Demand for Spacious Homes Picks up Amid Covid Pandemic

The work-from-home (WFH) culture and e-learning traditions during Covid-19 have drastically influenced homebuyer’s preferences and the recent trends show an increased inclination of potential homebuyers towards larger 3BHK spaces even in emerging peripheral localities. According to data accessed by Prop Equity, sales of 3BHK housing units have increased by 19% on a year-on-year basis and as many as 30,169 3BHK units were sold in the first quarter of 2021 as against 25,307 units sold in the first half of 2020.

As per a study conducted by ANAROCK Consultants, NCR witnessed a 12% increase with 4988 units sold in Q1 2021 and 4433 units sold in Q1 2020. Pune saw a 34% increase in the sales of 3BHK units with 4171 units sold in Q1 2021 and 3107 units sold in Q1 2020. The data also showed the maximum sales of units at 53% with 2781 3BHK units being sold in MMR in the first quarter of 2020 and 4273 units in the first quarter of 2021. Chennai saw a 43% increase with sales of 2387 units in Q1 2021 and 1665 units in Q12020.

Commenting on the same, Pankaj Bansal, Director, M3M, said, “The residential real estate sector has always been a buyer’s market. The interest rates are at an all-time low and reduced property rates, health and wellness concerns and promise of an indulgent lifestyle have driven demand among the buyers who are now ready to settle in premium locations. Ready-to-move-in spaces in high rise apartments, gated townships and luxury towers in high growth corridors like Golf Course Road (Extn.) with excellent connectivity are now parts of a buyer’s wish list. The extended work-from-home culture and the e-learning period are likely to stay and people will continue to demand more spacious homes that incorporate dedicated study rooms, workspaces, and workout and entertainment zones with modern amenities that match their opulent lifestyle.”

Buyers are now looking for 3BHK homes considering the factors of affordability and financial feasibility across the topmost cities. During the pre-COVID period, the demand for 3BHK homes ranged between 25% and 30% as compared to the current range of 30% and 35%. As per PropTiger Data Labs, 15,998 units in the 3BHK category were sold in Q1 2020, which increased to 17,200 units in Q1 2021, clearly indicating that there was momentum in sales in this segment.

“Since the onset of the pandemic, there has been a shift in demand for bigger spaces across all segments. Anyone who can afford is looking to upgrade to bigger spaces given the fact that they are spending more time at home. The COVID-19 has reinforced the significance of spacious homes for comfortable living and also as a stable investment. The extended work from home will continue to nurture the buyers’ decision of purchasing a home,” said Karan Kumar, CMO, DLF Ltd.

He added, “Today more than ever, buyers are looking for bigger balconies, an extra bedroom or perhaps that half an extra room that could be converted into a study, a workouts pace, or a pooja room, or possibly a little more seating space within a bedroom where they can set up their own temporary workstations. The focus is also on multi-utility rooms. The pandemic has directed the demand for residential real estate moving beyond the metros, to micro markets, mini metros, as well as tier II and III cities. Buyers are now preferring homes in the peripheral areas of cities as they offer a bigger space at a more competitive price.”

As per a recent Anarock report, there has also been a sharp increase in demand for an additional ½ room for creating a mini office, study room, yoga, gym etc. As movement is now restricted due to COVID19, there is a rise in demand for 2.5 BHK and 3.5 BHK homes where the homebuyers are looking to convert the additional space as per their need and requirements.

“The Covid-19 pandemic has established the fact that there is no place like home and that owning your own space is more acceptable in contrast to living with insecurities in a rented house. A strong majority of the population would prefer a fully-equipped workspace, a dedicated area for fitness and related equipment, a private space for their weekend meetups, a play area for children while considering other important factors such as location, ticket size, thoughtful design, and cutting-edge technology, etc. This has led to disruption in the overall approach adopted by developers while considering it as an additional component in their product offering. Anticipating this trend at the beginning of 2021, we at Krisumi launched a new asset class 2LDK + personal workspace in our flagship project, Krisumi Waterfall Residences, Gurugram,” said Ashok Kapur, Chairman, Krisumi Corporation & Krishna Group.

The increased work-from-home and home-schooling culture is likely to stay, which is why increased queries for bigger spaces across the cities are taking effect in an increased ratio. The demand for bigger homes in peripheral locations along with a desire for a better lifestyle has amplified demand in the segment which is likely to continue throughout 2021.

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