Determinants of Residential Real Estate Demand in India's Hybrid Work Economy

Omkar S Math

omkarmath8@gmail.com

Dayananda Sagar College of Engineering

Dr. Rahul Kargal

rahulkargal-mba@dayanandasagar.edu

Department of Management Studies Dayananda Sagar College of Engineering

Abstract

The rapid adoption of hybrid work models following the COVID-19 pandemic has significantly transformed residential real estate demand in India. As organisations increasingly embrace flexible work arrangements, homebuyers' preferences have shifted towards larger living spaces, dedicated home offices, improved digital infrastructure, and residential developments located in suburban and peripheral urban areas. These evolving lifestyle and workplace dynamics have created new opportunities and challenges for real estate developers, investors, urban planners, and policymakers. Although previous studies have examined residential property demand and changing housing preferences independently, limited empirical research has explored the combined influence of hybrid work-related factors on residential real estate demand within the Indian context.

This study investigates the influence of selected hybrid work-related variables on residential real estate demand in India. Using primary data collected through a structured questionnaire administered to working professionals across selected metropolitan cities, the research evaluates the relationship between Residential Property Purchase Intention (dependent variable) and four explanatory variables: Hybrid Work Frequency, Household Income, Distance from Workplace, and Home Office Requirement. Descriptive statistics, Pearson correlation analysis, and Multiple Linear Regression were employed to examine the significance and direction of these relationships.

The empirical findings indicate that Hybrid Work Frequency and Home Office Requirement are the most influential determinants of residential property purchase intention, exhibiting positive and statistically significant relationships with housing demand. Household Income also demonstrates a positive influence on residential purchase decisions, while Distance from Workplace exhibits a comparatively weaker and statistically less significant effect, reflecting the reduced importance of daily commuting under hybrid work arrangements. The proposed regression model explains a substantial proportion of the variation in residential property purchase intention, suggesting that changing work patterns, lifestyle preferences, and socioeconomic characteristics collectively influence housing demand in India's evolving real estate market.

The study contributes to the existing literature by providing an integrated empirical framework for analysing the impact of hybrid work on residential real estate demand using multiple explanatory variables simultaneously. The findings offer practical insights for real estate developers in designing hybrid-work-friendly residential projects, assist investors in identifying emerging housing trends, and provide evidence to support policymakers and urban planners in developing sustainable and future-ready residential communities.

Keywords: Hybrid Work; Residential Real Estate Demand; Housing Preferences; Residential Property Purchase Intention; Home Office Requirement; Multiple Linear Regression; Indian Real Estate; India.