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COVID, WFH impact: Housing demand in suburbs of major cities seen rising

COVID, WFH impact: Housing demand in suburbs of major cities seen rising

COVID, WFH impact: Housing demand in suburbs of major cities seen rising
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By Ankit Gohel  Nov 17, 2020 4:42:15 PM IST (Updated)

The COVID-19 pandemic has brought a slew of changes into the lives of people and one of them seems to be the preference in buying a home. With the ‘Work from Home’ culture becoming the new normal, the potential homebuyers are preferring spacious homes at locations that are less populated.

The COVID-19 pandemic has brought a slew of changes into the lives of people and one of them seems to be the preference in buying a home. With the ‘Work from Home’ culture becoming the new normal, the potential homebuyers are preferring spacious homes at locations that are less populated.

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Some companies have even given their employees a permanent WFH option, while others have extended it to mid-2021. A home office, previously considered a luxury or even completely unnecessary, is now becoming an important feature.
Earlier, proximity to the workplace took the topmost spot among homebuyers’ considerations. But ever since the Covid-19 outbreak triggered the new normal and work from home became the norm, the demand in areas other than the ones located near IT hubs has been increasing, data from online real estate platform NoBroker.com suggested.
Homebuyers are looking to buy properties that are not only more spacious but also located in less populated areas, irrespective of their distance from the workplace.
The previous 'gold standard' of Indian housing - the walk-to-work / short drive to work, by definition only in and around central corporate workplace hubs – seems to shed some its popularity for the middle class.
This trend is reflected in the fact that in Bangalore, localities such as Whitefield, Marathahalli, HSR Layout, and Electronic city which were high in demand pre-Covid have experienced a decrease. Conversely, new localities that are attracting greater interest from homebuyers post May 2020 include Horamavu (32%), Yelahanka (56%), RT Nagar (42%), and Hebbal (36%), according to the report.
Currently, space is a bigger concern for working-class couples as they need a home that can accommodate two workstations along with a study room for kids. The prices in areas that are not strategically located around IT hubs are more affordable and living conditions are better as they experience less traffic. The NoBroker portal has registered a growing demand for bigger houses like 3 and 4 BHKs.
A similar pattern is being observed in Chennai as well. The platform has received more queries for localities such as Ambattur (46%), Perambur (105%), Kolathur (77%), Mylapore (31%) and Valasaravakkam (26%) in Chennai. Only a few months ago, the more popular and in demand areas were Velachery, Madipakkam, Pallikaranai, Porur, and Choolaimedu.
The data at the platform also indicated a similar trend in Hyderabad where areas such as Malkajgiri (26%), Kothapet (18%), Nagole (19%), Toli Chowki (9%) and Ramachandra Puram (12%) are more in demand than ever before.
“This is a good change as it has helped price correction in a couple of localities and people do not have to compromise on space, size and locality in order to stay close to their workplace. It gives builders also a good opportunity to build and develop more areas and not fixate on areas around IT hubs only,” said Saurabh Garg, Cofounder and Chief Business Officer of NoBroker.com.
In Delhi-NCR, some of the regions that are experiencing a spike in demand in the post-pandemic landscape include Rohini (126%), Dwarka (73%), Vaishali (69%), Okhla (53%), and Indirapuram (53%).
In Pune, the regions that homebuyers are showing keener interest in include Baner (28%), Ambegaon BK (16%), Wadgaon Sheri (31%), Hinjewadi (68%), and Wagholi (25%).
Garg believes that this change is bringing people closer to buying a house.
Meanwhile, a report from ANAROCK Property Consultants said that apart from changing real estate consumer preferences in a strengthening WFH environment, affordability is an enduring concern especially to the backdrop of a faltering economy and job loss/uncertainty. The peripheral areas are more affordable both from a rental and purchase perspective.
In MMR, the average price for a standard 1,000 sq. ft. property in areas within city limits is approx. Rs 1.85 crore, against Rs 55.35 lakh in the peripheral areas – a 70 percent cost difference, as per ANAROCK.
Micro-markets within city limits considered include Andheri, Vile Parle, Goregaon, Malad, Kandivali, Chembur, Wadala, Ghatkopar, Vikhroli, Powai, Mulund, etc. Peripheral areas include Kalyan, Bhiwandi, Dombivli, Mira Road, Vasai, Virar, Thane beyond Kasarvadavali and Owale Panvel, Ulwe, Taloja, etc.
The average monthly rent for a standard 2BHK home in areas within city limits is approx. Rs 45,800, against Rs 12,500 in the peripheries.
In NCR, the average price for a standard 1,000 sq. ft. property in areas within city limits is approx. Rs 88.20 lakh, against Rs 37.50 lakh in the peripheral areas – a 57 percent cost difference.
Micro-markets within city limits considered include Vaishali, Vasundhara, Indirapuram, Noida, Golf Course Ext. Road, Sushant Lok, Dwarka Expressway, New Gurgaon, Dwarka, etc. Peripheral areas include Ghaziabad-Rajnagar Extension, Faridabad, Greater Noida, Sohna, Bhiwadi, Bahadurgarh, etc.
The average monthly rent for a standard 2BHK home in areas within city limits is approx. Rs 22,000, against Rs 9,500 in the peripheries.
In Bengaluru, the average price for a standard 1,000 sq. ft. property in areas within city limits is approx. Rs 69.80 lakh, against Rs 43.50 lakh in the peripheral areas – a 38 percent cost difference.
Micro-markets within city limits considered include Sarjapur Road, HSR Layout, Kudlu Gate, Singasandra, Hebbal, Jakkur, Yeswanthpur, Jalahalli, Whitefield, Marathahalli, KR Puram, J P Nagar, BTM, Jayanagar, Banashankari, Kodigehalli, etc. Peripheral areas include Attibele, Electronic City, Yelahanka, Doddaballapura Road, Varthur, Budigere Cross, Kanakapura Road, Tumkur Road, Mysore Road, Kogilu Cross and International Airport Road (Bellary Road).
The average monthly rental for a standard 2BHK home in areas within city limits is approx. Rs 18,500, against Rs 9,500 in the peripheries.
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