With the new culture of work-from-home and online education post Covid, there has been an increased need for larger homes, especially for families with working couples. As per Knight Frank India, about 83% of sales concentrated in Mumbai in the up to 1,000 sq. ft housing segment, indicating the continuing demand for larger homes in 2021. The up to 500 sq. ft segment contributed to 42% of the total registrations in 2021, followed by 500-1,000 sq. ft, which accounted for 41%. The 1,000-2,000 sq. ft segment contributed 13% of housing sales.
Highlighting the trend, Navin Makhija - Managing Director, The Wadhwa Group said, "The world resurrecting to the pandemic of Covid-19 has made people realized the importance of a well-planned, well-designed, and well-ventilated home during the pandemic more than ever before. There is an increase in demand for larger homes with the prevalent work-from-home culture and families spending more personal time at home, wherein the units with extra space/study room/decks emerged as the best-performing category. People now want to have a separate place inside the house for various tasks such as office work, online schooling and recreational activities. Demand for larger homes has risen ever since the pandemic where people can relax and work while with keeping themselves fit and enjoy life with their loved ones in new ways. Developers too are gearing up for this new trend and conceptualizing their product in innovative ways to meet the consumer demand. For first-time buyers who are moving from rental accommodation to owning but still want in the middle of the city are preferring spacious 1&2 bhks and additional study room / balcony is an added advantage."
Reiterating the same, Pritam Chivukula - Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI said, "The increased affordability together with the pandemic encouraged the need for bigger homes which fueled rapid increase in the potential home buyers in the Mumbai region. The market experienced an increased demand for two and three BHK homes in the city in the year 2021. The pandemic has brought forth the concept of “work from home” in a larger way thereby highlighting the need for larger homes with planned spaces. With the home loan interest rates at an all-time low, the gap between rents and EMI too diminished considerably. This has led to the transition from rented to owned apartments. The next largest segment is the “upgrade” set of buyers who have understood and accepted the need for larger living spaces. Projects which offer larger open and green spaces along with lifestyle amenities also saw a better demand and it will only continue going forward."
According to Anarock Property Consultants, in the past two years, demand has been skewed towards homes that are large enough to accommodate the new WFH and e-schooling realities. The average sizes of new unit launches have risen by 26 per cent.
There was a high demand for larger houses and as a result, mid-segment (units priced between Rs 40 lakh-Rs 80 lakh) and high-end (units priced between Rs 80 lakh- Rs 1.5 crore) did well. Altogether, around 65 per cent of the supply between January-September came in these segments.
Commenting from the demand perspective, Sandeep Runwal, President, NAREDCO Maharashtra and Managing Director, Runwal Group said, "Owing to the pandemic, homebuyers have grasped the significance of living in larger homes that offer healthy lifestyle amenities, safe and secured environment. There is a clear trend of demand for mid-size and larger homes by the current Mumbai home buyer. Initially, this trend was ascribed to the stamp duty exemption accorded by the Maharashtra Government. However, the fact that this direction has continued despite the State Government withdrawing the stamp duty concession points to its longevity and permanence. Apart from the low-interest rates, the consumers' realization of owning a home along with key policy measures has been the growth drivers for the real estate sector in the past year. Additionally, work from home and school from home policy has increased the demand for larger homes and we expect this strong demand to continue this year as well."
The Anarock report highlighted that the luxury and ultra-luxury segment fared well as the net worth of the target group for luxury offerings was not severely impacted by the Covid-19 pandemic. These buyers pro-actively closed deals to take advantage of market conditions.
