With the increased focus on vaccination and quick re-opening of the economy, sales are likely to recover to the pre-Covid levels in the short-to-medium term. This is because the underlying demand for homes has remained intact, driven by factors such as multi-year low-interest rates, offers and discounts doled out by developers, concessions on stamp duties, and other incentives provided by state governments.
Explaining the same, Kapil Banga, Sector Head & Assistant Vice President at ICRA said, “The impact of the second wave has been lower than that witnessed in the first wave due to various factors including the continuing work-from-home by many salaried employees, more localised lockdown restrictions and, a higher degree of certainty regarding future income levels and stability. The preference for bigger and better homes is also supporting second-home purchases which had remained low in the previous years. Though the second wave has dented the market following a good recovery curve in H2 FY2021, a similar recovery curve is expected in the second half of FY2022 as well.”
Against this backdrop, we took a stock of homebuyers’ preferences in August 2021 across five cities, namely Bangalore, Chennai, Hyderabad, Pune, and Coimbatore. Based on the user activity on RoofandFloor and information collected by extensive surveys and calls, here are some insights:
- Villas were the most preferred property type in Chennai and Coimbatore. While Bangalore and Hyderabad recorded good interest for plots in August 2021.
- Home seekers in Chennai and Pune are more inclined towards properties priced below Rs 40 Lakh.
- In terms of BHK configurations, home seekers in Bangalore, Chennai, and Coimbatore prefer 2BHKs. Interestingly, people in Hyderabad preferred 3BHKs while in Pune, 1BHKs stole the show in August 2021.
- To ensure transparency in real estate transactions, the state government will soon start issuing digitally signed khata certificates in Bangalore.
- The state government plans to introduce an amendment bill to formalise its decision of reducing stamp duty from 5% to 3% for flats priced between Rs 35 Lakh and Rs 45 Lakh. The cut was announced earlier.
- Property values in Karnataka may increase soon as the government is looking at revising guidance values. A Central Valuation Committee (CVC) is currently assessing guidance values in all districts.
Property type: Let’s begin with the preferred property type. As always, apartments ruled the roost in Bangalore with 65%. It must be noted that this interest has increased by 11% when compared to July 2021. With a good percentage of buyers being from the service sector, the demand for apartments has always been high in the city.
About 25% of users showed interest in plotted developments in Bangalore. 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 44% of home seekers were looking for properties in Rs 40 – 80 Lakh price range, followed by properties in the affordable segment (<Rs 40 Lakh)
It must be noted that interest for luxury (Rs 80 Lakh- 1 Crore) and ultra-luxury properties (Rs 1-3 Crore) recorded cumulative interest from about 34% of home seekers.
BHK: 3BHKs continue to steal the show in Bangalore even in August, with a whopping 55% of users showing interest in large spaces. This was followed by 2BHKs with 38% interest and 4BHKs with 4% interest.
- JP Nagar
- Electronic City
- Residents of Chennai can now get the building permits within 30 days of submitting the application. Additionally, the city corporation is also planning to move the entire process online to avoid any hassles.
- State municipal administration department has urged all municipalities and corporations (other than the Greater Chennai Corporation) to ensure that their services are offered online for the public. When implemented, residents of Avadi corporation, Pallavaram municipality, Tambaram municipality, Sriperumbudur town panchayat, and others will be able to pay property tax online.
- IndiQube, a flexible-space provider, has signed up a 30,000 sq. ft. managed office space in Guindy. The centre is a standalone property with a capacity of 600 seats.
Property type: Unlike Bangalore, Chennai saw maximum interest for villas and independent homes. According to RoofandFloor research, about 37% of home seekers were looking to buy villas. Interestingly, both apartments and plots recorded interest from 32% of users each.
Budget: In terms of budget, the user interest was skewed towards affordable properties (Less than Rs 40 Lakh) with 55%. Reiterating the same, Suresh Babu, GM, VGN Projects Estates said, “Home seekers in Chennai are still looking for properties in the affordable segment. A good percentage of enquiries, that we get, are for properties priced between Rs 30-35 Lakh.”
This was followed by properties in the mid-segment (Rs 40-80 Lakh) with 35%. Luxury properties recorded minuscule interest in the city.
BHK: Homes in 2BHK configuration clocked maximum user interest in Chennai. RoofandFloor’s research indicates that about 62% of users were looking for 2BHK homes, while about 26% of users were interested in 3BHKs.
Interestingly, 12% buyers also showed interest in compact 1BHK apartments.
- Old Mahabalipuram Road (OMR)
- Grand Southern Trunk Road (GST)
- Over 280 flats were inaugurated under the ‘dignity housing scheme’ in Hyderabad last month. These 2BHK homes are built on nine floors at a cost of Rs 25 crore and are located at Pilligudiselu, Saidabad in Hyderabad.
- Sumadhura Group will invest Rs 1,500 Crore in the next four years in Hyderabad.
Property type: Hyderabad has good demand for all three property types. Apartments ruled the roost with 41% user interest, followed by villas and plots.
Budget: In terms of budget segmentation, properties in mid-segment saw a maximum interest from 37% users, followed by properties in the affordable segment with 26%. Luxury and ultra-luxury properties recorded cumulative interest from 36% users.
BHK: According to RoofandFloor research, about 60% of home seekers were looking for homes in 3BHK configuration, followed by 2BHKs with 31%. Homes in larger configurations such as 4BHK also saw some interest in Hyderabad.
- The deadline for submitting suggestions and objections on the Development Plan (DP) of the Pune Metropolitan Region Development Authority has been extended till September 16.
- About 98% of the land required for the Hinjewadi-Shivajinagar Metro corridor had been acquired. The project start date will be announced soon, post which it will take about 40 months to complete the project.
- Inspire Co-spaces, a flexible office space provider, has set up its new co-working space spread over 50,000 sq ft in Kalyani Nagar. It houses 1,000 seats, each priced between Rs 6,000-10,000.
Property type: Like other metro cities, apartments dominate the property spectrum in Pune too. About 57% users showed interest in apartments in August 2021, followed by plots with 37%.
Budget: In Pune, affordable properties showed a clear majority with 78% users showing interest in properties priced within Rs 40 Lakh. Further, about 15% users were looking for mid-segment properties. The interest for premium properties was insignificant.
BHK: In terms of BHK configurations, compact 1BHKs ruled the roost with 59% 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 36%.
- The city corporation has decided not to collect a security deposit from the residents for building approvals if they have already obtained a nod from the local planning authority.
Property type: Coimbatore has a high demand for villas and independent homes with 68% user interest, followed by plots with 21%. The apartment culture is also slowly catching up in the city. In August, about 11% of users showed interest in apartments.
Budget: Home seekers in Coimbatore prefer properties in the mid-segment. For 46% users, properties priced between Rs 40-80 Lakh is the most preferred, followed by homes priced less than Rs 40 Lakh.
BHK: In terms of BHK preferences, 2BHK stole the show in the city with 62%, followed by 3BHK and 1BHK with 27% and 7%, respectively.
- Mettupalayam Road
- Avinashi Road
(Note: The data used in this post is for August 2021 and has been collected based on user activity on RoofandFloor, extensive surveys, and calls.)