As per data with Square Yards research, more than 60 per cent of the online property searches during Q2, 2021 in the top six cities were for home sized under 1000 Sq. Ft. Square Yards takes a deep dive into the property search trends with respect to home sizes to figure out if there is an ideal home size for the Indian home buyer!
The ‘ideal home size’ is a relative phenomenon. What’s best for one family might not be the same for another. While it is impossible to draw a comparison at individual family levels, Square Yards took a look at the most searched home sizes in the top six cities (Mumbai, Pune, Gurugram, Noida, Bengaluru, and Hyderabad) to understand if there is an ideal home size for the average Indian property buyer.
Even though, as per Square Yards research, 61% of the total online searches during the second quarter of 2021 were for residential units sized less than 1000 Sq. Ft., the segment does not seem to be the preferred one across all cities. The perception of an ideal home size has always been subjected to different interpretations given all the extraneous and intrinsic parameters. Thus, these searches varied when we did a city-wise analysis.
The ‘ideal home size’ in different cities
For instance, data trends for Q2, 2021 revealed that amongst the cities tracked, Mumbai and Pune drove the demand for smaller homes (<1000 Sq. Ft.). A whopping 84% of the searches in Mumbai were for units sized under 1000 Sq. Ft., while a significant 63% of people searched for the same size in Pune. This search behavior outrightly reinforced all-time space and price constraints and affordability issues spanning the real estate sector in these cities.
However, searches in cities such as Hyderabad, Bengaluru, Gurugram, and Noida depicted a completely different storyline. Demand in these cities was largely concentrated in the 1000-2000 Sq. Ft. segment with more than 40% searches in this category during Q2, 2021.
In fact, the combined searches in the 1000-2000 Sq. Ft. and 2000-3000 Sq. Ft. categories stood at 60% or more indicating a shifting preference for larger homes in these cities. Even in Pune, though maximum searches were for the <1000 Sq. Ft. home size, a significant number of searches (31%) were captured for this segment as well.
This search behavior can be attributed to the combined need for affordability as well as relatively more spacious units than what people looked for in the pre-COVID era. Also, slashed stamp duty charges by different states and historically low interest on home loans has certainly attracted more homebuyers in the segment.
Another interesting trend that came to the fore was that, while opting for more spacious units, the prospective buyers were also simultaneously searching for semi-furnished units. In cities such as Bengaluru, Gurugram, and Pune, more than 60% of the searches were for semi-furnished units, given the leverage such units entail to the prospective home buyers. Usually, a semi-furnished unit comes equipped with amenities such as wardrobes, modular kitchens, wooden flooring, and even fitted air-conditioners and geysers at times. This gives the buyer freedom from the need to not set the house up from scratch while at the same time not depriving them the liberty to customize the home according to one’s own desires and budget.
Again, the dominant trend in Mumbai and Pune was different probably reflecting the price sensitivity of home buyers here. Around 60% of the home buyers in the two cities searched for an unfurnished home, given the high prices adhered to such additional furnishing services.
Are people searching for large homes?
Even though there is a growing need for relatively more spacious homes in the post-COVID era, how big are Indian home buyers willing to go with their homes? Apparently, not much. As per the data, only around 3% of the searches were centered around home-sized above 3000 Sq. Ft.
However, what was interesting to note was that most of these searches came from a select few cities. On analyzing trends at a micro level, by segregating online searches based on different brackets of the home size it was observed that 43% of the searches under the >4000 Sq. Ft. category came from Gurugram and Bengaluru. Apart from it, the size-wise break-up for searches in each city showed that Gurugram and Hyderabad recorded a 10% demand for homes sized above 3000 Sq. Ft.
Emerging narrative
The varying trends observed in online searches for different home sizes seem to paint two emerging narratives. One, prospective average home buyers seem to be looking out for more spacious units. As the majority of the online home searches across tracked cities were concentrated in the 1000-2000 Sq. Ft bracket, it is more likely that given the constraints posed by the pandemic, families seem to be aspiring for a more spacious 2BHK or small 3BHK unit.
However, with cities like Pune, recording the maximum online searches for smaller units, despite affordability not being a major driver, the second narrative seems to be indicative of residential real estate emerging as a more reliable investment avenue for home buyers, more prominently than ever before.
In spite of the analysis drawn above, the ideal home size for an average home buyer remains speculative, given the varying individual preferences, constraints, and choices offered by developers across various cities.
Do let us know, what’s your take on an average home size in the comment section below.
