Future Trends in Real Estate
The Residential Sector has seen an exponential growth post Covid. People who were confined to living in a single room in buildings without any compounds or common amenities realised that they wanted a better lifestyle. Keeping their budgets in mind,
they moved to B & C grade locations but into bigger apartments with much better
amenities.
Now that Covid is (hopefully) behind us, in the current scenario do you think this
momentum is sustainable? According to me, it’s probably not. Taking a plunge from a
rented house to your own, factoring in rent vs emi, is a fair call but what most buyers
forget to factor in is taxes they pay for maintenance & property which is a substantial
amount, depending on the amenities and facilities they opt for.
The likelihood of a slow down or saturation in residential rates in B & C locations is
extremely likely. However, this may not apply to the Premium locations & Premium
properties which have a separate section of buyers. Due to the spurt in demand in the
mid and lower segment of residential properties, this segment has also slowly but
surely risen. Certain industries like Healthcare, Pharmaceutical, Food, Delivery
Services and their ancillaries had a dream run and all the top management moved
into premium houses in prime locations, driving the prices northward. This segment
may grow at a pace much lesser than what we all saw in the past 2 to 3 years.
Please feel free to share your feedback and opinions in the comments below.
Topic for next week: Future prospects of commercial properties.
