While it was expected that localities close to employment hubs would lose their sheen in the Covid era due to the emerging work-from-home culture, the latest research data by Square Yards suggests otherwise. As per the Q4, 2021 data, residential localities near employment hubs are still popular amongst prospective home buyers. In this article, Square Yards research takes you through an in-depth city-wise analysis for a more comprehensive understanding.
With the pandemic spreading like wildfire, the demand for properties saw a new high in 2021. The financial instability and job losses faced by most working professionals led to the need for a more permanent solution of buying a house as compared to rental properties.
Further, COVID 19 also led to the return of citizens working abroad who also searched for homes for sale in the country fuelling the fire of property purchase even more. Interested buyers were actively exploring more options, as a result of which house sale enquiries were also on the rise.
Location has always been a key driving factor for real estate purchases. In this article, Square Yards takes a look at the most searched locations for residential properties in 2021 across the six major cities in India, namely Mumbai Metropolitan Area (MMR), Hyderabad, Bengaluru, Pune, Gurugram, and Noida. Unlike what was expected, locations close to employment hubs still continue to be on home buyers’ radar.
Note: This research on most preferred property localities in India is based on the listings at squareyards.com, including the six metropolia of Bengaluru, Hyderabad, Noida, MMR and Pune.
Table of contents
MMR Remains the Most Searched City for Residential Properties
According to Square Yards research, among the top six cities studied, Mumbai Metropolitan Area (MMR) had the maximum number of property searches in 2021 at 37 percent share. Gurugram and Noida, on the other hand, were at the lowest with nine percent and eight percent, respectively.
The demand for residential property for sale in MMR was relatively untouched by the crippling effect of the Covid 19 pandemic, as compared to other cities in the country. Regardless of the high property prices compared to other cities, the increase in demand for property in the area can be attributed to the fact that Mumbai is one of the largest drivers of economic growth in the country, along with it being the financial capital.
Further, because of the pandemic, MMR’s property prices had experienced a new low. Before the Covid-19 pandemic, it was estimated that the average property prices in MMR will experience a marginal increase in 2020.
However, the imbalance in demand and supply during the pandemic meant that the developers were beset with the problems of unsold inventory, which led to developers offering attractive offers and discounts to prospective buyers. In addition, the stamp duty concessions and low home loan rates had also greatly reduced the home acquisition cost in MMR – something which was previously unheard of.
Subsequently, Hyderabad (18 percent), Bengaluru (17 percent), and Pune (11 percent) were almost at par with each other in terms of residential property enquiry in 2021.
The demand for buying a house in Hyderabad and Bengaluru can be linked to the rapid infrastructural development of the cities. The sentiments of the buyers in these areas are similar owing to the higher purchasing power of the citizens.
Along with the rapid infrastructural development, real estate developers with a clean track record have also done well in terms of launching new projects in these cities, which led to a surge in house sale demand post the Covid 19 pandemic.
The residential real estate market of Pune was one of the top performing markets in 2021. However, much like the neighbouring MMR area, the pace of the market recovery was also greatly affected by the second wave of the pandemic. The comparatively low demand in property in the city was mainly due to the fact that the Pune real estate market took the majority of the brunt of the pandemic amongst the top-cities in the country.
City-Wise Analysis of Top Searched Localities’ Percentage Share in 2021
Given below is the city-wise analysis of the property search trends in 2021.
MMR
The top 10 most searched localities in MMR for residential properties in 2021 were Mira Road,
Virar West, Borivali West, Goregaon West, Nalasopara West, Andheri West, Malad West, Naigaon East, Kandivali East, and Chembur.
Square Yards research showed that five of the top 10 localities in Mumbai (Borivali West, Goregaon West, Nalasopara West,Andheri West, Naigaon East) are situated in the western suburb areas of MMR. Further, two locations (Mira Road and Chembur) are located on the Mumbai Harbour Line. The preference for locations in the western suburbs can be attributed to the superior intra and inter city connectivity.
As per Square Yards listing, the average property price range in the top 10 most searched locations in MMR starts from ₹12,452/Sq. Ft. to ₹ 25,707/Sq. Ft. Mira Road was seen as the most affordable locality in the list of most preferred locations while Borivali the most expensive. Some of the most popular property types in these locations in 2021 were multistorey apartments, builder floor apartments, penthouses, and studio apartments.
