3rd December, 2019: Affordability, availability, connectivity and social infrastructure of localities are the key factors that are driving a strong consumer demand for residential real estate in India’s top-10 most searched localities in Q3 2019. Magicbricks has come out with an extensive Report on India’s housing demand trends that features localities like Noida Extension, Mira Road (Mumbai) and Wakad (Pune) among the top-3 most preferred localities in India.
Pune was one of the top-performing residential markets with three of its localities, Wakad, Baner and Pimple Saudagar, featuring among the Top-10 list of most searched and preferred localities by consumers for buying.
Magicbricks research suggests that Wakad is likely to continue to see a steady residential demand, as more and more IT companies pour in Hinjewadi.
· The locality has an average asking price of Rs. 6,650/sqft, witnessing 1% increase in the last one year
· The average apartment size is 1170 sq ft, second-lowest amongst the top 10 localities
· 75% of consumer searches for 1 and 2 BHKs, with 2 BHKs alone attracting 62% of the buyer preference
· 75% of the buyers looking for unfurnished properties, preferring cheaper options amongst the properties available.
Baner has witnessed a resurgence in real estate prices in the last three quarters as premium under-construction projects are generating buyer demand.
· The property prices in Wakad average at Rs.7,500 per sqft, the 3rdhighest amongst the top 10 localities. It witnessed 1% increase on a QoQbasis
· 83% of consumer searches for multi-storey, while rest of the consumer searches going to villas and independent houses
· Baner witnessed significant consumer searches for 3 BHKs, a rarity amongst the top 10 localities by consumer searches.
Pimple Saudagar, Magicbricks data suggests that it has witnessed resurgence in real estate prices in the last 3 quarters, as premium under-construction projects generate buyer demand.
· The locality has an average asking price of Rs.7,110 per sq.ft ., witnessing increase of 1% since last year
· Magicbricks data suggests only 5% of consumer searches for under-construction units, lowest amongst the top 10 localities, as Pimple Saudagar, being a developed locality, is mostly attracting buyers interested in ready units.
· 80% of the Buyers are looking for unfurnished houses, suggesting that the buyers are interest in cheaper options within the locality
· 45% of searches are for 2 BHKs, as it gets a majority of its demand from IT professionals looking for affordable housing options.
Commenting on the report, Mr. Sudhir Pai, CEO, Magicbricks, said: “We are witnessing increased consumer demands in markets that are developed, affordable, well connected and have a steady supply of ready-to-move-in apartments. Government’s push towards affordable housing and incentives through tax breaks have also acted as a catalyst to create demand. Home buyers continued to prefer ready-to-move in apartments, with eight out of the top ten localities witnessing more than 75% of consumers searching for ready to move-in apartments. Most localities in top-10 list also witnessed price increase due to launch of premium projects in higher price brackets.”
Revising the definition of ‘affordable housing’, was a major push for an increase in the consumer demand in residential properties. This has resulted in an increase in the customer interest across the country in residential realty and strengthened the access to transparent information flow.
For the report, Magicbricks tracked the consumer preference across the top 100 cities in India to gauge the demand potential for various localities. The analysis throws light on the recent housing and consumer trends in the current macroeconomic environment. Accordingly, the top-10 localities in India by consumer search for Q3 2019 were identified.