New Delhi: Over 74 per cent respondents expect an increase in housing demand, a survey by consultancy and professional services firm Deloitte India said.
The sample size of the survey was 50 CXOs across Industries in India. “According to our survey, 74 per cent respondents expected an increase in demand for the residential sub-sector… We believe this is due to emerging needs of owning a house in the current scenario to feel safe and secure,” Deloitte India said in a report ‘Reality of realty in a post-Covid-19 world’.
As much as 54 per cent respondents feel that demand will increase by up to 10 per cent, while 32 per cent see 10-20 per cent rise in demand and 14 per cent above 20 per cent.
“The residential sub-sector has been a prominent investment choice and is set to gain popularity in the coming future due to rising needs for security and safety. The realisation that almost every activity, i.e., work, learning, schooling, fitness, health can be performed from the comfort of one’s home, will help the residential real-estate sub-sector re-emerge as a popular investment choice amongst the masses,” the report said.
Vijay KR, Partner Deloitte India, said the real estate sector has picked up from where it left off with increased interests from individual buyers in residential real estate. “With lower interest rates playing its part, along with the government support, we are witnessing increased optimism in most sub-sectors,” he added.
The survey highlighted the impact of the Model Tenancy Act, 2021, in regulating the rental space and boosting interest in co-living spaces, but also showcased how buying residential properties seems to be at the forefront of emerging trends.
On other segments, the report said that commercial real estate is seeing green shoots while warehousing is an emerging sub-sector in the post Covid-19 world. Data centre business is in the spotlight led by an increase in data usage and regulatory changes, Deloitte said.
Commenting of the report, India Sotheby’s International Realty Managing Partner Samir Saran noted that luxury segment has been the biggest gainer in the rise of demand for residential properties as the Covid-19 pandemic effect wears off.
“Though the pent-up demand is fuelling a post-Covid real estate spurt, there is a need-based momentum too. With the work-from-anywhere culture is here to stay, HNIs, business people and professionals are scouting for spacious homes with all the necessary amenities within the house,” Saran said.
HNIs (High Networth Individuals) and Startup founders are buying luxury properties not only for self use, but also for investments as rental returns are now strengthening, he said.