Housing sales have tripled in Bengaluru, doubled in Chennai and there has been growth in demand and supply in Hyderabad as homebuyers are returning to the market, according to a report by 99acres.com. Maneesh Upadhyaya, Chief Business Officer at 99acres said that the July-Sept quarter witnessed a sharp resurgence in housing sales in most Indian metro cities, spurred by spillover demand because of the pandemic and a limited stamp duty cut in some states.
In Bengaluru, 99acres said that sales were propelled by stamp duty rates and pent up demand, but also home loan rates which have currently been slashed. Housing sales according to the report grew from 1,742 to 5,100 units, as compared to the same period last year.
The report adds that the demand, based on consumer demand and active listings, for 1 BHK properties in the city is in Marathahalli and Rajaji Nagar, and for 2 BHK it is in Electronic City, Ramamurthy Nagar and Hebbal. For 3BHKs, it's in Whitefield, Yelahanka and KR Puram.
The city registered an average hike of 1% in average property prices in Jul-Sep 2021 vs Apr-Jun, it said.
There has been an increased preference for buying 3 BHK homes or villas in the price range of Rs 90 lakh to Rs 1.5 crore as organisations are preparing for a hybrid work model, it said.
â€śMicro-markets such as Whitefield, Electronic City, Hebbal, Devanahalli, Yelahanka, Hennur, Jakkur and Thanisandra, remained at the cynosure for prospective buyers. A few enquiries were also registered from the southern regions around Kanakapura Road and Bannerghatta Road,â€ť 99 acres said.
Demand for land is also steady within the Rs 1 crore segment in areas such as Devanahalli, Chandapura, Sarjapur Road, Attibelle and Hoskote, it said.
People are also interested in investing in farmland around the city, especially in areas such as Chikkamagaluru, Hosur, Sakleshpur, Chikkaballapur, Coorg and Chintamani Road. The unsold inventory stands at around 67,000 units, it said.
Rents, on the other hand, it said have remained sluggish and have degrown by 4%, and only a few localities saw prices go up.
In Chennai, the report by 99acres said that over 3,000 units were sold during the quarter, mostly in the middle income segment (houses priced between Rs 40 lakh and Rs 1 crore), and attributed the sales numbers to factors such as low home loan rates and unchanged property prices.
â€śGated communities and independent villas garnered buyers' interest. Interested buyers were inclined to relocate to suburban/peripheral markets in order to get larger homes without hurting their pockets,â€ť it said.
Localities such as Porur, Siruseri, Tiruvallur, Pallikaranai and East Tambaram saw maximum new supply, it added, and that most new houses were priced below Rs 60 lakh.
â€śAn addition of over 1,00,000 new affordable houses in the city in the coming quarters is expected to turn the table, especially for the sub-Rs 45 lakh segment, which reported the highest demand. Furthermore, several proposed infrastructure projects such as Chennai Metro Phase 2, Chennai Peripheral Road, and redevelopment of George Town, have the potential to spur realty growth,â€ť it said.
The most consumer demand in the housing segment below Rs 45 lakh was in Guduvancheri and Avadi, in the segment between Rs 40 lakh and Rs 1 crore was in Madipakkam, Kolathur and Medavakkam, in the luxury segment or houses over Rs 1 crore, was in areas such as Velachery, Perambur and Thoraipakkam.
People are looking for 1BHKs in areas such as Guduvancheri and Poonamallee; 2BHKs in Madipakkam, Kolathur and Ambattur; and 3BHKs in areas such as Porur, Sholinganallur and Pallakaranai.
It added that the Greater Chennai Corporation's decision to approve all building plans of non-high rise residential and commercial buildings with a maximum floor space index area of 464.50 sq m and up to a height of 12 m within 30 days has improved market sentiment, and is expected to fast track construction schedule and project deliveries.
The rental market, it said, remained subdued, and areas such as Velachery, Medavakkam and Sholinganallur reported an average rental decline of 8-9% on a year-on-year basis due to WFH still in place.
Hyderabad, according to the report, has shown growth in both demand and supply during the July-September quarter, with demand predominantly driven by end-users, high net worth individuals and NRIs, and a miniscule share of investors.
â€śIn general, 2 and 3 BHK units, measuring 1,100-1,300 sq ft for 2 BHK and 1,500- 2,500 sq ft for 3 BHK, remained popular. New residential projects received decent response from the buyers in Q3 2021,â€ť it said.
Buying luxury homes, including villas, is becoming a trend in the city, the report said.
â€śLed by consistent demand, the city has recorded an increase in the value per square feet rate of this property type, especially the newly constructed ones. Areas such as Nanakramguda, Kokapet, Narsingi, and Kondapur in the western quadrant ruled the roost in terms of buyer enquiries, new launches, and residential sales,â€ť it read.
Key markets for 1BHK homes included Kukatpally and Beeramguda; Miyapur, Nizampet and Manikonda for 2BHKs; and Gachibowli, Kondapur and Narsingi for 3BHKs.
The demand for larger homes is driven by work from home in Hyderabad as well.
It added that property prices are now inching up after remaining stable as there is optimism. â€śDue to the increase in land prices, the demand for budget homes has increased in the fringes of the city, particularly for houses in the price range of Rs 60 lakh-80 lakh,â€ť it said.
The rental housing market isnâ€™t doing badly in the city, as the IT belt continued to be popular.
â€śIn general, 2 and 3 BHK rented accommodations are in demand, particularly in areas such as Manikonda, Kukatpally, Gachibowli. Property prices in this segment remained low-key in Jul-Sep 2021 to keep home seekers interested,â€ť the report said.