COVID and Realestate
The COVID crisis has not only put real estate sales at a sluggish pace but has impacted the buying patterns of the consumers too. At the onset of 2020, when the pandemic outbroke in India, the sales of homes dropped putting the consumers in a predicament with rampant job losses, new cultures and customs like work from home and online classes for children emerged. As time went by, the residential real estate sales showed an upward trend although it did not climb to the height of the pre-COVID levels but the preferences of the end-users also started shifting. Along with people realizing the importance of their own homes they started looking out for larger homes too as the lockdown necessitated the need for larger spaces. The new conditions made people look for larger homes than before and the market watchers say the size of the apartments has started playing a pivotal role in the buying decision. Although this was the emerging trend worldwide, Bangalore too started witnessing a surge in demand for larger spaces across several micro-markets.
The outbreak of the novel Coronavirus have disrupted the markets and the buying patterns of the end-users of real estate and this is more so in larger cities like Bangalore, where the rental prices are high. Money still seems to be the most important factor for home buying but even then, the buyers are looking for larger homes with 2.5-BHK and 3-BHK specifications. The larger homes are more in demand owing to the requirement of a home office or a study. The paradigm shift in the demand patterns is confirmed by the realtors, brokers and the market watchers who report that there is a surge in demand of properties priced more than Rupees 1 Crore after the outbreak of the COVID pandemic. There was already a dip in the new launches which restricts the supply of larger luxury units and the higher demand for ready-to-move high-priced larger apartments would further exhaust the unsold inventory in the city.
The New Trend
The market watchers opine that of late there has been a sudden surge in the demand for larger apartments in Bangalore especially for the 3-BHK units. The demand noted has been in areas like Bellary Road, DS-MAX Sonata Nest, DS MAX Skyscape and also in places like Bannerghatta Road and Sarjapura Road. As work and study from home become the new norm, people are looking for homes with dedicated spaces for utilizing their homes as their offices or for online classes. Taking into account the new preferences of the home seekers the developers are also providing built-in workstations to meet the new requirements. The analysts remark unlike the earlier times when the most popular dimensions were 1200 to 1300 sq. ft., the newer preferences are of 1500 to 1600 sq. ft. The sales of such apartments priced above Rs. 2 Crores have gone up by 20% from the Pre-COVID times, says the statistical reports too.
The independent Homes too at the outskirts of the city has gained more traction as revealed by the report. As people long for more open spaces they have also started preferring independent homes more than apartments. Working remotely, social distancing and spacious homes have permitted people to work from a home situated at a distance away from the urban limits which has necessitated them to look for homes at the outskirts but with larger spaces. This has spurred the demand for housing in the peripheral areas of Bangalore like Byappanahalli, Bommanahalli, Devanahalli and Gottigere. Even the demand for rental accommodation in these areas has surged to significant levels as the landlords and homeowners say the queries for rental accommodation have increased from the period of February 2020 to June 2020.