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This year there was a lot of buying of big houses before the second wave of Kovid arrived. Sales of 3BHK and above houses grew 19% in seven major cities of the country. According to PropEquity data, 30,169 flats were sold in the first quarter of 2021. During the first quarter of last year, when Covid started hitting people, 25,307 large flats were sold.
The effect of ‘work from home’ culture is visible
According to a report by real estate data, research and analytics firm PropEquity, many working people are looking for bigger houses to live in amid the spread of coronavirus. It also says that the culture of ‘work from home’ ie WFH has increased in the Kovid era, which the central and state governments are still advising the corporates to adopt.
30% reduction in new house launches
However, between January and March this year, the launch of new houses i.e. new supply of flats decreased by 30% on an annual basis. According to the data, 20,848 houses were launched in the March 2021 quarter as against 29,836 new houses were available for sale last year. The slowdown in the launch of new houses was due to the developers pulling out the stock of pre-built houses and making smaller houses bigger to meet the demand.
Sales of big houses increased the most in Mumbai
Home sales increased in Bengaluru, Chennai, Hyderabad, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune. Mumbai saw the highest growth of 54% in large house sales, while Chennai came second with 43% growth. It was followed by Pune (34%), Hyderabad (14%), NCR (13%) and Bengaluru (10%). Kolkata was the only major city to see a 12% drop in sales of large houses during the first quarter.
The trend of buying big houses will continue
According to Sameer Jasouza, Founder and Managing Director, PropEquity, “The trend of buying big houses in India will continue as it will take a long time for everyone above the age of 18 to be vaccinated. The possibility of a third wave of Kovid is also being expressed. This means that the work from home system is going to last for some more time. The bad effect that the second wave was supposed to have has already happened. Normal transactions in the property market will gradually get back on track.
People are getting used to the WFH culture
Ankush Kaul, president (sales and marketing), Ambience Group, says, “People are getting used to the work from home culture and this has led to an increase in the demand for big houses. After the first lockdown when Kovid came last year, people started looking for big houses to live in. In fact, the schooling of the children was also started from home, due to which they and their parents started feeling the need of separate space for themselves.
Kaul said that the demand for separate rooms for home office in big houses or houses has been coming for several months. He said that this trend may continue this year as well.