The COVID-19 era is transforming the real estate market as preferences for the accommodation of people are changing with the new working culture coming into effect. With work-from-home(WFH) people will see the most viable option for residential purposes and also many future homebuyers will shift to city peripherals areas for bigger homes and a better lifestyle at a more affordable price.
With the rise of Work-From-Home (WFH), the ‘walk-to-work’ concept may lose some sheen and prospective homebuyers will see sense in shifting to city peripheries, among many trends.
The previous ‘gold standard’ of Indian housing – the walk-to-work/ short drive to work, by definition only in and around central corporate workplace hubs – may shed some of its popularity for the middle class.
“The work-from-home concept may become the next prop for home-buying decisions, where the walk-to-work option had held the longest sway.
With the rise of the WFH culture, many may now prefer to live in more spacious and cost-effective homes in less central areas. While sufficient supply currently exists in most of the peripheries, this new demand will eventually also dictate fresh supply. Bigger homes, affordable prices and more generous open spaces in the peripheral areas will draw demand from tenants and buyers alike.
Affordability and Price Quotient
Apart from changing real estate consumer preferences in a strengthening WFH environment, affordability is an enduring concern especially to the backdrop of a feeble economy and job loss/uncertainty. The peripheral areas are more affordable both from a rental and purchase perspective.
The cost analysis of real estate difference for NCR, are as follows:
In NCR, the average price for a standard 1,000 sq. ft. property in areas within city limits is approx. Rs 88.00 lakh, against Rs 33.00 lakh in the peripheral areas – a 58.75 percent cost difference. Micro-markets within city limits considered include Vaishali, Vasundhara, Indirapuram, Noida, Golf Course Ext. Road, Sushant Lok, Dwarka Expressway, New Gurgaon, Dwarka, etc. Peripheral areas include Ghaziabad-Rajnagar Extension, Faridabad, Greater Noida, Sohna, Bhiwadi, Bahadurgarh, etc. The average monthly rent for a standard 2BHK home in areas within city limits is approx. Rs 22,000, against Rs 8,000 in the peripheries.