News: Kolkata: Pandemic leaves imprint on home buying, bigger flats remain in demand-28-02-2022
While the largest pie of home sales comprised twobedroom homes till 2019, the pandemic saw the home buyers willing to invest more to purchase bigger homes. Consequently, demand for three bedroom homes outstripped that of two-bedroom apartments in 2020. In 2021, demand for three-bedroom flats increased further. So did the sales of four-bedroom apartments
KOLKATA: After two years and three waves, the pandemic appears to be on the wane. But developers believe it will leave its imprint in home-buyers' minds for several years more, leading to higher demand for larger homes than existed prior to the pandemic
While the largest pie of home sales comprised twobedroom homes till 2019, the pandemic saw the home buyers willing to invest more to purchase bigger homes. Consequently, demand for three bedroom homes outstripped that of two-bedroom apartments in 2020. In 2021, demand for three-bedroom flats increased further. So did the sales of four-bedroom apartments. The lockdown from March 2000 that forced people to stay confined in their homes for months and work and study out
of there led to a demand for bigger apartments with a spare room that could act as a virtual office or classroom, depending on the requirement at the time of the day. Also, people understood the value of balconies that provided a safe connection with the world outside. Though Covid-cases have now reduced to a trickle and offices as well as schools have reopened, home buyers are not shifting preference back to smaller units. When Merlin group advertised a 1,000 units project in Rajarhat where 70% of the units were 2BHK and the rest 3BHK, 70% applications that it received were for threebedroom units. "There used to be a saying that people have very short memories. But the Covid and lockdown has been such a jolt that people won't forget it in a hurry. The pandemic made many realise the value of home. Prospective buyers are still willing to invest the additional amount on a bigger house and secure their future," said Merlin group MD and Confederation of Real Estate Developers' Association of India (Credai) West Bengal president Sushil Mohta. Nandu Belani, president of Credai Bengal, felt it would take at least a couple of years more for people to again consider smaller units. "Projects that are launched a year from now may again return to the old matrix. But as of now, big is still beautiful if you can afford it," he said. While the share of 2BHK units that was nearly 48% in 2019 has declined to 40% in 2021, that of 3BHK units has gone up from 44% to 54% during this period. While the pie of 4BHK units remains small, sources said the numbers have actually gone up more than two-times from just below 2% to 4.7%. And home-buyers are willing to spend that much more for larger units. Apartments in the Rs 51 lakh to Rs 1.5 crore bracket have all witnessed an increase in demand with those in the Rs 51-60 lakh going up from less than 8% to 17%.
BHK-WISE DEMAND (OVERALL KOLKATA) in %
Unit size | 2019 | 2020 | 2021
1 BHK | 6.74 | 1.25 | 1.31
2 BHK | 47.69 | 44.05 | 40.19
3 BHK | 43.79 | 52.63 | 53.78
4BHK | 1.76 | 2.07 | 4.72
BUDGET-WISE DEMAND (OVERALL KOLKATA) in %
Price bracket | 2019 | 2020 | 2021
11 to 20 lakh | 12.37 | 8.47 | 3.19
21 to 30 lakh | 19.21 | 17.68 | 10.96
31 to 40 lakh | 20.63 | 17.71 | 16.57
41 to 50 lakh | 22.50 | 23.36 | 21.81
51 to 60 lakh | 7.70 | 10.62 | 16.92
61 to 70 lakh | 8.24 | 10.63 | 9.49
71 to 80 lakh | 4.10 | 4.89 | 7.9
81 to 90 lakh | 1.67 | 1.76 | 4.37
90 lakh to 1 cr | 1.65 | 2.63 | 2.29
1.01 cr to 1.5 cr | 1.92 | 2.25 | 6.51
