The property report displayed a clear preference for larger homes on the buyers’ behalf. The current edition Jan-Mar 2015 of the report reveals that across all cities there is a shift in demand from 1 and 2BHK units to 3BHK units in the first quarter of 2015. Preference for larger housing units was also visible from the increased demand for residential houses and plots over apartments. However, this trend has been recorded in the previous quarter as well. What’s interesting to note is that the buyers did not seem too eager on increasing their budget to acquire a larger home. Across all cities, mid-range properties between Rs 40 lakh and 1 crore were preferred.
Commenting on the findings of the report, Ms E Jayashree Kurup, Head – Content & Research said, “We are proud to release the report, in view of keeping consumers abreast with the trends in the real estate market. The report highlights that consumer searches have picked up and people are looking for houses with larger area which fit into their budget. There is a preference shift towards independent and larger housing units across cities and this could be a precursor to more activities on ground in the coming festive season.”
Few key highlights of the report are:
The National Property Index has remained stable since the previous quarter. City Indices recorded a mixed trend in the Jan-Mar 2015 quarter with Noida registering the highest rise of 9 per cent while Mumbai recorded the highest drop of 6 per cent. Other cities that recorded a drop in index values were Chennai (-4%) and Ghaziabad (-3%).
Demand for 1 and 2BHK units dropped across all cities except in Coimbatore and Vadodara. On the other hand, a rise of 3-10 per cent was noted in the demand for 3BHK units across different cities.
In line with the previous quarter, demand for apartments dropped by up to 10% across cities except Bangalore, Coimbatore and Chennai to give way to rise in demand for plotted units and independent houses.
Across cities mid-segment properties priced at Rs 40 lakh to Rs 1 crore were most preferred. Supply in the market was inclined towards premium properties priced above Rs 1 crore. At the national level the Rs 30-50 lakh category remained the preferred range.
Rental markets were upbeat across all cities tracked. It was particularly upbeat in cities such as Delhi, Mumbai and Pune. Over 60 per cent localities across these cities recorded a rise in the average rental values. Bangalore and Kolkata continued to clock the highest rental returns in the country.