‘The willingness to pay premium for branded residences is highest in Mumbai’
Mumbai, 26th August 2021 (GPN): Knight Frank India, a premier international real estate consultancy, in their latest survey “Indian Residential Buyer Preference Report – 2021; Living in the times of COVID 19” cited that 69% of respondents from Mumbai expect the value of their primary residence in the next 12 months. Mumbai leads the chart in the country with 87% of the respondents expressed in favour to pay a premium to purchase a home in a branded residential property. Nearly 35% of the respondents in Mumbai are willing to relocate to another city which quite higher than the ones willing to relocate within the city (13%). Nearly 29% expressed willingness to purchase a second home in the next 12 months.
With respect to home price trajectory; 58% of the city respondents expected the price of their current residence to increase by 1% – 9% in the next 12 months. This is a quantum shift towards optimistic sentimental value as 68% of the respondents indicated a decrease in their primary residence since the start of the pandemic.
SURVEY: Change in value of primary residence in the last 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 |
| 2% | 8% | 68% | 23% | 0% | 0% | 2% |
Source: Knight Frank India
SURVEY: Expected change in the value of primary residences in 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% | 2% | 0% | 29% | 58% | 8% | 3% |
Source: Knight Frank India
On the aspect of relocation or moving to a new home, 10% of the respondents from Mumbai reported to have relocated their residence since the start of the pandemic. It is further revealed 50% of the respondents who relocated cited the need of open and green spaces as the primary motivator for their decision. Interestingly, 35% of the respondents of Mumbai are inclined to consider relocating to another city in the next 12 month.
On the key reasons that will influence purchase decision in the future, Upgrading family residence (21%) followed by business / employment reason (16% of the respondents), and increase in family (15% of the respondents) were recorded as the key reasons.
On the aspect of preferred location features that will influence purchase decisions in future, 95% of the respondents reported accessibility to good healthcare as the primary feature to influence the purchase decision. Less polluted areas (89%), Proximity to workplace (81%) and Good views (81%) was opined as the other important features.
Survey: Important features that you will seek in your future purchase post pandemic.
| More Important | Same | Less Important | |
| Accessibility to larger green areas | 76% | 16% | 8% |
| Access to good healthcare | 95% | 3% | 2% |
| Less polluted areas | 89% | 10% | 2% |
| Proximity to social infrastructure (restaurants, bars, retail and cultural amenities) | 79% | 19% | 2% |
| Proximity to workplace | 81% | 16% | 3% |
| Access to good education institutions | 76% | 23% | 2% |
| Good views (open areas, lakes, etc) | 81% | 16% | 3% |
Source: Knight Frank Research
When enquired whether the impact from the pandemic influenced their decision for a second home, only 29% expressed their inclination towards purchasing a second home in near future.
Rajani Sinha, National Director and Chief Economist – Research, Knight Frank India said, “Mumbai witnessed a strong resurgence is sales post the cut in stamp duty announced last year. . In terms of prices, Mumbai Metropolitan Region has witnessed a correction of 17% in the last 5 years. The prices are expected to be stable in FY’22 with an upward bias in select locations.”
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 Mumbai market has been extrapolated chiefly from the mid-end income segment respondents. ENDS
Knight Frank’s Global Buyer Survey 2021 and Indian Buyer Survey 2021 perspective by Mr. Rohit Poddar, Managing Director, Poddar Housing and Development Ltd.: –
“The pandemic has led to a radical attitudinal shift when it comes to home-buying decisions. The demand for bigger space amongst the mainstream buyers is here to stay and people are happy to explore the peripheries of metro cities for the same. Buyers are preferring townships and projects that are at proximity to social and healthcare amenities. This trend is going to further boost housing demand in central and western suburbs when it comes to Mumbai. On the other hand, the investor class has realized the value of real estate and the financial security it brings along. The rise in NRIs or global Indians investing back in the home country has grown even in the pandemic and is further expected to continue.
As a result, the upcoming festive season is expected to see a growth in sales derived from both the buying-classes. This positive sentiment will hopefully continue as we keep taking gradual but steady steps towards normalcy.”
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