Despite an obvious lull in the real estate markets amidst the pandemic, 2021 witnessed a rise in online searches for extra-large homes in India. Square Yards investigates the reason behind this and whether this emerging trend is here to stay for the long haul.
Space has always been an intrinsic factor governing the purchase decision of homebuyers. However, with the pandemic causing havoc around the world, the need for spacious homes tends to have intensified even further in the last two years.
While the work-from-home culture might have influenced the need for private workspaces at home, finding a permanent solution and the urgent necessity to accommodate most family members under one roof amidst the ruthless pandemic could have been other reasons for such searches in 2021.
But, would this popular preference for larger properties linger in 2022 and beyond?
Square Yards research has dived deep to understand this consumer behaviour regarding larger home searches (4000 Sq. Ft and more) and has emerged with quite interesting insights. Read on to know the details.
Note: The data used here displays the city-wise search trends on squareyards.com for homes sized more than 4000 Sq.Ft. in Bengaluru, MMR, Gurugram, Noida, Hyderabad and Pune.
2021 Search Trends for Larger Homes: The Revelation
Going by the online searches of 2021, the most searches for luxury homes took place in the second half of the year. This means from the month of July to December 2021, more people searched for homes sized 4000 Sq. Ft or above.
Quarterly Search Trends for Larger Houses in 2021
Contrary to the metropolitan cities of MMR, Gurugram and Noida, a higher preference for larger houses was evident in Bangalore (for three quarters in 2021) and Hyderabad in the second quarter.
The southern cities have always preferred properties, like independent houses and villas over vertical apartments. With nationwide urbanisation, the apartment culture had seeped into the southern states of India probably a decade and a half ago. This escalated even further with the boom of the IT sectors in cities like Bangalore and Hyderabad.
So, even though people do live in and purchase apartments in these cities now, there has always been an innate preference. This tendency for larger homes was on display in the year 2021 indicating a comeback of traditional home buying preferences.
Additionally, the pandemic-induced evolution of the existing work culture and the rise of work from home may have also heightened the searches for larger homes as now, apart from separate rooms, space for home offices and dedicated work areas have also become integral.
On the flip side, if we look at Noida, Gurugram, MMR and Pune, we will find that the percentage share of larger house searches across all the quarters of 2021 had not even gone beyond 20 percent. While MMR is one of the most populated metropolitan cities amongst the six with minimal scope for larger house development, let alone affordability, the homebuying preferences in Gurugram and Noida mostly inclines towards larger apartments rather than larger houses.
Most Searched Budget Range for Larger Houses
As per Square Yards research, online searches for properties more than Rs 5 crore had the maximum percentage share of 27 percent in 2021 followed by Rs 1-3 crore with 22 percent. Various factors could have influenced such a search pattern for larger houses.
Firstly, it is a common notion amongst the majority of prospective buyers that larger homes will cost more. And, logically, it is true. But, the one thing that may have fueled the hope of affording larger houses amongst the working populace in 2021 could have been lowered home loan rates.
Since 2019, home loan rates have gone down from nine percent to seven percent. At the current moment, some banks are even offering home loans at a meagre 6.50 percent, making real estate purchases easier than ever.
So, what could be inferred from this data is that searches for larger properties in 2021 might not have been completely limited by separate income groups, even though Rs 1-3 crore was an economic range for properties over 4,000 Sq.Ft.
Another reiterating influence could also have been a heightened preference for more well-facilitated properties in prime locations. Most of the working population is concentrated in and around well-connected urban areas, especially near employment and commercial hubs. So, property search in such prime locations online was a predictable move in 2021 provided that there had been a recent trend of inclining more towards the permanent solution.
City-Wise Analysis of Locality Preferences for Larger Homes in 2021
Here’s the city-wise analysis of the most searched localities in each city for homes sized above 4000 Sq.Ft. in the last year.
Noida
As per Square Yards research, the top 10 most searched localities in Noida for larger homes in 2021 were Sectors 150, 128, 78, 46, 72, 50, 108, 79, Jaypee Greens and Sigma I.
Out of these localities, five of them (Sector 128, Sector 46, Sector 150, Jaypee Greens and Sector 108) are along the Noida-Greater Noida Expressway. Apart from the excellent road connectivity, what could have been the motivating factor of deciding to move into a bigger house in these locations could be the dominant factor of these primarily being residential areas with close proximity to adjacent business parks and employment zones.
Other localities such as Sector 50, Sector 79 and Sector 78 are amongst well-known residential hubs in the city. This alone is reason enough for anybody to buy a bigger house here.
MMR
According to Square Yards research, Juhu, Bandra West, New Panvel, Panvel, Uran, Kharghar, Worli, Mira Road, Santacruz and Lokhandwala emerged as the top 10 most searched localities in MMR for lavish properties sized 4000 Sq.Ft. and above.
Digging deeper, we found that Uran, Kharghar, Panvel and New Panvel are in the Navi Mumbai region. Affordability and the scope of finding larger houses due to relatively higher availability of land in these locations could be the reason for the searches. Being developing localities, Santa Cruz and Mira Road also house multiple large properties that are more easily affordable than the city’s upscale areas.
On the flip side, localities like Juhu, Bandra West, Lokhandwala, and Worli are considered the poshest areas in MMR. Even the biggest celebrities from the entertainment industry own luxury homes in these localities making them an aspiring choice among common homebuyers.
