Circa 2020. Month April. Most of the cities in the world are in government-imposed lockdowns. Kapil and Natasha live in a 2-bedroom house in suburban Mumbai. Both are working and have two kids.
Kapil and Natasha share one room that serves as a bedroom and their makeshift office. Their kids Rohan and Malvika share the other bedroom. The schools are closed, so they attend online classes conducted by their schoolteachers using their laptops.
But, this is getting extremely frustrating for the family as they feel their privacy is compromised. They need more space as they can’t move outside their compact apartment.
Before the pandemic, the family members lived a busy life and often came late at night. They used their two-bedroom apartment just for having dinner, sleeping and getting ready for their offices and schools the next morning. Pandemic changed everything. It altered our lifestyles and redefined our relationship with our homes.
However, the changed setup with many people stuffed into the confines of a home also caused inconvenience leading to small fights. It left people scrambling for more space and privacy. People started realizing that they need more privacy and functionality in their house. In the real estate market in India, this major shift in the mindset translated into a growing surge in demand for larger homes which continues to this day.
The Emergence of New Priorities
1. Work From Home and Online Learning
It was our first brush with the remote work culture that was approved by employers. Our kids attended online classes in front of their laptops and tablets. They needed designated spaces for uninterrupted study sessions. People converted their bedrooms into temporary offices, and dining tables into study areas. Within a few months, the real estate market reported an increased demand for larger homes with flexible layouts.
2. Focus On Well-Being and Wellness
During the pandemic, life looked like a house arrest as confinement within four walls became mentally taxing, leading to several physical and psychological issues. As human beings, we crave for outdoor spaces, fresh air and natural life. So, the homes with balconies, terraces, gardens, or proximity to green areas became highly sought after. People needed health and wellness amenities, gyms, parks, and tracks for jogging and walking – everything within their reach.
3. Need for Privacy and Security
Spending more time at home raises concerns about privacy and security. So, many home buyers now seek properties within gated communities. If it’s not the case, then, there should be extra security features such as CCTV surveillance and round the clock security to ensure unwanted elements can’t interrupt or take advantage of the situation.
The Desire For Convenience and Self-Sufficiency
The pandemic highlighted the importance of self-sufficient neighborhoods. One should have access to basic amenities like grocery stores, healthcare facilities, schools, and recreational centers within walking distance. It becomes even more crucial during an emergency.
Growing Preference for Home Ownership
“Anything that can go wrong will go wrong.” (Murphy’s Law)
Murphy’s Law becomes more pronounced when you lose a job or face a financial crisis. Rented accommodations can quickly become risky, as it’s not a black swan event anymore. As a homeowner, you can survive a financial crisis for a couple months using your savings and cutting corners in a budget. But the situation may soon get out of control, if you live in a rented flat and need to pay rent, EMIs and other bills
The Demand for Larger Homes
Increased Average Sizes
As per a recent survey, the average size of new apartments launched is consistently increasing across India’s leading cities.
The National Capital Region (NCR) leads the race with the biggest apartments & houses in the fray. Bangalore is also not far behind
The Rise of Three BHKs and Luxury Segments
According to a 2023 survey, almost half of the respondents expressed interest in 3 BHK apartments. So, we are in the middle of a major shift. This proves that demand for large flats is consistently increasing.
Builders are focusing on the luxury segment – so almost 23% of newly launched projects have luxury apartments.
Factors Influencing the Shift
There are many factors behind a major shift from small houses and apartments to large apartments. These factors include the growing culture of remote work, work from home arrangements and availability of affordable homes. With changing lifestyle preferences, people are looking for a higher standard of living with more comfort and convenience. Access to amenities is already on top of the list. The high-end properties have better & assured investment potential and in this volatile market, people are looking for stable investment options.
The Future Outlook
With increasing connectivity and government’s focus on infrastructure development, it is possible for people to live in spacious luxury apartments that have quick commuting access to the business districts and financial hubs. Development of integrated townships and connectivity through metro trains is a good step that minimizes the challenges like traffic congestion in areas with exorbitant property prices.
Final Words
A clear mindset shift has taken place in the past 5-6 years and the Indian middle class is moving from the smaller and cheaper apartments to more functional and amenity rich luxury homes. Developers and planners are evaluating their plans and focusing on projects with amenities and improved connectivity standards.
With the growing economy and parallel infrastructure support, the dream of bigger, better homes is now a reality. Settlements with privacy, access to wellness centers, open spaces, stores, hospitals, schools, and other amenities, are pushing the real estate market to drastically change its landscape.
