Residential Demand to Pick-up in 6-12 months

Residential real estate demand, though currently stalled, could show signs of a gradual pick-up in 6-12 months once the COVID-19 impact reduces, a research report has said. About one-fifth of end-users or 21 percent may return to the market during this period, but a significant 70 percent do not plan to purchase a home within a year. The activity would be a mix of affordable and mid-segment, as the purchases will be linked to the stability of jobs and cash flows, according to the report by Savills India. The activity would be a mix of affordable and mid-segment, as the purchases will be linked to the stability of jobs and cash flows. As for which segment will be the first to recover post-COVID, activity across all segments as the pent-up end-user demand will emerge across segments. End-users as well as investors are likely to show a higher preference for smart homes and integrated townships in the post-COVID world. In terms of paying premium, about 30 percent of end-users as well as investors show a willingness to pay premium for homes that incorporate wellness concepts. End-users are also showing an inclination to purchase second homes. About 30 percent of such buyers said that they would be interested in locations like Goa and about the same number showed interest for properties situated in the hills.