The COVID-19 pandemic has fundamentally altered the way homebuyers assume of their dwellings. Consumer behavior has changed drastically, major to a structural shift in the manner they look at how to live and exactly where to live, like their sentiment towards home ownership. Cocooned in the comfort of their houses throughout the rigorous lockdown has led numerous to re-evaluate their priorities and cherish the sense of safety that comes with owning a home.
In view of this, Knight Frank has come out with its Global Buyer Survey, which analyses the effect that Covid-19 has had on residential buyers’ attitudes to acquiring houses about the world.
As per the report, 19% of persons globally have moved to a new home due to the fact the start off of the pandemic this rises to 25% in Australasia and North America. Of the non-movers, 20% are more inclined to move in 2021 even as the pandemic continues.
In the Indian edition of the survey, 26% of Mainstream Indians had moved their residences inside the pandemic period. These relocations have been motivated by components like want of more open space and proximity to close friends and family. For Indian Mainstream non-movers, 32% have been more inclined to move residences in the next 12 months. An overwhelming 87% of the respondents who wish to move houses in the next 12 months, favoured the suburban neighbourhood of their existing city of residence, even though 13% of respondents who want to relocate, could take into account an alternate city.
WILLINGNESS TO RELOCATE IN THE NEXT 12 MONTHS AS A Outcome OF THE PANDEMIC
Globally, 64% of the respondents count on the worth of their major residence to raise in the next 12 months. In case of the Global Indian segment, which represents the greater earnings segment, 32% count on rates to rise. Reflecting a more optimistic outlook, 61% respondents in the Mainstream Indian segment count on rates of their major residences to rise in the next 12 months.
32% of the respondents from the Mainstream Indian segment expressed willingness to move into a new home in the next 12 months as a outcome of the pandemic, whereas 14% from the Global Indian segment indicated a wish for relocation. In a cost-sensitive atmosphere, more than 50% across all earnings segments in India cited lack of willingness to spend a premium for branded residences. Marking a substantial citation, 32% of the Global Indian segment expressed willingness to spend a premium for a greener home.
The report emphasizes that future of work will play a substantial aspect not only for the industrial sector but also for the residential. More than half of the respondents in the Mainstream Indian segment count on to be back in workplace for the complete work week when all restrictions are lifted. 47% of the Global Indian segment respondents count on to continue working for 2-4 days in a week from workplace when all restrictions are lifted. In the Mainstream Indian Segment, the highest inclination towards 5 days of work from workplace was shown by experts i.e. lawyers, architects, physicians, chartered accountants and so forth. In case of the salaried class segment, the preference for work from workplace ranged from 3 to 5 days. This is largely due to the effect of tech firm workers working from home.
Globally, 59% of respondents envisage working 3-5 days in a week from workplace when all restrictions are lifted. In the Middle East and Asia, the figure is 41% and 36%, respectively.
Commenting on the exact same, Shishir Baijal, Chairman & Managing Director, Knight Frank India, mentioned, “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 added, “The pandemic has changed the outlook towards ownership of homes right across the different income strata in India. Our Buyer Survey confirms that across the spectrum of Indian homebuyers, 32% showed interest in relocating from their pre-pandemic homes. It is observed that apart from the spending propensity and house type that typically govern an Indian home buyer’s purchase decision, factors such as access to open green spaces, healthcare and proximity to workplace have also started playing an important role. Energy efficient homes are also gaining traction as the concept is finding preference amongst home buyers in India.”
Optimistic outlook for cost appreciation in major residences
Globally, more than two-thirds of respondents count on the worth of their existing home to raise in the next year with most expecting a rise among 1% and 9% more than the 12-month period. This coincides with Knight Frank’s Prime Global Forecast Index which highlights that home rates on typical, are probably to raise by 4% in 2021 globally.
From India’s context, there is more buoyancy in sentiment from the Mainstream Indian segment than the Global Indian segment. Nearly 58% respondents in Mumbai and Kolkata anticipated up to 10% raise in residential rates, even though 53% in Pune also have a comparable expectation. More than 60% respondents in Southern cities count on up to 20% cost raise in next 12 months. Around 19% respondents in Bengaluru and 18% in Chennai anticipated rates to raise 20% or more in the next 12 months.
From the worldwide aspect, due to the fact the advent of the pandemic, as numerous as 19% of respondents relocated to a new home. The Global Indian segment, nevertheless, remained cautious of relocating throughout the pandemic, with only 7% getting moved to a new home in the previous 12 months. In contrast, almost 26% of respondents in the Mainstream Indian Segment made the move to relocate in the exact same period.
Sharing particulars on the spending propensity to invest in a new home, the report cited that 38% respondents from the Mainstream Indian segment indicated an raise in budgetary allocation towards residential buy. More than half of the Global Indian segment respondents indicated no modify.
The attitudes of the Mainstream Indian segment purchasers in South India are relatively optimistic when it comes to spending propensity for acquiring new houses. 63% in Chennai, 54% in Hyderabad and 39% in Bengaluru have indicated an raise in spending propensity.