In recent years, the housing sector has seen a significant shift away from the “Uberization” trend, where renting is preferred over homeownership. This trend reflects the disruptive impact that ride-sharing services such as Uber have had on the transportation industry, and has particularly gained momentum among younger generations who value flexibility and are wary of the long-term commitments that come with homeownership. However, recent data and insights suggest that we are seeing a notable shift in consumer preferences post-COVID, with a renewed desire for homeownership.
Anshul Jain, chief executive, India and Southeast Asia, Cushman & Wakefield, highlights this shift. “Demand for housing in India was quite sluggish from 2013 to 2019 and prices remained stagnant. During this period, there was a noticeable trend towards renting, especially among young people who did not want to commit to owning property,” he said in a recent video interview with PTI. “However, the COVID pandemic has fundamentally changed this mindset. People have realised the stability and security that comes with owning a home. The demand for bigger homes and the low interest rate environment post-pandemic have further fuelled this trend,” he added.
Industry leaders from leading real estate groups echo this sentiment. Mohit Goel, managing director, Omaxe Group, said: “The pandemic has forced people to rethink their priorities. The value of having a stable and safe housing environment has become paramount. We have seen a significant increase in enquiries and sales as people seek long-term peace of mind.”
Similarly, Deepak Kapoor, Director, Gulshan Group said, “Flexibility was a major driver for renting. However, the uncertainty brought about by the pandemic has shifted consumer preferences back towards home ownership. There is a renewed sense of investing in one’s future, which is driving the market.”
Rajjath Goel, Managing Director, MRG Group further added, “The Uberisation trend, while significant at one time, was always limited by the innate desire to own, especially in a country like India. The post-COVID era has highlighted the importance of home ownership not just as an asset but as a fundamental part of life and security.”
This trend is backed up by Ankush Kaul, Chief Operating Officer, Ambience Group, who said, “We are seeing a clear shift in market dynamics. The demand for quality housing has skyrocketed and consumers are increasingly preferring reputable builders who can deliver on their promises. The trend towards Uberization was not a permanent change but a reaction to the economic and social conditions of the time.”
According to market reports, India’s housing market has seen a sharp recovery post-COVID. Sales last year hit an all-time high and prices rose an average of 10% annually in eight major cities. In some micro-markets, prices have surged by 40-70% in the past two years. This growth is being driven by end-user demand and a shift towards builders with proven and reputable track records.
Anshul Jain of Cushman & Wakefield noted that while prices have surged post-COVID, the market is expected to stabilise with nominal growth over the next few years. “The market is nearing its peak now. Prices have surged but going forward we expect more stability and nominal growth driven by normal market parameters such as inflation and stable demand,” he explained.
In conclusion, the housing sector is seeing a decline in the trend of “Uberization” as the desire for homeownership is on the rise again. The COVID-19 pandemic has played a pivotal role in reshaping consumer priorities, highlighting the security and stability of homeownership. As the market stabilises, the focus has been on providing quality housing to meet the growing demand, reaffirming the long-standing value of homeownership in India.