“While residential real estate growth in the future will be driven by affordable and mid-segment, there will be sustained demand for high-quality luxury housing in select locations,” said Gaurav Kumar, Managing Director – Capital Markets and Residential Services, CBRE India.
In an exclusive interview with RoofandFloor, he spoke about emerging trends, the future of luxury housing, and much more. Here are the excerpts.
What is your take on the future of residential real estate post-Covid?
The residential sector gained momentum post-Q2-Q3 2020 as homeownership became a priority. Residential sales are expected to witness a smooth spike post the pandemic due to the changing work culture and the demand that comes with it. Projects launched at well-developed locations with advanced physical and social infrastructure are expected to see more traction in the coming year.
Strong policy support, low mortgage rates, reduction in stamp duties in some cities, and attractive payment schemes offered by the developers has spurred strong sales in the residential industry.
While growth in the future will be driven by affordable and mid-segment, there will be sustained demand for high-quality luxury housing in select locations.
Several market reports have suggested growth in the luxury segment. What are your views on that? Who is driving demand in this segment?
Further, the sustained work-from-home culture forced most young professionals to look for self-sufficient residential units that offer more space and a higher level of amenities. There is also a surge in buyers opting for second homes. Destinations such as Goa are now hot favourites for the luxury clientele – offering larger spaces, lower population density, and hence better health and safety, favourable weather, and better AQI (Air Quality Index), among other factors.
What are some trends that you expect to see in residential real estate in H2 2021?
- The Covid-19 outbreak has led to developers looking at innovative solutions to develop more holistic and functional home models to cater to the evolving work lifestyles of homebuyers. This has led to greater demand for housing projects offering more floor space and better amenities.
- Tech-enabled gated communities and residential properties have witnessed a surge owing to the demand for exclusive services and offerings. These are especially attractive to the young and affluent buyers as it effortlessly complements their affinity for a convenient and upgraded lifestyle.
- Developers can be expected to further invest in PropTech and digitisation solutions. The sector is expected to balance physical property visits and virtual visits when buying and selling ready-to-move-in homes aided by implementations such as AR/VR solutions and 3D virtual experiences.
- With growing concern around wellbeing and sustainability, the residential segment can also witness an increase in demand for sustainable housing. These projects will focus on reducing the overall environmental impact, along with offering future-ready design and facilities.
Do you think property prices are headed for a price correction in the coming months?
No, we do not expect a price correction. The residential industry is witnessing robust volumes, which would typically augur well for capital appreciation. While it is early to comment on a significant price spike, in the short run prices are likely to remain constant or witness an increase.
Prices of well-established and completed residential products have already witnessed appreciation in many locations.