Pune
The top 10 localities in Pune wherein larger homes were searched the most in 2021 include Lonavala, Wagholi, Koregaon Park, Aundh, Kharadi, NIBM, Kothrud, Baner, Hadapsar, and Magarpatta Road.
Koregaon Park, Magarpatta City, Kharadi and Hadapsar, located on the eastern side of Pune are known for their premium residential complexes and developed amenities. They’re well connected to the main city and are the preferred destinations amongst people working in the IT/ITeSsector. Thus, it makes sense for people to look for luxury homes in these locations.
On the southern side of Pune are NIBM and Wagholi which also offer good connectivity. One can find a wide range of housing options including residential plots, independent houses and luxury apartments in these localities.
Given the excellent infrastructure and public utilities provided by Aundh and Baner, it’s no shocker that people are searching for larger houses at these locations. Developed and upscale, they are the perfect choice for those searching for larger homes in premium locations in the city.
However, out of all the localities, Lonavala stands out the most as it boasts of being a hill station in the west of Pune and a hot tourist destination. Since the price of luxury homes/villas in cities like Mumbai and Pune are soaring, Lonavala came across as an affordable yet enticing option near Pune in 2021. The need for a holiday home has also seen a surge since the pandemic and demand for locations such as these only reinforce the same. Apart from multiple ongoing premium projects, Lonavala also has larger properties at prices that homebuyers could easily afford, thus making it a perfect fit for a second/holiday home.
Hyderabad
As per squareyards.com, in 2021, the top searched localities for larger properties included Jubilee Hills, Moinabad, Banjara Hills, Kukatpally, Sainikpuri, Manikonda, Madhapur, Gachibowli, Shamirpet and Sadashivpet.
Jubilee Hills, Manikonda and Banjara Hills are considered to be some of the most expensive localities of Hyderabad. Home to reputed industrialists, corporate executives and movie stars, it is no wonder that these areas were preferred destinations for luxury homes amongst people in 2021. While the existing reputed residents of the area may have invoked aspirations amongst people to look for properties in these locations, they might also have been preferences for consumers that come under the higher income bracket.
Like Bengaluru, Hyderabad is also known for its IT industry with locations like Gachibowli, Kukatpally and Madhapur comprising some of the biggest tech parks and companies. The splendid social and retail infrastructure could have been plausible reasons why people searched for larger homes in these areas, considering the advantage of proximity for most of the working populace.
Other localities like Shamipret, Sainikpuri, Moinabad and Sadashivpet are fast-growing residential cum commercial hubs of Hyderabad. They offer incredible growth opportunities, thus buying a bigger house in these areas might have been considered a smart investment choice in 2021.
Bengaluru
Square Yards research depicted that five of the top 10 localities in Bengaluru (RR Nagar, HSR Layout, Singasandra, Jayanagar and Nagarbhavi) are located in the western zones of the city. The other two localities (Indira Nagar and Hennur Road) are situated in the eastern periphery of Bengaluru.
The common factor amongst all these localities is that they are all well-established residential areas offering easy connectivity and best-in-class amenities.
Nelamangala and Devanahalli house some of the most affordable properties in the city. These two locations also offer excellent road connectivity to Bangalore and are touted as two of the fastest developing localities in the city which could be potential reasons for people to have looked for bigger houses here in 2021.
Whitefield, on the other hand, is not only a developed residential location but a major IT hub boasting excellent connectivity and infrastructure. Strategic location, rich amenities and workplace proximity made it one of the top searched localities of 2021 in Bengaluru for larger homes.
Gurugram
The most searched localities in Gurugram for luxury homes in 2021 were Sector 57, Palam Vihar, DLF Phase II, Sector 62, Sector 4, Sector 49, Sector 66, Manesar, Sector 50 and DLF Phase I.
Out of the 10 preferred localities, four of them (Sector 50, Manesar, Sector 57, and Sector 49) are well-established residential areas. These developed localities score high in terms of connectivity and allow homeowners to enjoy social and retail amenities in abundance.
DLF Phase 1 and Phase 2 also proved to be two of the finest areas to buy a home in. They offer seamless connectivity to employment hubs and have a great mix of residential houses and builder floors. These qualities could have attracted potential buyers to look up larger homes in these locations in 2021.
Additionally, Sectors 62 and 66 are two of the most rapidly growing residential regions in Gurugram. Offering easy access to social and retail amenities and honing robust connectivity with major employment hubs like Golf Course Road, Golf Course Extension Road and Sohna Road, these two sectors proved to be quintessential residential locales with affordable and large housing options. .
Palam Vihar and Sector 4 are in the old Gurugram region. Already dominated by independent houses and villas, it’s no surprise that they were the top preference of people looking to buy luxury homes in 2021.
Bottomline
With this research, it seems that homebuyers today are searching for bigger homes to benefit from larger balcony space, extra bedrooms or possibly some extra space that they can use to set up a study or workout zone. Their main focus appears to be on multi-utility rooms that they can use to work from home or potentially school their children from home.
Also, after being locked inside their homes during the pandemic, they’ve realised the importance of open spaces. Bigger homes are the best way to get that and more easily.
Thus, the demand for luxury or larger homes together with a desire for a better lifestyle is likely to sustain in 2022 as well. However, the question that still prevails is the availability of land for residential development in these cities in the near future.
