COVID-19 Impact: Homebuyers Looking for Larger Apartment

As we know due to COVID-19 people are not shifting to bigger houses and demand for ready to move houses has shown a positive shift in recent months. With the outbreak of the virus all around the world, many changes have been made and seen around us as well. One of such major change is work from home culture and online schooling as well as classes. With numerous organizations permitting work from home (WFH) to countless workers, in the scenery of the continuous COVID-19 pandemic individuals are presently searching for open houses bringing about expanded interest for moderately larger apartment. The new interest design is driven by homebuyers’ have to oblige space for remote working.

A joint review on purchaser assumption by self-administrative body National Real Estate Development Council (NAREDCO) and real estate portal Housing.com showed that over 40% of purchasers are hoping to enhance their homes. Due to this reason, there is a decrease in the interest of 1 BHK apartments.

As per the most recent update on real estate news, over these recent couples of months, enquiries for bigger homes in Bengaluru have expanded up to 40% with property searchers prevalently exploring for 3 BHK Apartments with normal 1,800 sq ft developed region as against the beforehand favored 2 BHK Flats. In cities like Mumbai as well people are trying to upgrade their houses from 1 BHK to 2 BHK.

Numerous organizations permitted WFH because of the lockdown yet are presently wanting to proceed with it. Thus, individuals are presently hoping to cut out an office space into their homes. For around the previous half-year, a great many people have been working from their home space. This has brought about a longing for extra space where one can focus on work.

Moreover, families with children are also looking for extra room as students need some privacy while attending online classes. Content creators, influences, and creative personnel also need a huge amount of concentration for their work which can only be provided through non-disturbance.

Another impact of COVID-19 on housing demand is that due to the availability of world class facilities and open spaces around new homes, the demand for new houses relative to those on resale has increased.

For those working from home, traveling is no longer a concern, which has eliminated the need to move a house closer to the workplace. As a result, for greater affordability, individuals are more open to moving to peripheral areas.

It has been seen that With certain individuals moving to the places where they grew up because of WFH, the interest in tier II and tier III urban areas has gone up. In Punjab, demand for property in Mohali, Ludhiana, Amritsar, etc has been expected to rise as well.

Another reason behind the demand for larger apartment is that the Reserve Bank of India (RBI) has reduced the repo rate on several occasions in the recent past, resulting in interest rates declining to 7 percent for home loans. Now, from that point of view, if the necessary margin cash is available to aspire homebuyers, they should not try to let go of these record low prices.

With the easy availability of home loan at less rate of interest, the decision of moving to another house which offers them more space is very easy to make for potential buyers.

In India, homebuyers typically start their home ownership experience with small new houses with the intention of upgrading at a later stage to a larger apartment. When affordability increases, these upgrade decisions are normally made. According to property brokers, the current record low home loan rates, enticing festive season discounts, and developer deals are leading many of them to take the decision with secure finances.

If you want to know more about home loans, interest rates on loans, etc then you can read our other article ‘how to get the best home loan deals right now?’

Besides that, In the present circumstance, consumers prefer developers that have a credible track record. There is a certain change in homebuyers’ enquiries to trustworthy developers such as SBP Group after the recent implication of Real Estate Regulatory Authority 2016 (RERA)  and Goods and Services Tax (GST). Also during the lockdown, developers with a strong track record reported notable sales are given preference by customers.

Buying a home is a very big financial and emotional decision. Considering the sudden outbreak of coronavirus and changes in work culture and home environment and rise in some basic facilities, everything has contributed to larger apartment surge. The current buyers are mainly working couples with children, most of whom are currently exploring options for WFH and e-learning.

Their budgets have not risen in many situations previously, but now with the government’s efforts and developer’s offers, they are even willing to settle for peripheral locations to obtain larger apartment and a better lifestyle at a more affordable price.

In peripheral locations, new projects which are being launched are taking good advantage of it and are offering ample space in rooms as well in parking space as well and with their top notch amenities and safe neighborhood.

Our advice to you is that one of the greatest purchases in one’s lifetime is a home, so it’s important to be cautious. To determine whether WFH would be long term for you and decide accordingly, be aware of the activities followed by employers in your sector. Invest smart and invest with a good developer, so that you can feel secure in every way.

For any more information, you can check out our other blogs, or if you are interested in buying an apartment you can visit our website to know detail about our projects or connect with us on our social media pages.