The COVID-19 era presents a radically transformed real estate market, with preferences changing to accommodate new market realities. With the rise of Work from Home culture, homebuyers will be shifting to the city peripherals. Like- suburbs and tier 2 cities are likely to gather more interest if work from home becomes the norm in future. Though the future of the residential sector looks promising and will surely propel the growth of this sector in the coming years.
The work from home culture is changing the way we live. Moving to more spacious homes in the suburbs would make sense because commuting will not be required. With work-from-home a viable option even after the lockdown, many future homebuyers will shift to the peripheral areas for bigger homes and a better lifestyle – at more affordable prices.
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, says, “In the current pandemic situation, many people are staying away from the tier I cities. There will be a curtailment in the exodus from these cities and will lead to employment creation along with the movement of MNCs, which are already looking at cutting down on expenses. With job market sorted out after the movement of IT and BPO firms, the market here is seeing a steady demand of real estate. Many real estate developers are already present in tier II cities and peripheral areas due to the rising demand. Another reason for the residential markets in tier II cities performing better than tier I cities is the budget, which is affordable as compared to high property prices in metros and in the current situation it has become more lucrative as people will spend every penny prudently.