The world has changed post-pandemic and so has home-buying wisdom. Let us take you through the fact-based industry trends as you read through them.
MYTH: The middle-class segment does not invest in second homes
Until the pandemic, the belief was that only luxury prospects could afford a second home. The logic behind this myth was that only those who inherit family property can afford to buy a home in their lifetime and move on adding a second home to the family’s assets.
Fact: According to Knight Frank’s India Buyers Survey, 37 per cent of the country’s middle class is planning to buy a second home this year against 40 per cent of High-Net-Worth Individuals (HNWIs) who intend to buy second homes. It is proven that the middle class is as keen as HNWIs to buy second homes. This trend further gained strength when families felt they needed a haven to escape during the pandemic. The pandemic created a need for families to coexist, work and play under one roof and owning a second home became a serious consideration.
MYTH: Buyers are not tech-savvy
Indian buyers still rely heavily on physical meetings with a real estate agent to buy a home.
Fact: A recent survey reveals that nearly 60 per cent of Indians have shifted their house-hunting process to the online medium. From property search, documentation processes and legal advice to pay down payment, home buyers are taking the advantage of the new tidal wave of digital technology driving the Indian housing sector.
MYTH: Indians are not risk-takers
The average Indian home or plot buyer doesn’t buy or sell when the economy is unstable; they make the transaction only when there is no risk involved.
Fact:
10 million Indians lost their jobs and 97 per cent of households saw income reduction during the second wave. Despite this, many real estate consultants saw that the number of housing units sold in the first six months of 2021 was 67 per cent higher than in the first six months of 2020. Developers also upped the ante by launching new projects to capitalise on the improving sentiment, despite a significant rise in the cost of input materials such as cement and steel. Strikingly, there was a comparatively lesser impact on development activity during the second wave as the exodus of labour was better managed with developers arranging their accommodation on site.
MYTH: Green homes are not popular among buyers
It’s a belief that compared to their foreign equivalent, Indians are less inclined towards eco-friendly homes because the higher construction costs linked to green materials, design, and building techniques increase the cost of the home.
Fact: Industry insiders feel this is not the case anymore. Home buyers have responded favourably to projects with sustainability features, thus suggesting higher consumer awareness towards the benefits of certified, environment-conscious aspects that translate into reduced maintenance costs. A growing number of consumers are seeking green homes as they are realising the benefits attached to them. One of the greatest benefits of green buildings is their lower maintenance costs – featuring specially-engineered design elements that help reduce energy and water bills. Besides, the cost-saving benefits of sustainable construction are unparalleled in the long-term.
