In the post-pandemic world, the city peripherals areas are front and centre on the radars of homebuyers. Supply lost no time in chasing demand and as much as 58% of about 1.49 lakh homes launched in FY21 are in the peripheries of the leading seven cities, says data by ANAROCK.
Many peripheral micro-markets where demand remained muted before the pandemic are now seeing renewed demand and supply. The previous desire to live in city centres - closer to workspaces, children’s school, etc. - has reduced markedly with the advent of WFH and e-schooling options in the post-pandemic world. People now prefer to live in bigger, open and green spaces in peripheries and that too at affordable rates.
In FY19, the share of new launches in the peripheral locations was approximately 51% of about 2.29 lakh home launched in these cities. In FY20, more than 2.07 lakh new units hit these markets and the peripheral areas accounted for a 53% share, it said.
Among these cities, Pune saw the most launches in its peripheral areas – 76% of 29,950 units launched in FY21 – led by Mulshi, Pirangut, Daund, Chakan, Chikhali, Kamshet, and Undri, among others.
“Homebuyer preferences changed perceptibly post the pandemic. The previous ‘walk-to-work’ concept no longer led to home-buying decisions – instead, bigger and more affordable properties in greener, less polluted areas found favour, driven by work-from-home and e-schooling compulsions as well as safety concerns. Developers quickly changed track and those with landbanks in the peripheries, and even otherwise, saw it an opportune time to launch new projects there,” said Anuj Puri, Chairman – ANAROCK Property Consultants.
New developments in the peripheries reduce the stress on the choked city-centres, and they become increasingly viable with ongoing infrastructure projects such as Metros and ring roads which will boost their connectivity to the city centres.
“It is very likely that some of the major office occupiers will soon de-centralize and bring their offices closer to their employees’ homes in these peripheries,” says Puri.
New launches in the peripheries
Unsurprisingly, new supply housing in these cities’ key peripheral micro-markets rose markedly between April 2020 to March 2021.
In Pune, the newly-launched supply in the peripheries was 76% of the total of 29,950 units launched in FY21. Among these areas are Mulshi, Pirangut, Ravet, Chakan, Chikhali, Wadgaon Budruk, Talegaon Dabhade, Dhanori, Punawale, and Undri. In FY19, their share of new launches was 67% of approximately 39,210 units launched then.
In MMR, the share of new launches in the peripheries was approx. 67% of a total of 34,620 launched units in FY21. In FY19, the ratio of new launches between peripheries and city centres was 60:40. Prominent outlying locations with high demand and supply include Panvel, Palghar, Visai, Virar, Kalyan, Badlapur, Bhiwandi, and Dombivli.
These eight localities alone saw new launches of 12,900 units which is 56% of the total new supply in peripheries within the period.
In NCR, approximately 19,090 units were launched in FY21, of which at least 57% were in the peripheral areas such as Sohna, Sohna Road, Greater Noida West, and Yamuna Expressway. In FY19, the peripheral supply share was 49% of a total of 29,500 units launched then. These four areas together saw more than 4,100 units launched during this fiscal period.
Sohna town, further areas on Sohna Road towards Sohna town and Greater Noida West are prominent areas in NCR that are seeing high demand for properties. In the post-pandemic world, homebuyers are now preferring to live in large, gated housing societies for safety and security concerns.
More than this, they are preferring housing societies that are self-sustained and can fend for themselves even during pandemic-like exigencies with minimal contact with outside world. And the localities mentioned above plus Yamuna Expressway have several options in this category.
In Chennai, the share of new launch units in the peripheries was 54% of a total of 10,110 units launched in FY21. Some of the prominent areas with new project launches during the period include Poonamallee, Avadi, Vandalur, Sholinagnallur, Guduvanchery, and Chengalpattu. In FY19, the peripheral supply share was 44% of the total 16,130 units launched then.
Bengaluru saw approximately 20,520 units launched in FY21, of which 46% was in the city peripheries. In FY19, the peripheral supply share was 37% of a total of 36,620 units launched. The prominent peripheral locations include Chandapura-Anekal Road, Chandapura, Sarjapura, Yelahanaka, Devanahalli, and Sarjapur-Attibele Road.
In Hyderabad, approximately 30,340 units were launched in FY21, of which at least 45% were in peripheral areas such as Medchal, Miyapur, Nizampet, Shamshabad, Kokapet, Patancheru, and Tellapur. In FY19, the peripheral supply share was 35% of total 18,460 units launched then.
In Kolkata, the share of new launches in peripheral locations was the lowest among the top 7 cities – just 26% of a total of 4,250 units launched in FY21. In FY19, the ratio of new launches between peripheries and city centres was 20:80. Prominent peripheral locations with high demand and supply include Barasat, Barrackpore, Serampore, Garia, and Howrah, the data said.