‘Larger green areas and accessibility to good healthcare resulted in as the key features to influence purchase of new homes’
Hyderabad, 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 80% of respondents from Hyderabad expect the value of their primary residence to increase by more than 10% in the next 12 months. More than half of the respondents are inclined to consider shifting to a new home within the city. Around 55% of the respondents expressed willingness to purchase a second home in the next 12 months.
With respect to home price trajectory; 57% of the city respondents expected the price of their current residence to increase by 10% – 19% in the next 12 months. This is a quantum shift towards optimistic sentimental value as more than half reported a decline in the value of their primary residence since the start of the pandemic.
Survey: Expected change in the value of your primary residence over the next 12 months.
| Decrease 20% or more | Decrease 10% to 19% | Decrease 1% to 9% | No change | Increase 1% to 9% | Increase 10% to 19% | Increase 20% or more |
| 0% | 2% | 8% | 11% | 20% | 57% | 3% |
Source: Knight Frank Research
On the key reasons that will influence purchase decision in the future, 43% of the city respondents opined increase in family size as the primary reason that would influence their decision. Upgrading family’s primary residence (22% 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 (12%) as also an important factor that influences home purchase decision in the future.
On the aspect of preferred location features that will influence purchase decisions in future, 97% of the respondents reported larger green spaces as the primary feature to influence the purchase decision. Accessibility to good healthcare (91% of the respondents) was opined as the second most important feature and proximity to workplace (78% of the respondents) resulted in as the third most important feature.
Survey: Important features that you will seek in your future purchase
purchase post pandemic.
| More Important | Same | Less Important | |
|---|---|---|---|
| Good views (open areas, lake, etc) | 17% | 15% | 68% |
| Access to good education institutions | 31% | 11% | 58% |
| Less polluted areas | 26% | 9% | 65% |
| Proximity to social infrastructure (restaurants, bars, retail and cultural amenities) | 29% | 6% | 65% |
| Proximity to workplace | 78% | 6% | 15% |
| Access to good healthcare | 91% | 2% | 8% |
| Accessibility to larger green areas | 97% | 3% | 0 |
Source: Knight Frank Research
On the aspect of relocation or moving to a new home, 54% of the respondents from the Hyderabad reported to have relocated their residence since the start of the pandemic. It is further revealed 58% of the respondents who relocated have cited the need for more open space / outdoor spaces as the primary motivator for their decision. When enquired whether the pandemic influenced any relocation plans over the next 12 months, 76% of respondents opined that the pandemic rough no change to their relocation plans. If inclined, the preference will be to move within the city.
When enquired whether the impact from the pandemic influenced their decision for a second home, 55% expressed more likability of purchasing a second home in near future.
Rajani Sinha, Chief Economist and National Director – Research, Knight Frank India said, “The Hyderabad housing market has been very optimistic on various key parameters across buyers’ sentiments. Larger green open spaces, access to good healthcare and proximity to workplace areas anchored as the key features to influence the purchase decision of a home buyer. While IT firms continued to grow in their core business, Hyderabad continued to be a promising residential destination for end users and investors alike. Interestingly, the attitudes of the home buyers have been positive when it comes to spending propensity.”
The city level changes in spending propensity revealed that 54% of the respondents indicated an increase by up to 9%. The attitudes of the respondents in Hyderabad are fairly optimistic when it comes to spending propensity for buying new homes.
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 Hyderabad market have been extrapolated chiefly from the mid-end income segment respondents.
