COVID-19 impact: More Indians keen to shift homes to suburban neighbourhood

                
More Indians are looking to shift their homes to suburban neighbourhoods owing to their learnings from the Covid19 pandemic. Around 87% of total 558 respondents who desire to 
move homes in the next 12 months, favoured the suburban neighbourhood of their current city of residence, while 13% of respondents who want to relocate, may consider an alternate 
city, showed a Knight Frank India survey.

According to this survey, 26% of mainstream (mid-income) Indians had moved their residences within the pandemic period. These relocations were motivated by factors like wanting 
more open space and proximity to friends and family. For Indian Mainstream non-movers, 32% were more inclined to move residences in the next 12 months.

Globally, 64% of the respondents expect the value of their primary residence to increase in the next 12 months. In the case of the Global Indian segment, which represents the higher 
income segment, 32% expect prices to rise. Reflecting a more optimistic outlook, 61% respondents in the Mainstream Indian segment expect prices of their primary residences to rise 
in the next 12 months.

“The pandemic has changed the outlook towards ownership of homes. Globally, two trends have stood out in the last few months. Firstly, a growing ambivalence of some buyers when 
it comes to location, provided they can secure a co-primary home that delivers the lifestyle and enjoyment they feel they’ve missed out on. And, secondly given low savings rates and 
frothy stock markets, buyers are taking a more defensive stance by rebalancing their portfolios with a greater focus on tangible assets such as property,” Shishir Baijal, CMD, Knight 
Frank India.

Around 32% of the respondents from the mainstream Indian segment expressed willingness to move into a new home in the next 12 months as a result of the pandemic, whereas 14% 
from the Global Indian segment indicated a desire for relocation. 

In a price sensitive environment, more than 50% across all income segments in India cited lack of willingness to pay a premium for branded residences.

Marking a significant citation, 32% of the Global Indian segment expressed willingness to pay a premium for a greener home.

Globally, over two-thirds of total 900 respondents expect the value of their current home to increase in the next year with most expecting a rise between 1% and 9% over the 12-month 
period.

“Besides economic fundamentals, the home buyer psychology is also seen as an influential element in formulating the home price dynamics. There is an optimistic expression from 
global home buyers in terms of expecting an incremental value in the prime residential asset class in the next one year. We believe residential demand will strengthen and we expect 
market fundamentals to gain prominence in bringing an equilibrium in real estate economics which got impacted by the fury of the pandemic last year,” said

Kate Everett-Allen, Head of International Residential Research at Knight Frank.

Around 61% homebuyers in India’s mid-income segment expect residential prices to increase in the next 12 months.Nearly 58% respondents in Mumbai and Kolkata expected up to 
10% increase in residential prices, while 53% in Pune also had a similar expectation. 

More than 60% respondents in Southern cities expect up to 20% price increase in the next 12 months. Around 19% respondents in Bengaluru and 18% in Chennai expected prices to 
increase 20% or more in the next 12 months. The survey findings emphasize that the future of work will play a significant part not only for the commercial sector but also for the 
residential. More than half of the respondents in the mainstream Indian segment expect to be back in office for the entire work week once all restrictions are lifted.

Around 47% of the Global Indian segment respondents expect to continue working for 2-4 days in a week from office once all restrictions are lifted. In the Mainstream Indian Segment, 
the highest inclination towards 5 days of work from office was shown by professionals i.e. lawyers, architects, doctors, chartered accountants etc. In case of the salaried class 
segment, the preference for work from the office ranged from 3 to 5 days. This is largely due to the impact of tech-firm employees working from home.

Globally, 59% of respondents envisage working 3-5 days in a week from office once all restrictions are lifted. In the Middle East and Asia, the figure is 41% and 36% respectively.

Source: The Economic Times