In recent years, the residential sector has witnessed a significant shift away from the "Uberisation" trend, where renting was preferred over owning homes. This trend, which mirrored the disruptive influence of ride-sharing services like Uber in the transportation industry, gained momentum particularly among younger generations who prized flexibility and were wary of long-term commitments associated with homeownership. However, recent data and insights suggest a notable change in consumer preferences post-COVID, indicating a resurgence in the desire for homeownership.
The housing demand in India was quite muted from 2013 to 2019, with prices remaining stagnant. There was a significant inclination towards renting during this period, especially among youngsters who didn't want to commit to owning properties. However, the COVID pandemic fundamentally altered this mindset. People realized the stability and security that comes with owning a home. The demand for larger houses and the low-interest-rate environment post-pandemic further fueled this trend.
While there has been a steep rise in prices post-COVID, the market is expected to stabilize with nominal growth in the coming years. We are near the peak of the market right now. The prices have risen sharply, but going forward, we can expect more stability and nominal growth driven by normal market parameters like inflation and steady demand. In conclusion, the residential sector is experiencing a decline in the "Uberisation" trend as the desire for homeownership resurges.
