While 3BHK configurations formed more than 40% of the residential supply in Bengaluru and Gurugram following demand for larger housing units after three waves of COVID-19, 2BHK units continued to be the most preferred by homebuyers in Q1 2022 with 42% of the total demand share, a new report has said.
The demand for 1BHK units is also inching up. The recent announcements of property tax waivers on smaller configurations in MMR and adjacent areas and speculations around expected property price appreciation are the most likely factors behind the trend, showed a report by Square Yards titled ‘India Residential Overview: Jan-Mar 2022.
Also Read: Will court-monitored housing supply help rationalise real estate prices in Noida?
Even though home buying trends in the post-Covid era has been largely influenced by the need for space, health and wellness amenities, demand trends in Q1, 2022 shifted slightly towards smaller units. The first quarter of 2022 recorded a 42% share of the total online searches for 2BHK units, a small rise of 3% as compared to Q4, 2021, whereas demand for 3BHK homes dropped slightly, it said.
However, this shift seems to be completely transient. The most probable reason for this seems to be the tendency of home buyers to go for properties within the affordable to the mid-segment range to avoid any further delay in finalizing deals as speculations of a price hike across property markets are ripe, it noted.
The report captures the trends of the housing market amidst the changing buyer preferences under the influence of a few policy reforms, expected price appreciation, and demand-supply dynamics.
The cities covered in the report include Hyderabad, Bengaluru, MMR, Pune, Noida, and Gurugram.
In Q1, 2022 the residential segment in the top six cities recorded the launch of more than 81,000 new housing units, resulting in a significant rise of 43% compared to the last quarter of 2021, the report said.
Among the top six cities, MMR once again dominated the new launches accounting for 35% of the total share, followed by Hyderabad. The city has, over the past two years, gained traction from significant developers, comprising one-fourth of the total new residential projects in the first quarter of 2022.
The number of new project launches in the top six cities recorded a quarterly rise of 43%, with MMR once again bagging the highest share of 35%, followed by Pune which accounted for 25% of the total new launches. With a 26% share of the total online searches in Q1, 2022, MMR was the most searched city, closely followed by Hyderabad at 22%.
Mid-segment properties in the budget bracket of Rs 30-60 lakhs and Rs 60-100 lakhs were the most searched by online property seekers in Q1, 2022.
Independent homes are once again in vogue with a 27% share of the total property searches across the top six cities. Southern cities namely Hyderabad and Bengaluru lead the searches with about 42% demand each for independent homes in the cities during the Jan-Mar 2022 quarter.
Demand for luxury and ultra-luxury residential spaces (more than 3000 sq. ft.) was more prominent in Bengaluru and Gurugram with 12% and 8% share respectively, for the total online searches recorded in these cities.
Despite new launches gaining momentum in the other top cities, with 2100+ new housing units launched in Q1, 2022 in Noida, a drop of 14% was observed as compared to the last quarter of 2021. Also, Noida Expressway, which witnessed the maximum number of launches in the city in the previous quarter,
constituted only a quarter of the total share of the new projects. Noida Central on the other hand bagged about 44% of the new project launches, followed by the sectors in Noida Extension.
In line with the strong residential activity witnessed in the previous quarters, the first quarter of 2022 also saw the launch of more than 3800 new residential units in Gurugram.
However, as far as the distribution of new projects was concerned, Dwarka Expressway retained its position of being developers' favorite constituting 85% of the total share, with very less contribution from other zones of the city. This was distantly followed by Golf course road which accounted for only 9% of the total new launches.
Approbating this sentiment, demand for mid-segment properties in the first quarter of 2022 formed half of the total online searches, followed by properties. Demand for the premium segment (properties worth more than Rs 1 crore) however, can be expected to pick up in the upcoming quarters, with the need for spacious housing units and rising property prices largely influencing buyer sentiments, it said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
