Pandemic spurs demand for luxury villas, farmhouses
When the first wave of COVID-19 hit the Indian subcontinent, real estate became a major sector that was impacted severely. The demand again spurred in late 2020 as the COVID-19 numbers went down. However, the deadlier second wave of the coronavirus pandemic impacted the purchase of real estate. But the demand for luxury villas and farmhouses remained steady as people looked for safe and sprawling locations.
Farmhouses and luxury villas or holiday homes previously contributed about 8-9% to the total sale of residential properties before the pandemic. This number has now unusually risen to 20%, suggesting that safety remains the primary concern of people investing in such properties.
In Delhi, the demand for luxury villas and farmhouses was led by doctors, lawyers, and architects. While in Mumbai, the growth was seen increasing due to heavy investments from industrialists and actors. However, the high demands were also seen for city centre housing real estate among other investors.
Despite waves of COVID-19 in the country, real estate is seeing a steady rise in demand with the government’s support. Talking about the coronavirus pandemic and Indian real estate, the CEO of India Sotheby’s International Realty said that farmhouses and independent plots have witnessed an increase in demand and price. He added that few micro-markets have seen around 20-25% growth in price.
Increasing demand and COVID-19 pandemic
Although the coronavirus pandemic hit the country in early 2020, the sector only witnessed recovery during the winter months of the country. In 2021, the demand for holiday homes along with farmhouse and luxury villas have risen, especially in hill stations like Shimla, Rishikesh, Mussoorie, and Dehradun. Since these states have difficult terrains for inventory supply, prices have gone to the moon.
Similar remains the scenario in Goa where places like Anjuna, Soilim and Reis Magos have witnessed a strong rise in demand and prices. The trend of NRI investments in India in real estates like luxury villas and farmhouses are seeing a low but steady rise, which was adversely affected before the COVID-19 pandemic.
In conclusion
While people are still hesitant about on-site visits, they are exploring virtually and investing amidst the decreasing second wave of COVID-19. The subsiding second wave is leading to more enquiries, especially for luxury properties.
With the work from anywhere in place, the rich and wealthy are investing in spacious farmhouses and luxury villas with customisation. Brokers and real estate developers suggest that the enquiries for second homes in specific locations have spurred amidst the pandemic.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
