Chennai, 25th August 2021: Knight Frank India, a premier international real estate consultancy, in their latest survey “India Buyer Survey 2021- Living in the times of COVID 19” cited that over three-fourth (77%) of respondents from Chennai expected the value of their primary residence to increase in the next 12 months. While just 16% of the respondents cited to have moved to a new home since the start of the pandemic, more than half (55%) of the respondents have expressed willingness to purchase a second home in the next 12 months. Around 57% of the respondents have showcased a desire for purchase a second home because of the COVID pandemic.
With respect to home price trajectory; 46% of the city respondents expected the price of their current residence to mark up between 10% and 19% in the next 12 months. Around 18% of the respondents expected an increase by more than 20% in the next 12 months. This is indicative of an optimistic shift in the buyer’s sentiment as close to half of the respondents from the city reported a decline in the value of their primary residence since the pandemic
On the aspect of relocation or moving to a new home, 84% of the respondents from the Chennai reported to have not changed their primary residence through the pandemic. Of the remaining 16% of the respondents who have relocated during the pandemic, it is revealed 56% of the respondents had decided to relocate due to the option to working from home. When enquired whether the pandemic influenced any relocation plans over the next 12 months, 55% of respondents were of the opinion that the due to the pandemic, they were more willing to relocate, preferably within the city.
On the key reasons that will influence purchase decision in the future, 64% of the city respondents opined upgrading their family’s primary residency as the primary reason that would influence their decision. Increase in family size (20% of the respondents) was opined as the second most important reason that would influence their future home purchase decision. Respondents have also cited purchase decisions pertaining to Holiday Home (11%) as also an important factor that influences home purchase decision in the future.
When enquired whether the impact from the pandemic influenced their decision for a second home, 57% expressed more likeability of purchasing a second home in near future. On the aspect of change in spending propensity for a home due to the pandemic, 63% of respondents have cited an increase in their budget for spending on a new home.
On key features buyers will look for in a home post lockdown, 96% of the respondents in Chennai were more likely to consider access to large green areas as an important aspect of their new residence. About 66% of the respondents have opined proximity to their place of work as a crucial feature they will seek in their next home.
Rajani Sinha, Chief Economist and National Director – Research, Knight Frank India said, “Chennai residential real estate market has managed to remain resilient, despite the pandemic. This is reflected in the optimistic sentiments reflected by the buyers. The city’s real estate market is experiencing a turn around after the bottoming of prices due the first lockdown, as more and more buyers, who were on the fence, have been unable to resist the low prices in the city. Chennai further received an infrastructure boost in the recent Tamil Nadu state budget announcement, which will improve connectivity to various parts of city and further aid in the increase in price, boosting sentiments for all stakeholders in Chennai’s residential real estate market.”
On the aspect of the impact of the pandemic on the type of home to live in the future, 96% were of the opinion that they were more likely to live in an apartment/condominium. Independent home/Villa (73% ) was the next top choice opined by the respondents from Chennai.
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 Chennai market has been extrapolated chiefly from the mid-end income segment respondents.
About Knight Frank:
Knight Frank LLP is a leading independent, global property consultancy. Headquartered in London, Knight Frank has more than 20,000 people operating from over 488 offices across 57 markets. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com
Knight Frank India is headquartered in Mumbai and has more than 1,200 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land & capitals), facilities management and project management. For more information, visit www.knightfrank.co.in