With 'work from home' has become a new norm, people are gradually but consistently shifting towards spacious and upgraded residences. Recently, a quarterly report submitted by Square Yards also showed the increasing demand for 3 BHK and Larger homes in 2021. However, the report also mentioned that the rental trends are stuck to 1 and 2BHK units within a budget of Rs 10,000-20,000 per month. The report is based on the survey conducted in cities including, Pune, MMR, Gurugram, Noida, Bengaluru and Hyderabad. Read the complete report below at SURFACES REPORTER (SR):
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Home buying trends have been evolving ever since the pandemic took over the world. For the past two years sentiments of prospective home buyers have pendulated between the urge to own a home and trying to hold their savings under uncertain economic conditions. With improving economic conditions, buyers are gradually gaining back the confidence to invest.
There has been a consistent growth in demand for a little extra space in the form of an added room, flex rooms, or larger balconies, thanks to the changed working and living circumstances in the Covid era, says a report presented by India's largest integrated platform for Real Estate- Square Yards.
Increased Demand for 3 BHK and Larger Homes
The report says that more than 43 percent of online property searches were for 3BHK and larger houses in 2021 while 35% of the property seekers looked for a home-sized between 1000-2000 Sq. Ft. The report also says that 33 percent of the total online searches in Q4, 2021 for properties priced above Rs 1 Crore, which is said to be a rise of 6 percent from Q1, 2021.
Besides, independent homes are also gaining prominence in the last year recording a significant rise of 14% in demand since Q1, 2021. Out of all the cities involved in the report, MMR continued to be the most searched city in Q4, 2021 for both sales as well rented accommodations.
Also, there had been at least a 2% Q-o-Q rise in the demand for 4BHK and above configurations throughout the year. Irrespective of the diminutive increase in demand, what remains to be seen is whether this kind of demand is temporary or is set to stay, especially considering the staggering price points in MMR.
Housing Affordability is A Key Determinant
Though home buyers were on a hunt for larger and spacious homes in 2021, affordability remained the main determinant. However, the definition of affordability differed from one segment of buyers to another. 2 BHK units continued to constitute about half of the total transactions in the last quarter of 2021.
The sales share of 1 BHK and 3 BHK configurations appeared to put forth the same promising trend of “rising demand of spacious homes” as anticipated by realtors. As compared to the third quarter of 2021, the number of 1 BHK units sold dropped by 9% in the last quarter. On the other hand, the sales share of 3 BHK configurations in the fourth quarter increased by 5% as compared to Q3, 2021.
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Apartment Projects: The Most Preferred Property Type
As per the report, apartments remained the most preferred property type both at the supplier’s as well as the home buyers’ end. It formed 90% of the total online searches in Q4, 2021 while a whopping 97% of the total inventory was inclined towards apartment projects.
Barring Bengaluru, Hyderabad emerged as the only city to have a huge demand for independent homes as compared to apartments. The category recorded a 43% supply deficit in Q4, 2021. For now, both the buyer as well as seller mindsets seem to be aligned concerning independent homes.
Increased Demand for Affordable and Mid-Segment Properties
Most home buyers seemed to be comfortable with spending a little extra for their dream home, given that the ‘space’ quotient regained importance amidst the pandemic.
Similar to the trends in Q3, 2021, the maximum share of the inventory as well as the demand was concentrated in the Rs 30-60 Lakhs budget segment. Close to 75% of the residential listings in the city was for affordable properties priced below Rs 60 Lakhs in Hyderabad
As observed across quarters in 2021, nearly half of the online property searches were for homes in the mid-segment ticket size (INR 30 - INR 100 Lakhs) in Bengaluru. The share only seemed to grow as more homebuyers entered the market.
On the other side of the spectrum, preferences of homebuyers in MMR remained relatively constant in all four quarters. The share of mid-segment housing decreased from 50% of the total share to 44% and hovered around the same figure in the following quarters.
In Pune, the mid-segment category comprised 58% of the total inventory, further spread across the two ticket sizes: Rs 30-60 Lakhs and Rs 60-100 Lakhs. The number was slightly skewed towards the former category.
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With the upcoming Jewar airport lending a positive buzz to Noida, more buyers seemed to look for residential units in the city during 2021.
Noida not only gained momentum in demand for housing units but also asked for speedy completion of the ready-to-move-in properties. Thus, only under-construction properties formed a major portion of the unsold inventory.
Reverberating the same, more developers came up with spacious housing units under Rs 30 Lakhs(34%), closely followed by the ticket size Rs 30 Lakhs-Rs60 Lakhs (28%) in the fourth quarter of 2021.
In Gurugram, there is a10% rise in the supply of properties priced at Rs 30- 100 Lakhs, approbating the shift in focus of Gurugram developers to mid-segment properties. About 34% of the online searches in Q4 were for the ticket size of Rs 1-3 Crore. Similar to Q3, the price bracket of Rs 60-100 Lakhs and Rs 1-3 Crore continued to pick up the interest of home buyers as well as developers.
Source: Square Yards
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