After the first wave of Covid-19, residential real estate recovery picked up, as seen in the last two quarters. After all, one of the major aspects that emerged out of the cloud of uncertainties last year was the importance of homeownership. Additionally, many existing homeowners entered the market to upgrade to larger homes where they can live and work comfortably.
Against this backdrop, it was imperative to take stock of how residential markets have reacted in June 2021. Based on the user activity on RoofandFloor and information collected by extensive surveys and calls, here are some insights:
- Apartments were the most preferred property type in Bangalore, Hyderabad, and Pune.
- Properties in mid and affordable segments continue to attract home seekers.
- In terms of BHK configurations, 2BHK and 3BHK saw maximum user interest in June 2021.
Bangalore
Property type: Let’s begin with the preferred property type. As always, apartments ruled the roost in Bangalore with 69%. With a good percentage of buyers being from the service sector, the demand for apartments has always been high in the city.
Interestingly, plotted developments were the second most searched property type, followed by villas. While apartments have changed the skyline of Bangalore, a good percentage of buyers still prefer plots to construct their homes. And with the current virus outbreak, this number is likely to increase in the near term as more and more people will now prefer to have their own space.
Budget: Moving to budget, homes in mid-segment were most preferred. About 39% of home seekers were looking for properties in Rs 75 Lakh-1 Crore price range, followed by properties in Rs 40-75 Lakh. It must be noted that interest for ultra-luxury properties (Rs 1-3 Crore) in Bangalore is more than affordable properties (<Rs 40 Lakh).
BHK: 3BHKs emerged as the showstopper in Bangalore, with a whopping 69% of users showing interest in large spaces. This was followed by 2BHKs with 25% interest.
“Homebuyers now prefer buying spacious apartments in self-sustained developments. There has also been a keen interest in villas, as this serves the purpose of a standalone home but at the same time is within a community with a host of amenities. Serious buyers are showing greater affinity towards ready-to-move-in and projects nearing possession,” says Anjana Sastri, Director – Marketing, Sterling Developers.
Popular localities
- Whitefield
- Electronic City
- JP Nagar
- Hebbal
- Devanahalli
Chennai
Property type: Unlike Bangalore, Chennai saw maximum interest for villas. According to RoofandFloor research, about 37% of home seekers were looking to buy villas, followed by apartments and plots with 34% and 28%, respectively.
Chennai has been a traditional market where many prospective buyers still prefer independent homes over apartments.
Budget: In terms of budget, the user interest was skewed towards affordable properties (Less than Rs 40 Lakh) with 49%, followed by properties in the mid-segment (Rs 40-75 Lakh) with 39%.
Considering that the majority of home seekers were looking for villas, you must be wondering – is it even possible to buy a villa within Rs 40 Lakh? Well, yes. On RoofandFloor, there are several villas in this price range. Check here! However, these properties are located on the outskirts of the city.
It is interesting to note that real estate builders in Chennai are trying their best to cater to the buyers’ needs. While villas in other metropolitan cities are usually associated with higher BHK configurations, Chennai boasts of villas in smaller configurations of 1 and 2BHK.
BHK: Homes in 2BHK configuration clocked maximum user interest in Chennai. RoofandFloor’s research indicates that about 61% users were looking for 2BHK homes, while about 31% users were interested in 3BHKs.
Popular localities
- Old Mahabalipuram Road (OMR)
- Grand Southern Trunk Road (GST)
- Porur
- Avadi
- Mogappair
Hyderabad
Property type: Hyderabad has decent demand for all three property types. Apartments ruled the roost with 44% user interest, followed by villas and plots.
Budget: In terms of budget segmentation, properties in mid-segment saw a maximum interest from 35% users, while properties in the luxury segment and affordable segment recorded similar user interests with 22% and 21%, respectively.
BHK: The popularity of 3BHKs in the City of Nizams is inching to a new high every passing year. According to RoofandFloor research, about 57% of home seekers were looking for homes in 3BHK configuration, followed by 2BHK.
“3BHKs are the most popular configuration in the city. The prevailing Covid-19 pandemic has changed the way consumers approach buying real estate. As remote working becomes the norm, homebuyers are looking for larger spaces,” says Rakesh Reddy, Director, Aparna Constructions & Estates.
Homes in larger configurations such as 4BHK also saw some interest in Hyderabad.
Explaining further, Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants says, “These larger homes are a good option for homebuyers who either already have a large family or foresee having a large family. These are also preferred by homebuyers who have gotten out of the ‘upgrading’ cycle and are very confident of their neighbourhoods.”
Popular localities
- Gachibowli
- Shamshabad
- Kompally
- Patancheru
- Miyapur
Pune
Property type: Like other metro cities, apartments dominate the property spectrum in Pune too. About 87% users showed interest in apartments in July 2021, followed by plots and villas.
Budget: In Pune, affordable and mid-segment properties are highly preferred. According to our research, about 75% of users were looking for properties within Rs 40 Lakh, while 22% users were looking for properties in the range of Rs 40-75 Lakh. The interest for premium properties was insignificant.
BHK: In terms of BHK configurations, compact 1BHKs ruled the roost with 60% interest. This can also be correlated with the fact that maximum users are looking for properties within Rs 40 Lakh. Homes in 2BHK configuration also recorded decent user interest with 37%.
Residential units in a smaller configuration are the fastest-selling as they are mostly geared towards mid-income homebuyers. Being the lowest entry point for investors, these homes have a high sales velocity. Additionally, when you compare monthly rental values to Equated Monthly Instalments (EMIs) in prominent localities in the city, the difference is negligible. “Most of the banks are now offering home loans at all-time low-interest rates. Since the home loan interest rates are favourable, homebuyers are trying to mint the benefits of these offers,” explains Annuj Goel, MD, Goel Ganga Developments.
Popular localities
- Hinjawadi
- Chikhali
- Wagholi
- Moshi
- Ravet
Coimbatore
Low cost of living, less pollution, and good connectivity make Coimbatore an ideal destination for homebuyers. Apart from this, Coimbatore is also known as an education hub with over 70 engineering, arts, and sciences colleges. Here’s what home seekers in Coimbatore are looking for:
Property type: Coimbatore has a high demand for villas with 74% user interest, followed by plots with 18%. The apartment culture is also slowly catching up in the city. In June, about 8% of users showed interest in apartments.
Budget: Home seekers in Coimbatore prefer properties in the affordable segment and mid-segment. For 71% users, less than Rs 40 Lakh is the most preferred budget, followed by Rs 40-75 Lakh for 23% users. Not to mention, the capital values in the city are still realistic.
BHK: In terms of BHK preferences, 2BHK stole the show in the city with 67%, followed by 3BHK and 1BHK with 18% and 15%, respectively.
Popular localities
- Saravanampatti
- Mettupalayam Road
- Avinashi Road
- Kovaipudur
- Ramanathapuram
(Note: The data used in this post is for the month of June 2021 and has been collected based on user activity on RoofandFloor, extensive surveys, and calls.)
