People Opting for Larger Homes In Top Cities: Housing Sales Rebound 50%

Reality firms see a jump in serious property enquiries

Despite the realty sector has taken a body blow due to lockdown, one part of its market is showing strong signs of bouncing back. Reality firms see a jump in serious property enquiries, which are now 50 percent of before lockdown in the top cities like Bengaluru, Gurgaon, Hyderabad, Kolkata & Noida.

The demand in Bengaluru is the highest that has reached 70 percent of the first two months, followed by Gurugam with around 65 percent.

Enquires are mostly from the government employees and the workers from IT/ITeS, pharma, manufacturing industries. Most of the property seekers are working couples with kids, which are pursuing the work from home and e-learning options. The maximum of such property seekers opting to settle in the peripheral areas to secure the biggest homes and a better lifestyle at cost-effective prices. See here Surfaces reporter coverage on this: Work From Home Concept is Changing People’s Home Buying Decisions

There is a sharp increase in the conversion ratios on websites from nearly 5 per cent before lockdown to 10 per cent now. And the number of serious buyers has already outstripped window shoppers.

People are predominantly scouting for 3/4BHKs in the big cities while MMR buyers see a higher preference for 2 BHK over the earlier 1 BHK, with property size between 400-800 sq. ft. carpet area.
Prashant Thakur, The Director & Head – Research of ANAROCK Property Consultants

The Director & Head – Research of ANAROCK Property Consultants, Prashant Thakur says, “Despite site visits far from the previous levels, the site-visit-to-closure conversion rate has increased considerably as only serious buyers are venturing out, with casual window shoppers fairly dormant currently. Hyderabad now sees an average of 15% site visits converting to sales, against 8% in the pre-COVID-19 period. Gurgaon, with just 4-5% conversions earlier, is now clocking in at 8-10%. Other cities report similar trends.”

The maximum enquiries for properties priced from INR 40 Lakh to INR 1.25 Cr, for flat sizes 1,400-1,600 sq. ft. built-up area.  

Most buyers are preferring ready-to-move homes. However, MMR still witnesses good traction in under-construction homes with 6-12 months’ delivery timelines. There is still a high demand for newly-launched projects in Pune. Most buyers are looking for gated communities with all amenities.

The gulf based Non-resident Indians (NRIs) are also looking for properties in India as they prepare to return to the native country after this coronavirus pandemic.

Notable City-specific Trends

MMR

  • Site visits were back to nearly 50% of pre-COVID-19 levels towards July-end, from predominantly serious buyers.
  • Besides RTMI properties, under-construction homes with completion timelines between 6 months to 1 year are in high demand, provided developers sweeten the deals.
  • Properties priced b/w INR 60 lakh to INR 1.2 Crore of sizes 400 to 800 sq. ft. carpet area in highest demand. Buyers aged b/w 30-35 years currently living on rent have the highest purchase inclination.
  • Some buyers are upgrading from 1 BHK to 2 BHKs.
  • July alone witnessed ~40% number of sales seen in the April-June period

Bengaluru

  • In the last 3 months, enquiries for larger homes have increased up to 40% with property seekers predominantly scouting for 3BHKs (avg. 1,800 sq. ft. built-up area) as against the previously-preferred 2 BHKs. The current buyers are largely working couples with children, most currently pursuing the WFH and e-learning options. Most of these buyers will settle for peripheral locations to secure bigger homes and a better lifestyle at more affordable prices.
  • Most buyers prefer gated communities with all amenities.
  • East and South Bengaluru seeing rising queries for properties sized 1,800-2,500 sq. ft. built-up area, led by IT professionals and business owners looking for larger spaces. 

Gurgaon

  • Property enquiries are presently at 65% of pre-COVID-19 levels.
  • Site visits are back to pre-COVID-19 levels with a sharp increase in conversion ratios - from nearly 5% earlier to 10% now.
  • Maximum enquiries for properties priced b/w INR 75 lakh - INR 1.25 Crores of sizes 1,400 - 1,600 sq. ft. built-up area, largely from end-users. Affordable properties are seeing some traction - 30% demand for affordable housing is from investors, 70% from end-users.
  • High demand for 2 and 3 BHKs in full-fledged housing societies.
  • Overall sales volumes have reached 60% of pre-COVID levels.

Noida and Ghaziabad

  • Predominantly, serious end-user enquiries have increased to 40% of pre-COVID-19 levels, site visits are increasing steadily.
  • Maximum enquiries for properties priced b/w INR 40 lakh - INR 80 Lakh in Ghaziabad and INR 50 Lakh - INR 1.2 Crore in Noida, of sizes 1,500 - 2,500 sq. ft. built-up area. Most buyers are IT/ITeS employees, Govt. officials and retired Govt. personnel.
  • Most buyers are looking for 3 or 4 BHKs, as opposed to the previously-preferred 2 BHKs. People with constrained budgets are seeking 2 BHK + study (2.5) of 1,200 sq. ft. built-up area.
  • July alone saw more than half the number of sales recorded between April and June.
  • Property sizes now a deal maker; most buyers now prefer gated communities with all amenities, demand for independent homes has reduced.

Hyderabad

  • Site visits have reached 40% of pre-COVID-19 levels, with higher conversions – from 8% on an average earlier to nearly 15% now.
  • Hyderabad continues to see higher demand for 3BHKs, usually priced b/w INR 80 lakh to INR 1 Crore with avg. sizes 1,500-1,600 sq. ft. built-up area.
  • Increasing demand for villas priced >INR 2 Crore on which buyers are negotiating hard.
  • Since Hyderabad has almost negligible RTM unsold stock, there is good demand for under construction projects.
  • Besides IT/ITeS professionals, increased demand from doctors, lawyers and pharma professionals.
  • Gated communities with all amenities still the highest draw.

Pune

  • Property enquiries have reached up to nearly 50% of pre-COVID-19 levels.
  • Site visits increasing steadily, with higher conversions – from 9-10% on an average earlier to nearly 12% now.
  • INR 40 lakh to INR 80 Lakh is the sweet spot budget range for properties sized b/w 560 sq. ft. to 900 sq. ft. carpet area. 2BHKs continue to be the Holy Grail.
  • Interestingly, ultra-luxury homes priced b/w INR 2.5 Cr to INR 4.5 Cr sized b/w 1,200 – 2,000 sq. ft. carpet area are also seeing some traction.
  • Since Pune has limited RTM unsold stock, there is good demand for under construction projects by branded developers.
  • Sales volumes are more than 40% of pre-COVID-19 levels.
 
Text Courtesy: ANAROCK Property Consultants

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