The real-estate scenario is on its way back to pre-Covid-19 levels with a decent showing in the current year 2021. The metropolitan regions of Hyderabad, Bengaluru and Mumbai Metropolitan Region (MMR) are touted to continue leading India’s real-estate market restitution for the upcoming year – 2022. These 3 cities are expected to have the largest impact on the real-estate scene of India as purchase of residential units have increased combined with all-time low home loan interest rates and affordability due to real-estate prices remaining pretty stable throughout the last 12 months.
Tier-2 cities like Jaipur, Patna and Surat have had the highest share of online property search volume in 2021 but buyers’ activity remained the highest in the 2 cities of Hyderabad, Bengaluru & Mumbai pre- and post-second wave of the pandemic. Tier-2 cities have topped the list of building-up residential demand among which Jaipur, Surat, Patna, Lucknow, Mohali & Coimbatore top the list. These are the indications drawn from housing.com’s IRIS index which tracks the online search volume of homebuyers looking for properties with high-intent. Housing.com measures the IRIS index in all major cities of India and the list indicates the residential unit demand gain/drop in 42 Indian cities.
Dhruv Agarwal, the CEO of Housing.com said “The year 2021 has definitely been a year of positive change for residential realty. We firmly believe that the strong momentum in the residential markets will continue through the 2022 calendar year, provided India is able to effectively deal with the threat of the Omicron variant spread.” The index also suggests that buyers are preferring to buy larger homes as companies employ hybrid work options and remote working solutions with the uncertainty of how the severe the spread of the Omicron variant is. Houses with 3BHK or larger configurations are being preferred and there was a 15% rise in demand for larger apartments compared to previous years.
Ankita Sood, Head of Research at Housing.com says “Homebuyers are now leaning towards larger homes and localities with access to better healthcare services, security, and open spaces. The changing consumer preference in residential realty, along with digital penetration across the supply and demand value chain, will shape the market in 2022.” As buyers are looking for larger houses, there has been a 10% increase in properties valued at more than ₹2 crores. The region of Delhi NCR has suffered in its real-estate performance due to builder insolvencies & project delays, there is expected to be a significant increase of homebuyer interest for properties in Noida for the coming year.
Housing.com IRIS index also indicated that the rental market in the mega cities of Mumbai, Bengaluru and Delhi might come back on track in 2022, as companies increase hiring. In 2021, these three cities took the maximum share in online search volume for renting a home.