The factors that made these areas so attractive to prospective buyers is the superior infrastructure and the unique amalgamation of commercial and residential properties. While Dadar West and Andheri West are two of the most poshest areas in MMR, Malad West and Mira Road continue to be the most sought after for affordable housing options.
Hyderabad
As per Square Yards research, the top 10 localities that potential homebuyers searched for in Hyderabad are ECIL, Dammaiguda, Kukatpally, Attapur, Manikonda, Alwal, Boduppal, Beeramguda, Miyapur, and Malkajgiri.
On further research, we found that out of the top 10 localities in Hyderabad, the majority of the residential property searches were concentrated in the north-western region of the city (Malkajgiri, Miyapur, Dammaiguda, and Beeramguda). Two of the locations (ECIL and Kukatpally) fall within the outer Hyderabad city limits, while Attapur, Manikonda, and Boduppal are located in the South, West, and East part of the city, respectively.
The higher concentration of localities in demand in the north-western region can be attributed to the upcoming infrastructure projects that are set to reduce the traffic congestion coming in from the main city. Subsequently, ECIL and Kukatpally have experienced an increase in demand for residential properties owing to their proximity to prominent IT hubs, which made them a preferred location for working professionals in 2021.
As per Square Yards data, prospective buyers could acquire a property in these 10 localities in Hyderabad at an average starting price of ₹ 2,000/ Sq. Ft. to ₹ 3,000/Sq. Ft.
All of these 10 areas have emerged as one of the most popular options for prospective buyers for buying a home because of their superior infrastructural facilities, and easy connectivity to adjoining IT hubs. Apart from being a commercial hub, Attapur is also a major educational hub, with many prominent educational institutions in close proximity. Further, Manikonda which is one of the most rapidly growing areas in Hyderabad, has emerged as one of the preferred locations due to low property prices.
Bengaluru
According to Square Yards research, Whitefield, Sarjapur, Sarjapur Road, JP Nagar, Vijayanagar, Margondanahalli, RT Nagar, Jayanagar, Ramamurthy Nagar, and Yelahanka have emerged as the top 10 preferred locations to search for property for sale in 2021.
Out of the 10 most preferred locations in Bangalore, it was found that four of them (Whitefield, Sarjapur, Sarjapur Road, Margondanahalli) were in east Bengaluru. Three locations (RT Nagar, Yelahanka, and Ramamurthy Nagar) were in north Bengaluru, and two locations (Jayanagar and Vijayanagar) fell within the southern peripheries of the city. Only one of the top searched locations (JP Nagar) was situated in Central Bengaluru.
The popularity for east Bengaluru can be linked to its close proximity and easy connectivity to prominent IT hubs and educational institutions, which is preferred by most working professionals in the city. The preference of locations in north Bengaluru like Yelahanka is linked to superior social infrastructure and easy connectivity to the Kempegowda International Airport.
The property prices for buying a home in the top 10 searched areas in Bengaluru ranged from ₹3,500/Sq. Ft. to ₹ 9,615/ Sq. Ft. in 2021. Whitefield was one of the most sought after property locations in Bengaluru owing to its proximity to major IT hubs in Marathahalli. Jayanagar also remained the most expensive property location in the list because of its easy connectivity to the heart of the city as well as various social amenities in the outskirts.
While most of the inhabitants in these areas are working professionals, the priority of most prospective home buyers in 2021 was proximity to their workplace. This was one of the major reasons for a surge in residential property demands in Sarjapur and JP Nagar, both of which are very well connected to all the major IT hubs of the city.
Pune
Wagholi, Hadapsar, Baner, Lohegaon, Kothrud, Wakad, Pimple Gurav, Kharadi, Pimple Saudagar, and Chinchwad were the top ten most preferred locations for prospective buyers in 2021.
Out of the top 10 searched residential localities in Pune, five localities (Baner, Wakad, Pimple Gurav, Pimple Saudagar, Chinchwad) were in north-western Pune. Three locations (Hadapsar, Lohegaon, Kharadi) were situated in eastern Pune, while two locations (Wagholi and Kothrud) were located in central Pune.
