Decline in the “Uberization” trend in the residential sector

In recent years, the housing sector has seen a clear shift away from the “Uberization” trend, which favored renting over owning a home. This trend, reflecting the disruptive impact of ride-sharing services like Uber on the transportation industry, was gaining momentum, especially among younger generations who valued flexibility and were concerned about the long-term commitments of home ownership. However, recent data and insights suggest a noticeable shift in consumer preferences post-COVID, indicating a return to the desire to own a home.

Anshul Jain, general manager for India and Southeast Asia at Cushman & Wakefield, highlights this shift. “Demand for housing in India was quite subdued between 2013 and 2019, and prices remained stable. During this period, there has been a significant inclination towards renting, especially among young people who did not want to commit to owning a property,” he stated in a recent video interview with PTI. “However, the Covid-19 pandemic has fundamentally changed this attitude. People have realized the stability and security that comes with owning a home. Demand for larger homes and a low interest rate environment post-pandemic have further fueled this trend,” he added.

This sentiment is shared by industry leaders from major real estate groups. Mohit Goel, Managing Director, Omaxe Group, noted, “The pandemic has forced people to rethink their priorities. The value of having a stable and safe home environment has become paramount. We have seen a significant increase in inquiries and sales as people look for long-term security.”

Similarly, Deepak Kapoor, director, Gulshan Group, noted, “Flexibility has been the key driver for rentals. However, the uncertainty caused by the pandemic has shifted consumer preferences back toward homeownership. There is a renewed sense of investing in the future, which is driving the market.”

Rajjath Goel, Managing Director, MRG Group, offered further observations: “The Uberization trend, while significant for some time, has always been limited by the inherent need for ownership, especially in a country like India. The post-Covid-19 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 also confirmed by Ankush Kaul, business director, Ambience Group, who said: “We have observed a clear change in market dynamics. Demand for high-quality housing has increased, and consumers are more willing to use reputable construction companies that can keep their promises. The Uberization trend was never a lasting change, but a response to the economic and social conditions of the time.”

According to market reports, the housing market in India has witnessed a sharp recovery post Covid-19. Sales reached an all-time high last year, with prices in eight major cities rising by an average of 10 percent annually. In some micro markets, prices have increased by 40-70 percent in the last two years. This growth is driven by end-user demand and a shift towards reputable manufacturers with proven experience.

Cushman & Wakefield’s Anshul Jain notes that while there has been a sharp rise in prices following the Covid-19 pandemic, the market is expected to stabilize with nominal growth in the coming years. “We are already close to the top of the market. Prices have risen sharply, but in the future we can expect greater stability and nominal growth driven by normal market parameters such as inflation and steady demand,” he explained.

To sum up, the housing sector is seeing a decline in the “Uberization” trend as interest in home ownership increases. The Covid pandemic has played a key role in shifting consumer priorities, placing an emphasis on the security and stability of home ownership. As the market stabilizes, we continue to focus on delivering high-quality housing to meet growing demand, reaffirming the long-term value of home ownership in India.