Homebuyers’ perceptions about their dwellings have been fundamentally altered due to the Covid-19 pandemic. There has been a significant change in consumer behaviour, leading to a structural shift like how they look at place and way of living, including their homeownership sentiment. Staying in the comforts of their homes during the stringent lockdown has led many to re-think their priorities and nurture the sense of security that comes with owning a home.
Keeping this in view, a leading property consultancy, Knight Frank conducted a Global Buyer Survey that analyses how the Covid-19 pandemic has impacted the residential buyers’ attitudes while purchasing homes around the world.
Released on August 25, the survey reveals that more than 60% of Indian middle-income homebuyers anticipate the prices of their primary residences to increase within the next year. Wherein about 30% of respondents in the survey expect a rise of up to 9% in their primary residences, 25% hope a hike by 10% to 19%. A tiny 6% feels the rates will increase by over 20%.
The report by Knight Frank notes 19% of respondents globally have moved to a new house since the beginning of the pandemic, 25% contributing to Australasia and North America. 20% out of the non-movers are more intended to shift in 2021 despite the ongoing pandemic.
Knight Frank conducted a two-part primary survey for India, with over 550 people. The first part consists of respondents in the high-end income segment, referred to as the ‘Global Indian Segment’. The second part gauged buyer sentiment in the mid-end income segment referred to as the ‘Mainstream Indian Segment’.
In the Indian edition of the survey, around 26% of the Mainstream Indians had changed their residences during the pandemic. The possible reasons behind these relocations are more open space and proximity to friends and family. 32% of non-movers will occupy residences in the coming 12 months. Around 87% of the respondents, who have shown interest in changing their residence by the next year, have chosen the suburban neighbourhood of their current city of residence. 13% of respondents who wish to relocate, may pick an alternative city.
Due to the pandemic, 32% of people from the Mainstream Indian segment expressed willingness to move into a new home in the next 12 months, while 14% from the Global Indian segment desired to relocate. However, over 50% across all income segments in India do not wish to pay a huge price for branded residences. Flagging a significant citation, 32% people of the Global Indian segment are willing to pay a premium for a greener home.