Why are Homebuyers Shifting to Peripheral Areas?
According to a recent consumer survey by ANAROCK, a whopping 43% of homebuyers now prefer living in the peripheral areas while 28% prefer homes in the city limits. When probed further, it came to light that the recent work from home culture has propelled residents to opt for larger spaces that can function as multi-utility spaces to accommodate their workstations and their child’s study space. According to JLL’s Home Buyer Preference Survey 2020, over 90% of the prospective buyers who were surveyed wanted a study room to ensure maximum productivity.
Proximity to the workplace which was considered a key factor while buying a home has now taken a backseat thanks to the work-from-home culture. The increased need for hygiene and a clean environment has also added to this change. Additionally, affordability is another factor that is contributing to this reason. Add to this, there has been an increasing demand for new projects in Bangalore that include facilities like sports courts, fitness centres, swimming pools, clubhouses, etc. Rera approved projects in Bangalore like Mahendra Aarya have equipped themselves well with these facilities to ensure that everything is at your disposal.
The report also states that there has been a shift in the attitude of millennials or those aged between 25-40 with more number of them preferring to buy rather than rent. The data further reveals that the rental outgo for a tenant living within the city limits for 5 years equates to 27.52% of the total property cost in the peripheral areas of Bengaluru. This rationale has led to strong demand for investing in new projects in Bangalore in the peripheral areas. Keeping with the trend of large spaces; there has been a drop in demand for one-bedroom houses even in several luxury apartments in Bangalore. The National Real Estate Development Council and real estate portal Housing.com have conducted a joint survey on consumer sentiment and it was found that over 40% of the buyers are seeking to upgrade their homes and as reiterated, there has been a reduction in the demand for one-bedroom houses by about 10%. Additionally, the demand for 3 BHKS has jumped to 40% as against the previously preferred 2BHK’s.
The demand in peripheral areas can also be attributed to a good supply of ready-to-move properties. This trend can be majorly observed in cities like Bangalore, Hyderabad, Chennai, Pune, etc. It is not to be mistaken that this demand stems solely from the working class as we can witness this trend among entrepreneurs as well especially small-time business owners who are now relocating their workplaces to their luxury apartments in Bangalore to cut down on office rental costs and travel time.
All these factors have led to a huge demand in peripheral areas like Electronic City. In all possibility, this trend is going to continue in the future. The increased connectivity, commercial development, low capital values and growing rental housing have all made the peripheral areas a viable option to invest in.