your preferred routine.
The real estate business is expected to improve in terms of environment, governance, and sustainability. As climate change and increasing urban density led to congestion, developers are focusing on self-sustaining communities and per capita space needs. A green home is built using efficient building materials and best construction practices, from operation to renovation, to provide occupancy comfort while minimizing non-renewable resources. When compared to a conventionally constructed structure, a green building is thought to save at least 30 to 40% on energy. These are the main reasons for the boom in residential real estate, especially in the budget friendly segment.
Over the last 1.5 years, the Central Government and various State Governments along with the Reserve Bank of India have consistently supported the real estate sector. For example, the RBI has maintained the status quo on the repo rate at 4%, keeping it unchanged. Many state governments have also offered stamp duty reductions which have resulted in a revival of demand by encouraging to complete real estate transactions. To entice potential home buyers, real estate developers have also been offering discounts and freebies. Given the positive effects of such actions, developers are expected to continue making such exciting offers in the short to medium term.
Bangalore homebuyers have shown a preference for well-designed projects with uncluttered & open spaces and a diverse range of recreational options. Areas surrounding technology parks have emerged as a popular choice among Bangalore's working professionals.
While there has been a surge in demand for ready-to-move properties in the city, various under-construction developments in locations like Koramangala, Hebbal, and Bannerghatta Road have also gained traction. With proximity to offices no longer being a deciding factor, Homebuyer’s preferences have changed since the pandemic. West Bangalore, particularly the Peenya Industrial Area is one of the city's main industrial areas. This region is undergoing massive infrastructure development which will increase connectivity and raise residential prices in the future. Buyers from all around the city will be drawn to this area's upcoming residential projects. Spacious homes in less polluted, greener places are chosen and hence, the Outskirts of North Bangalore and locations like Bidadi and Kanakpura are gaining popularity in recent years.
To conclude, the pandemic has altered the dynamics of Bangalore's residential real estate market. Instead of the city's most well-known regions, several new locations are experiencing strong demand. Considering the positive outlook, it seems reasonable to expect India's residential sector to perform extraordinarily well in 2022 and home sales will pick up this year.