As several companies adopt ‘work from home’ policy on a long term basis, housing preferences of working people in terms of location are set to change.
According to a report by Anarock Property Consultants, with work from home becoming a norm, prospective home buyers are likely to move to the peripheral areas of cities where they are likely to get a bigger home at affordable prices compared to the cities.
“The COVID-19 era presents a radically transformed real estate market, with preferences changing to accommodate new market realities. With work-from-home a viable option even after the lockdown, many future homebuyers will shift to the peripheral areas for bigger homes and a better lifestyle – at more affordable prices,” it said.
The report said that the previous ‘gold standard’ of Indian housing a” “walk-to-work or “short drive to work” – the norm living in and around central corporate workplace hubs, may shed some of its popularity for the middle class. Central locations would retain their allure for high net worth individuals and aC-suite’ level buyers who can afford larger spaces there.
“The work-from-home concept may become the next fulcrum for homebuying decisions,where the walk-to-work option had held the longest sway,” says Anuj Puri, Chairman, Anarock Property Consultants.
He added that with the rise of the work from home 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, Puri said, adding that bigger homes, affordable prices and more generous open spaces in the peripheral areas willdraw demand from tenants and buyers alike.
Data from Anarock Property Consultants showed that in the Mumbai Metropolitan Region (MMR), the average price for a standard 1,000 square feet property in areas within city limits is around Rs 1.85 crore, against Rs 55.35 lakh in the peripheral areas, a cost difference of 70 per cent.
The average monthly rent for a standard 2BHK home in areas within city limits is around Rs 45,800, against Rs 12,500 in the peripheries.
In the National Capital Region, the average price for a standard 1,000 square feet property in areas within city limits is around Rs 88.20 lakh, against Rs 37.50 lakh in the peripheral areas, a 57 per cent difference.
Average monthly rent for a standard 2BHK home in areas within city limits is around Rs 22,000, against Rs 9,500 in the peripheries.