Mumbai, Bengaluru and Hyderabad to lead residential real estate recovery in India in 2022: report
While these three cities saw an increase in buyer activity after the second wave of the pandemic, Level II cities like Surat, Jaipur and Patna have seen the largest increase in property search volume in online in 2021.
At a time when home purchases have accelerated in the wake of record mortgage interest rates over the past 15 years and record affordability due to stable house prices, the mega-cities of Mumbai, Bangalore and Hyderabad are all poised to dominate the Indian residential market. real estate recovery in 2022, according to Housing.com.
According to Housing.com’s IRIS index, while these three cities saw an increase in buyer activity after the second wave of the pandemic, Level II cities like Surat, Jaipur and Patna are the ones that have recorded the largest increase in online property search volume in 2021. The index also lists its âcities to watch for residential demand growth,â which includes Tier II cities like Surat, Jaipur, Patna, Mohali, Lucknow and Coimbatore.
The IRIS index tracks the online property search volume of high-intent homebuyers. The index is a leading indicator of increasing residential demand in India’s 42 key cities.
âThe year 2021 has definitely been a year of positive change for residential real estate. In more ways than one, it has paved the way for a global turnaround in 2022, something all industry players – from government to real estate developers, and from banks to real estate investors – have been waiting for. We strongly believe that the strong dynamics in residential markets will continue through the calendar year 2022, provided that India is able to effectively deal with the threat of the spread of the Omicron variant, âsaid Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com.
âThe metropolitan cities of Mumbai, Bengaluru and Hyderabad will drive the recovery in residential demand in 2022. We are also seeing an increase in traction in Tier II cities such as Surat, Jaipur, Patna, Mohali, Lucknow and Coimbatore thanks to the continuation of remote work policies. . Buyers are now looking to larger homes and communities with access to better health services, safety and open spaces. Changing consumer preference for residential real estate, as well as digital penetration into the supply and demand value chain, will shape the market in 2022, âsaid AnkitaSood, head of research, Housing.com, Makaan.com and PropTiger.com.
Demand for larger housing and residential land is on the rise
The index from the Gurgaon-based company also shows that large homes will be the preferred option for homebuyers in 2022, as companies continue to offer remote work policies amid threats from Omicron variants. Data shows that search queries for apartments with a 3 + BHK configuration increased 15% year-over-year in 2021.
Due to the increasing demand for larger homes in the post-coronavirus world, the demand for land is also expected to become much stronger. In fact, there has already been a 42% year-on-year growth in residential land search queries in 2021, according to the IRIS index.
Since the price of any property is directly related to its size and amenities, searching online for properties with a ticket size greater than Rs 2 crore has also increased – 1.1 times as many queries have been made. registered on the index of high-end properties in 2021..
Proximity to health and safety infrastructure would remain two of the most important factors among potential buyers when selecting their dream properties, the index reveals, citing Housing.com consumer sentiment outlook data for 2022. .
Noida Extension Records Highest Share in National Online Property Search Volume
Even though NCR has received negative publicity due to project delays and developer insolvency, Noida Extension in Noida will see significant interest from homebuyers in the coming year, according to the index. Noida Extension took the maximum share of the national online property search volume this year, as recorded by the index. This is mainly due to the comparative affordability of the region, as well as the fact that the center and the UP government have announced several mega infrastructure projects for this region in the recent past.
Rental activity to pick up in Mumbai, Bangalore and Delhi
Housing.com’s IRIS index also indicated that the rental market in the mega-cities of Mumbai, Bengaluru and Delhi could get back on track in 2022, as companies hire more. In 2021, these three cities took the maximum share of the online search volume for rental accommodation.
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.