“India Buyer Survey 2021- Living in the times of COVID 19” : Knight Frank India
- 77% of Chennai home owners expect price of their primary residence to increase in next 12 months
Chennai, 25th
August 2021: Knight Frank India, a premier
international real estate consultancy, in their latest survey “India Buyer Survey 2021- Living in the times of
COVID 19” cited that over three-fourth (77%) of
respondents from Chennai expected the value of their primary residence to increase
in the next 12 months. While just 16% of the respondents cited to have moved to
a new home since the start of the pandemic, more than half (55%) of the
respondents have expressed willingness to purchase a second home in the next 12
months. Around 57% of the respondents have showcased a desire for purchase a
second home because of the COVID pandemic.
With respect to home price
trajectory; 46% of the city respondents expected
the price of their current residence to mark up between 10% and 19% in the next
12 months. Around 18% of the respondents expected an increase by more than 20%
in the next 12 months. This is indicative of an optimistic shift in the buyer’s
sentiment as close to half of the respondents from the city reported a decline
in the value of their primary residence since the pandemic
Survey: Expected change in the value of your primary
residence over the next 12 months.
|
Decrease 20% or more |
Decrease 10% to 19% |
Decrease 1% to 9% |
No change |
Increase 1% to 9% |
Increase 10% to 19% |
Increase 20% or more |
|
0% |
5% |
0% |
18% |
13% |
46% |
18% |
Source: Knight Frank Research
On the aspect of relocation
or moving to a new home, 84% of the respondents
from the Chennai reported to have not changed their primary residence through
the pandemic. Of the remaining 16% of the respondents who have relocated during
the pandemic, it is revealed 56% of the respondents had decided to relocate due
to the option to working from home. When enquired whether the pandemic
influenced any relocation plans over the next 12 months, 55% of respondents
were of the opinion that the due to the pandemic, they were more willing to
relocate, preferably within the city.
Survey: Have you moved/shifted your residence since
pandemic – February 2020?
|
Yes |
No |
|
16% |
84% |
Source:
Knight Frank Research
On the key reasons that
will influence purchase decision in the future, 64% of the city
respondents opined upgrading their family’s primary residency as the primary
reason that would influence their decision.
Increase in family size (20% of the respondents) was opined as the
second most important reason that would influence their future home purchase
decision. Respondents have also cited purchase decisions pertaining to Holiday
Home (11%) as also an important factor that influences home purchase decision
in the future.
When enquired whether the impact
from the pandemic influenced their decision for a second home, 57%
expressed more likeability of purchasing a second home in near future. On the
aspect of change in spending propensity for a home due to the pandemic, 63% of
respondents have cited an increase in their budget for spending on a new home.
On key features buyers
will look for in a home post lockdown, 96% of the respondents in Chennai were
more likely to consider access to large green areas as an important aspect of
their new residence. About 66% of the respondents have opined proximity to
their place of work as a crucial feature they will seek in their next
home.
Rajani Sinha, Chief Economist and National Director – Research, Knight Frank India said, “Chennai residential real estate market has managed to remain resilient, despite the pandemic. This is reflected in the optimistic sentiments reflected by the buyers. The city’s real estate market is experiencing a turn around after the bottoming of prices due the first lockdown, as more and more buyers, who were on the fence, have been unable to resist the low prices in the city. Chennai further received an infrastructure boost in the recent Tamil Nadu state budget announcement, which will improve connectivity to various parts of city and further aid in the increase in price, boosting sentiments for all stakeholders in Chennai’s residential real estate market.”
On the aspect of the impact of the pandemic on the type of home to live in the future, 96% were of the opinion that they were more likely to live in an apartment/condominium. Independent home/Villa (73% ) was the next top choice opined by the respondents from Chennai.
The survey for India Buyer
Survey – 2021 was conducted with an objective to gauge the impact of the
COVID-19 pandemic and the subsequent lockdown on residential segment consumers.
Part I of the survey comprises of respondents from the high-end income segment,
while Part II chiefly consists of respondents from the mid-end income segments.
The inferences for the Chennai market has been extrapolated chiefly from the
mid-end income segment respondents.
