Are gated communities the new standard? 64% of homebuyers say yes

In the second half of 2023, 64 per cent of homebuyers prefer properties in gated communities, according to a report by  NAREDCO.
These secure and self-sustained residential developments are not just providing shelter they are redefining the concept of urban living, and they are emerging as the top choice for home buyers, say experts.

"With rising property prices and interest rates, incentives such as stamp duty and GST waivers, along with flexible payment plans, top the list of factors influencing home purchases in the next six months. These measures aim to make home ownership more accessible and appealing. Ready-to-move-in homes and gated communities are the most sought-after property types," said Rajan Bandelkar, President, NAREDCO.

24 million households in gated communities by 2026

According to a recent report by Redseer, the demand for gated communities in India is poised to soar, with a prediction that nearly 24 million households will call these communities home by 2026. Gated living extends far beyond just shelter; it offers a lifestyle enriched with amenities and exclusivity.

This shift in preference reflects changing priorities amongst modern Indian families and investors and is expected to have a lasting impact on the real estate market.

India's property market stayed positive in second half of 2023, with significant growth in both new property supply and sales in the top-eight cities during H1 2023, marking a year-on-year increase of 44 per cent and 15 per cent, respectively.

Security and exclusivity: The driving factors

Kunal Rishi, COO, Paras Buildtech, points out the heightened sense of security and exclusivity.

"Gated communities offer security, exclusivity, and modern amenities, making them a top choice for discerning buyers in 2023," he said.

Gated communities are not just a hit with millennials they are increasingly attracting senior citizens and nuclear families with children. Vineet Dawar, Senior VP, Sales & Strategy, Elan Group, emphasises that these developments offer a holistic living solution, aligning seamlessly with the aspirations of homebuyers.

In H2 2023, 64% of buyers prefer properties in gated communities | Image credit: Unsplash

Vivek Singhal, CEO, Smartworld Developers, commented, “In today's era, gated communities offer not just a place to live but also heightened ease of living as well. They provide a wide range of amenities such as captivating clubhouses, pool decks designed with children in mind, state-of-the-art gyms and fitness studios, versatile community halls, and integrated sports complexes that cater to the needs and desires of the modern generation. Millennials, with their high disposable incomes and inclination towards luxurious investments, are not only looking for a house but also yearn for the comfort and convenience of community living.”

Urban transformation

The country's urban centres are undergoing a transformation, attracting individuals from diverse social and economic backgrounds. This shift towards cosmopolitan hubs has led to rising aspirations and an increasing desire for improved lifestyles, a demand that well-maintained condominiums within gated communities are perfectly positioned to meet.

The prevalence of work-from-home arrangements and hybrid work models has played a significant role in reshaping property purchasing decisions. Homebuyers now seek properties that offer not only a comfortable living space but also proximity to essential amenities and a sense of security.

Challenges persist

Despite the surge in demand for gated communities, prospective homebuyers face challenges finding properties that align with their budgets and location preferences. The NAREDCO survey reveals that 52 per cent of potential homebuyers in the top eight cities struggle to find properties that meet their criteria, leading some to adopt a cautious "wait and watch" approach.

In the present market scenario, with most buyers being end-users, there's a strong inclination towards ready-to-move-in properties, even though they make up just a meagre 20 per cent of the 9.44 lakh unsold units in the primary market. Interestingly, developers are capitalising on this demand by charging premium prices, resulting in a notable annual increase in property values for this category.