BHUSHAN NEMLEKAR* writes Healthy and energy-efficient homes are also gaining traction amongst the new-age buyers
The covid-19 pandemic was a massive heat blow to the industry, where everything started displacing and changed the way homebuyers think now. The government of India along with the governments of respective States took several initiatives to encourage development in the sector. Their approach towards tackling the economy amidst the pandemic has been one of the finest. The various policy reforms along with the all-time low housing loan rates have given the much-required fillip to sales activity in the last few quarters for real estate sector. The industry was quick to respond to the changes and adjust to new advances in the past few months.
The pandemic has also contributed to the recent boom in home buying, in part due to the ability many employees now have to work from home and to health concerns, which encourages city dwellers mostly renters to look for more spacious residences in areas with lower population density.
One of the trends that really caught the eye of the developers was the demand for second homes. There is an inclination towards a healthy lifestyle that has been a catalyst in accelerating the demand for holiday homes or second homes. Consumers are willing to permanently shift their interest by considering their second homes as primary homes due to the new normal of WFH scenario and enhanced connectivity along with state-of-the-art amenities to rejuvenate and relax in tranquillity.
Homebuyers are also looking for bigger, greener properties in urban communities with proximity to their workplaces. Healthy and energy-efficient homes are also gaining traction amongst the new-age buyers. The historically low interest rate, the lucrative festive offers accompanied by flexible payment options and better consumer awareness made the festive season the best of the decade this year.
Outlook for 2022: The Indian housing market is expected to recover completely next year. The trend of demand remaining buoyant can be attributed to several factors like low-interest rates, an overall improvement in the job market, resumed economic activity, and an increasing desire to own physical assets during times of unprecedented uncertainty. With the vaccination drive gaining significant momentum and the spread of COVID-19 in better control, 2022 will very likely emerge better than before.
The residential sector has emerged as a major beneficiary this year which is likely to continue in the upcoming year. It will also be the year for developers to optimize cost, despite increasing input prices, in most segments of real estate development and to ensure buyers’ affordability of owning a home. (*The author is Director, Sumit Woods Limited)