The report titled “India Residential Overview” for the period Oct-Dec 2021, captures the yearly estate trends of 2021, in addition to providing insights based on the supply-demand trends recorded in the last quarter. The home-buying trends seem to have undergone significant changes and all for good reasons. Let’s dive deeper for more insights.
The year 2021 no doubt had been the “year of recuperation” when the economies around the world emerged strongly by realigning their market strategies.Despite the second wave of COVID slowing down the growth in the second quarter of 2021, demand in the real estate sector picked up pace.
2021 was a year that saw a large number of home buyers entering the market with the intent of purchasing their “dream home” as per the revised requirements of surviving in pandemic era. And report titled “India Residential Overview” approbated the same. With the “work-from-home” scenario being widely accepted and promoted, 43% of the property searches in 2021 were for 3BHK and above configurations clearly highlighting the growing need for space at homes.
Spacious home units which were once considered as “luxury” have now become a “necessity” of which home buyers are aware of. Apart from it, mid-segment at large (home units worth Rs 60- Rs 100 Lakhs) remained the major driver guiding the home buyers’ sentiments with at least 50% share of the demand in each quarter of 2021. However, in the last quarter, the demand for home units worth more than Rs 1 Crore inched up marginally indicating the shift larger homes.
Home buying demand tilted towards larger units
Though at large the home search trends in most of the top cities during Q4, 2021 were similar to the third quarter, however, the gradual shift in preferences cannot be overlooked. In Q4, 2021, despite the mid-segment being home to a major chunk of demand, the premium segment (properties above Rs 1 Crore) also comprised one-third of the total demand share. The searches for 2BHK units also displayed a downward trend, leaving more space for “larger homes”. Another trend that became more prominent in the last quarter of 2021 was the emergence of peripheral locations as a preferred choice for home buying.
For the luxury segment (home units of size more than 4000 Sq. Ft.), the demand was mainly concentrated in the southern cities with Hyderabad and Bengaluru accounting for 22% and 35% of the total online searches respectively.
What was developers/ builders take?
Despite the festive season in the last quarter, as anticipated there were fewer changes in the offerings by developers. As the residential segment was already flooded with more homebuyers, developers seemed to opt for tweaking the inventory, in spite of focusing on discounts and offers. This might also be due to the government incentives and external factors that have already made the real estate markets more conducive for buyers.
In line with this, more builders/developers came up with new launches in the top cities in the suburbs and peripheral regions. The Oct-Dec 2021 quarter saw the launch of nearly of 50,000+ residential units in the top six cities. MMR accounted for 29% of the total launches while Hyderabad followed suit with 23% of the share.
Read the detailed demand and supply analysis for all top six cities in our latest quarterly report titled “India Residential Overview: Oct-Dec, 2021” here.