The majority of locality searches in north-western Pune is linked to its proximity to the Mumbai highway, and the residential demand is driven by working professionals employed in the many software companies in the region. The significant preference for localities in East Pune can be linked to the superior social and retail infrastructure, and sound rail and road connectivity to the rest of the city.
The average property prices for buying a house in any of the top 10 most searched locations in Pune in 2021 ranged from ₹ 8,295/ Sq. Ft. to ₹ 13,537/Sq. Ft. Much like Bengaluru, these areas were very popular among prospective buyers because of their well developed infrastructural facilities and their close proximity to some of the major IT hubs of the city. The demand for residential properties Pimple Gurav can be attributed to the comparatively low property prices and higher rental yield opportunity.
Gurugram
Square Yards research has shown that Palam Vihar, Sector 57, Sohna Road, Sector 56, Sector 37D, Rajendra Park, Sector 48, Sector 7, Palam Vihar Extension, and Sector 49 were the most popular locations for prospective buyers in 2021.
When we move deeper into our research, we can see that all these localities were popular among prospective buyers due to their close proximity to various corporate hubs and social amenities like marketplaces and shopping malls.
The average property prices for buying a house in these top 10 localities in Gurugram ranged from ₹ 4,000/ Sq. Ft. to ₹ 9,000/Sq. Ft. While Sector 48 stood out as the most expensive place for purchasing a residential property, one can turn their attention to areas like Palam Vihar for more affordable housing solutions.
Out of the top 10 searched localities in Gurugram, four localities (Sohna Road, Sector 37D, Sector 48, Sector 49) are located in South Gurugram. Two locations (Sector 56 and Sector 57) are situated on Golf Course Road, and a further two locations (Rajendra Park and Palam Vihar Extension) are located in North Gurugram. Palam Vihar and Sector 7 are located in Old Gurugram and Central Gurugram, respectively.
South Gurugram showed the highest concentration of preferred localities because of the quality social and retail infrastructure like schools, hospitals, and shopping complexes. The demand for localities on Golf Course Road can be attributed to its convenient proximity to many prominent software companies and IT hubs, which makes it a hotspot for working professionals. North Gurugram has a nice blend of residential and commercial properties and easy intra-city connectivity.
Noida
According to the Square Yards research, Sector 73, Sector 49, Noida Extension, Sector 137, Sector 78, Sector 75, Sector 121, Sector 79, Sector 63A, and Sector 150 were the top 10 searched residential localities in Noida in 2021.
Out of the top 10 localities searched in Noida in 2021, six localities (Sector 73, Sector 49, Sector 78, Sector 75, Sector 79, Sector 63A) fall in Central Noida. Three localities (Sector 121, Sector 137, Sector 150) are situated along the Noida Expressway, while only Noida Extension falls under the Greater Noida city limits.
Central Noida had the majority share of locality search preferences in Noida owing to its close proximity to the DND and prominent software and healthcare hubs. Preferences for localities situated in Noida Expressway can be attributed to low property prices and easy connectivity to Delhi and other major hotspots of the city. Further, the preference of localities in Greater Noida can be linked to the upcoming airport and planned construction of a new Film City in Noida.
The property prices in the top 10 most sought after locations for buying a house sale in Noida started at ₹ 1,722/Sq. Ft. and ranged up to ₹ 6,251/Sq. Ft. Much like Gurugram, these localities are also extremely popular due to the plethora of amenities they offer.
Apart from this, what makes these areas stand out is the extremely well designed intra and inter city connectivity between Noida and Delhi. The positioning of well planned cities and surrounding green belt areas make for a quiet and peaceful residential environment.
Bottomline
The uncertainty caused due to the Covid-19 pandemic culminated in the demand for a permanent housing solution. When it comes to purchasing a new home, consumer preferences are not restricted by price. As per Square Yards research, more home buyers are now showing a preference for premium localities with superior connectivity and amenities.
Apart from location, the property searching patterns also indicate the people’s need for a significant return on their property investments. Homebuyer’s perspective of property as lucrative investment options have also influenced their purchasing decisions.
