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Will offices move out city centres?

From Walk-to-Work to Work-from-Home

Pandemic forcing buyers away from main cities

Wait, offices may move close to your homes, ANAROCK’s Anuj Puri forecasts

MUMBAI, June 17 (The CONNECT) - In the post-pandemic world, the city peripherals areas are front and centre on the radars of homebuyers. Supply lost no time in chasing demand – latest ANAROCK data reveals that as much as 58% of about 1.49 lakh homes launched in FY21 are in the leading 7 cities’ peripheries.

In FY19, the share of new launches in the peripheral locations was approximately 51% of about 2.29 lakh home launched in these cities.

In FY20, more than 2.07 lakh new units hit these markets and the peripheral areas accounted for a 53% share.

Among these cities, Pune saw the most launches in its peripheral areas – 76% of 29,950 units launched in FY21 – led by Mulshi, Pirangut, Daund, Chakan, Chikhali, Kamshet, and Undri.

 

 

 

Anuj Puri, Chairman – ANAROCK Property Consultants says, “Homebuyer preferences changed perceptibly post the pandemic. The previous ‘walk-to-work’ concept no longer led home buying decisions – instead, bigger and more affordable properties in greener, less polluted areas found favour, driven by work-from-home and e-schooling compulsions as well as safety concerns. Developers quickly changed track and those with landbanks in the peripheries, and even otherwise, saw it an opportune time to launch new projects there.”

New developments in the peripheries reduce the stress on the choked city-centres, and they become increasingly viable with ongoing infrastructure projects such as Metros and ring roads which will boost their connectivity to the city centres.

“It is very likely that some of the major office occupiers will soon de-centralize and bring their offices closer to their employees’ homes in these peripheries,” says Puri.

Many peripheral micro-markets where demand remained muted before the pandemic are now seeing renewed demand and supply. The previous desire to live in city centres - closer to workspaces, children’s school, etc. - has reduced markedly with the advent of WFH and e-schooling options in the post-pandemic world. People now prefer to live in bigger, open and green spaces in peripheries and that too at affordable rates.

Unsurprisingly, new supply housing in these cities’ key peripheral micro-markets rose markedly between April 2020 to March 2021.

In Pune, newly-launched supply in the peripheries was 76% of the total of 29,950 units launched in FY21. Among these areas are Mulshi, Pirangut, Ravet, Chakan, Chikhali, Wadgaon Budruk, Talegaon Dabhade, Dhanori, Punawale, and Undri. In FY19, their share of new launches was 67% of about 39,210 units launched then.

In MMR, the share of new launches in the peripheries was about 67% of a total of 34,620 launched units in FY21. In FY19, the ratio of new launches between peripheries and city centres was 60:40. Prominent outlying locations with high demand and supply include Panvel, Palghar, Visai, Virar, Kalyan, Badlapur, Bhiwandi, and Dombivli.

In NCR, close to 19,090 units were launched in FY21, of which at least 57% were in the peripheral areas such as Sohna, Sohna Road, Greater Noida West, and Yamuna Expressway. In FY19, the peripheral supply share was 49% of a total of 29,500 units launched then.

In Chennai, the share of new launch units in the peripheries was 54% of a total of 10,110 units launched in FY21. Some of the prominent areas with new project launches during the period include Poonamallee, Avadi, Vandalur, Sholinagnallur, Guduvanchery, and Chengalpattu. In FY19, the peripheral supply share was 44% of the total 16,130 units launched then.

Bangalore saw approx. 20,520 units launched in FY21, of which 46% was in the city peripheries. In FY19, the peripheral supply share was 37% of a total of 36,620 units launched. The prominent peripheral locations include Chandapura-Anekal Road, Chandapura, Sarjapura, Yelahanaka, Devanahalli, and Sarjapur-Attibele Road.

In Hyderabad, approx. 30,340 units were launched in FY21, of which at least 45% were in peripheral areas such as Medchal, Miyapur, Nizampet, Shamshabad, Kokapet, Patancheru, and Tellapur. In FY19, the peripheral supply share was 35% of total 18,460 units launched then.

In Kolkata, the share of new launches in peripheral locations was the lowest among the top 7 cities – just 26% of a total of 4,250 units launched in FY21. In FY19, the ratio of new launches between peripheries and city centres was 20:80. Prominent peripheral locations with high demand and supply include Barasat, Barrackpore, Serampore, Garia, and Howrah.

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