Can You Afford To Take That Home Loan
The absolute lockdown imposed in March 2020 to arrest the spread of the pandemic introduced the work from home (WFH) culture and made it a major part of everyones lives.
Simultaneously, it motivated developers to capitalise on this emerging trend, amidst this new way of living.
NEW HOUSING CHOICES
Research suggests that 1 in 3 Indian employees will work remotely by 2022. That apart, a recent survey Indicated that around 95 percent of Indian companies were planning to adhere to remote working for the next two years, at least.
With the advent of WFH, residential real estate is a clear gainer, and this has resulted In Increased home buying. The millennials, who were previously averse to buying residential properties and preferred rental accommodations, are now appreciative of the advantages that come from owning a home. They are moving to the outskirts in search of bigger and affordable Iifestyle homes. It is also a smart Investment strategy, as a buyer saves around 35-60 per cent when they buy a property in peripheral location.
Consequently,the suburbs, as well as tier 2 and 3 cities, have been the gainers because this cost arbitrage has pushed the demand for housing at these locations. As for the units being sold, 2.5 BHK and 3.5 BHK homes are more in demand so that additional areas in these homes can be turned into workspaces.
BACK TO THE DRAWING BOARD
Since the pandemic, consumer demand has pushed developers to make design transformations in order to offer multi-functional layouts. Consumers are looking for more open spaces and effective ventilation to complement the wellness requirements of WFH In fact, within apartment complexes, some developers have also started to make provisions for business centres. Moreover, the demand for plotted developments, villas, now houses and independent foors Is on the rise for better social disgancing. To cash in on the buzz surrounding the WFH trend, developers are offering smaller plots of 1,500-2,000 sq. ft. because they sell faster than larger plots. Particularly, there is a high demand for plots in cities such as Bengaluru, Hyderabad, Chennai,Pune and Gurugram.
Interestingly, the badly hit luxury housing segment in the pre-Covid period is securing a foothold with buyers preferring larger homes for remote working. Furthermore, the budding workcation concept has also created the demand for holiday homes and homestays.
IN OFFICE MODE
Largely, experts belleve that WFH will stay as the preferred mode of work in 2021. Yet, at the same time, many feel that WFH will not entirely replace work from office. In addition to the essential services, some companies In the IT and FMCG sectors are asking their employees to work from the office albelt in a staggered manner thereby registering a positive impact on workspace demand in commercial real estate. The developer community is optimistic that a growth of 10 per cent GDP will lead to a rise in demand for commercial space.
FUTURE OF COMMERCIAL
Next, the stark reality, which cannot go unnoticed, is that WFH may result In reduced demand for office space in central business districts. Subsequently, there will be an increase in the demand for office space in suburbs and ther 2 and 3 citles, as BPOS and IT-enabled services prepare themselves to set up offices in smaller cities. Finally, specifically designed WFH spaces and affordable housing alongside the luxury segment will dominate the market in the post-Covid era. Social distancing norms will lead to developing contactless technology Theresfore, real estate business models will be supported by custom technological offerings for the discerning customers will continue to work remotely from the comfort and safety of their homes.
Source:Mumbai Mirror Sunday