The last decade has been tumultuous, to say the least for the housing market in India. Demonetization, RERA, and GST have drastically altered how the sector functions. It has changed the way developers are creating properties and also buying patterns. Old favorite habits have given way to new ideas and fresh perspectives on investments into housing markets by investors and end-users.
Over the last decade, there have been significant developments and changes in the housing market in India. A few are detailed below
Rise of Non-metros
The developers have moved from traditional markets of Mumbai, Delhi NCR, and Bangalore to other cities like Pune, Hyderabad, and Coimbatore. The availability of disposable income has also led many home buyers to invest in their own hometowns instead of purchasing expensive homes in metros. Multi-national companies have also moved to set up operations in non-metro cities thus pulling the crowd to these cities and raising the demand for quality homes.
In the last decade, developers have established a clear market segmentation of home buyers ranging from premium buyers to affordable buyers. Today there is something available for every budget. This increase in mixed supply has also brought out more buyers into the market thus improving the sales. In a single property, developers are offering a range of prices and sizes for homebuyers to consider. The government has also mandated the need to have different ranges of homes starting from 1BHK in all large property developments thus giving the opportunity to all buyers to invest in good development.
Homes are no longer just the unit that you purchase. The past decade developers have created communities with a range of facilities. Rentals also in such communities are higher than the rentals in an apartment development that has no facilities. There are even special wings now created for senior citizens and targeted amenities for them.
More Second Homes
The availability of disposable income has encouraged people to purchase a second home. Even if it isn’t for a rental purpose, a second home is being considered in locations that are popular for vacations. Hill stations and beachside homes are the preferred ones for those investing in a vacation home property.
Rise of property management companies
Investment in homes for rent has changed vastly in the past decade. Investors need not worry about managing their investments anymore as property management companies take care of all the details in short term and long-term leases thus making it stress-free for the investor.
Online Home Purchase
The past decade has added more online home buying/selling firms. The e-commerce route has today become the omnichannel for developers, investors, and end-users to buy and sell homes. It has opened up the market to a larger audience, including NRI investors. All big developers today are active on these platforms and have dedicated a significant portion of their budget for marketing properties on these e-commerce platforms.
Millennials buying pattern
Millennials have a significant mindset shift to investing in a home. The earlier generation looked upon homes a security, but millennials are viewing them from the point of view of investment. This has significantly changed the kind of properties that are getting a higher sale. They are calculating the future value of the property and research on the location before completing their purchase. Developers have begun to recognize and adapt their projects to this requirement.
The era of RERA
RERA has ushered in the age of information and transparency for the end-user. It has helped in improving confidence among buyers and also provided much-needed clarity on the property. Buying a home is a lifetime investment for many and with RERA there is increased confidence in buyers while making the purchase.