Endâusers take over the market; Buck the trend of last two decades
Current ratio almost at 85:15; Gap to widen further
Festive sales breach 2014 peak; indicate a sharp Vâshaped recovery
The endâuser dominance of DelhiâNCR market indicates RE growth trajectory set to emulate earlyâ90s and 2004â05 growth path
A close look at this year’s festive trends in DelhiâNCR indicate a sharp Vâshaped recovery for real estate in DelhiâNCR. The post pandemic furious action in the recent festive season, coupled with steady postâpandemic changes in the DelhiâNCR market, clearly points to a great Real Estate (RE) resurgence that DelhiâNCR region is readying for. On the back of largely three key developments (endâuser taking over the market, pandemicâinduced lifestyle changes and the sales numbers in the festive this year), the real estate market which has already touched the 2014 peak, is all set to emulate the early 90s and the 2004â05 growth trajectory.
While the preâpandemic market saw investors playing a dominant role, postâpandemic sentiment has brought back the change in the trend with the endâusers taking the grip over the market right back. The last time the region witnessed such endâuser dominance was in 2004â05, when the ratio between endâusers and investors touched 90:10. Interestingly, prior to 2004â05 period, such dominance was seen in earlyâ90s on the back of the economic reforms. All key parameters indicate that the grip of the endâuser is going to further strengthen over the next three-year period, and is well on its way to touching a 90:10 ratio. This means that the cyclical trend that kicked off on the back of a similar ratio in early 90s and 2004â05 comes back into play, and is expected to drive a phenomenal growth, along the same lines. “The sharp Vâshaped recovery that DelhiâNCR market is witnessing indicates good times ahead for Real Estate sector. The nearâtotal endâuser dominance in the RE market is going to once again kickâoff the aggressive, and very welcome, growth cycles seen in the past. The pandemicâinduced slow down seems to be a thing of the past and the DelhiâNCR market seems to be readying to ride the tailâwinds on to a new high,” says Vishesh Prakash, R&R by RISE Infra.
The early indicators of a strong Vâshaped recovery are evident in the sales numbers that have happened during the current festive season. Nationally, the sector has breached the 2014 numbers when the top 7 cities sold around 3.4 lakh units; and is currently sitting at around 3.7 lakh units in the same markets. DelhiâNCR has played a vital role in making this growth happen. Till festive, this year, the number stands at 51,864 units, and is expected to grow rapidly over the next few years. Delhi NCR saw a sale of over 50k units till Q3, up by 170 per cent as compared to the same period last year. Furthermore, Delhi NCRs market sentiments in terms of demand that got padded up during the festive period, witnessed an increase in capital values of 5â9 percent QoQ basis and 11â16 percent on YoY basis in Q3.
The pandemic has also changed the profile of the endâuser. With concerns like workâlife balance, wellâbeing and changing world of work coming to the forefront for professionals and service class alike, there are newer concerns that are impacting the decision of home buyers now. This represents a major shift in the mindâset of homebuyers, which is also largely responsible for the rapidly increasing numbers of end users deciding to buy or upgrade their homes, and thereby driving the growth.
Closer to workplace: Among those who are looking at resuming full time working from office, 68% of home buyers are using being close to the work place as an essential parameter to either buy their first home or upgrade their property.
Hybrid, work from home: 72% of those who are looking at a hybrid work arrangement going ahead, are looking at extra space at their home towards a dedicated workstation which affords them some level of privacy. This is both for first time home buyers and those looking to upgrade their existing home.
Wellness quotient driving decisions: 82% of home buyers today are looking at parameters that not only improve the family’s quality of life but also safeguards them against another pandemicâlike event in the near future. Some of these parameters include facilities like club house, swimming pool, walking tracks, sporting facilities, etc.
RISE Infraventures Limited Reports
Research & Reports (R&R) By RISE Infra aims to create an ecosystem within RE Segment which is fact-based, Data Driven and analysis-laden. The emphasis at R&R by RISE Infra is on curating reports that track the trends on the ground and share keyâinsights to benefit all stakeholders. R&R By RISE Infra is an independent research wing of Rise Infraventures Limited, With the vision to bring actual realty for buyers & sellers.
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