MUMBAI, India — As per the latest Knight Frank global and India buyer survey, nearly 61 percent of homebuyers in mainstream India expect residential prices to increase in the next 12 months.
The report said that 19 percent of respondents globally have moved to a new house since the start of the pandemic.
This rises to 25 percent in Australasia and North America.
Of the non-movers, 20 percent are more likely to move in 2021, even if the pandemic continues.
In the Indian edition of the survey, 26 percent of mainstream Indians had moved their residences within the pandemic period. These relocations were motivated by factors like want for more open space and proximity to friends and family.
For Indian mainstream non-movers, 32 percent were more inclined to move residences in the next 12 months.
“Across Asia-Pacific, buyer appetite has been strongest in New Zealand, Australia, Chinese Mainland, Hong Kong, Korea, and Japan post-lockdown,” said Victoria Garrett, Asia Pacific researcher.
“I think most markets are still adjusting, and it is hard to say if this activity is part of a new market cycle, or we are simply seeing pent-up demand being released.”
An overwhelming 87 percent of the respondents who desire to move homes in the next 12 months favored the suburban neighborhood of their current city of residence, while 13 percent of respondents who want to relocate may consider an alternate city.
Globally, 64 percent of respondents expect the value of their primary residence to increase in the next 12 months. In the global Indian segment, which represents the higher-income segment, 32 percent expect prices to rise.
Reflecting a more optimistic outlook, 61 percent of respondents in the mainstream Indian segment expect prices of their primary residences to rise in the next 12 months.
The report emphasizes that the future of work will play a significant part for the commercial sector and the residential. More than half of the mainstream Indian segment respondents expect to be back in the office for the entire workweek once all restrictions are lifted.
“The pandemic has changed the outlook towards ownership of homes,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
“Globally, two trends have stood out in the last few months. Firstly, a growing ambivalence of some buyers when it comes to the location provided they can secure a co-primary home that delivers the lifestyle and enjoyment they feel they have missed out on.”
“Secondly, given low savings rates and frothy stock markets, buyers are taking a more defensive stance by rebalancing their portfolios with a greater focus on tangible assets such as property,” said Baijal.
“Energy-efficient homes are also gaining traction as the concept is finding preference among homebuyers in India.”
(With inputs from ANI)
Edited by Saptak Datta and Praveen Pramod Tewari
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