The sale of residential properties in the Jan-Sep period of 2022 has been much higher, surprisingly much more than even the Pre-COVID period, reports Anarock, leading property consultant. Latest survey figures indicate that the total sales in the Top seven cities of the country in 2022 till Nov would soon suppress 3.6 lakh units when the earlier record reads 3.43 lakh units for the year 2014.
Anuj Puri, chairman, Anarock Group, specifies that the year 2022 would create history in the residential market of India, smashing all the previous records in housing sales and the number of new project launches, and this momentum is surely on the upward trend promising much more. There is a strong demand for housing (1 to 3 BHK units) in major cities, especially for Gated Community apartments in Chennai and other leading metros. Let us look at the the major factors that drive this surge in the demand for residential properties
This has assumed great importance post the Pandemic. There is a pressing need felt by the major population to own a home for the sake of stability and security. A strong desire for a safe place to live in, one that has been designed and furnished to suit the specific requirements such as – professional duties during the WFH scenario, online activities for the children at home including academic coaching and other extra curricular classes, and more.
Safe and secured investment
The Q1 all-India HPI data points from FY 2010-11 to FY 2020-21 (10 years), indicate that the average annual growth rate or the rate at which the price of an investor’s residential property rises stands at 10.1 percent.)
The need for a Safe and secured investment option has accelerated property sales in the top metros. Both the stock and commodity derivatives market have displayed high volatility with many factors such as global political scenario, changing Governments, the threat of wars, the exploding oil prices causing inflation, etc. It has been observed in the mid-October period in 2022 that the NSE market index had shrunk by about 6% y-o-y while the price valuations in the housing market improved by 3.5% and sales has improved by about 76%. With residential property emerging as a safer, better yielding and more stable investment option there is a steep demand for flats for sale in Chennai and other leading metros.
Millennials constitute as much as 34% (or 440 million) of the Indian population, making them the largest consumer base in the country. The Millennials have displayed a keen interest in the property sector and many young professionals are keen on owning a home. They are professionally qualified, experience quicker career growth and have a large portion of disposable income which they wisely invest in real estate. The pandemic has also influenced their mindset, with WFH and hybrid work culture becoming more prevalent they feel a pressing need for a comfortable home designed to suit their needs, and also satisfy their desire of upscale living. Even young unmarried professionals prefer owning a home rather than renting or sharing accommodation as this brings much more security to their life.
Quality of Living
Post the Pandemic the mindset of the people has witnessed a drastic change, they pay more attention to health and family. The desire to hoard money for the future has become less and the focus has shifted to lead a healthy active and holistic living and make the best of present times. Gated community apartments from established real estate developers have assumed importance in this regard. Leading developers in the industry like Alliance(link to the Alliance home page) offer Gated community apartments in thriving parts of the city equipped with many amazing lifestyle amenities that cater to the needs of the home seekers. A great environment to live-in, many amenities to lead an active and socially connected life, specific security features and provisions to address to the needs of the children, ladies and senior citizens have been meticulously thought through and offered in such Gated community apartments, and sales of such residential properties have been consistently high in the property market.
Thus, a variety of factors have played a part towards the increase in the demand for residential properties in the major metros, especially Chennai the hub of IT growth, infrastructure development and good connectivity emerges as a top choice of home seekers and property enthusiasts. Apartments in Chennai in emerging micro markets from leading developers are specifically designed and built to cater to the evolving taste of buyers, built with latest technology and equipped with a world of upscale lifestyle amenities that make for the ideal living space and a safe investment.