As we enter the third year of the pandemic, most have accepted the new normal. After being caught off guard in 2020, the Indian economy in 2021 demonstrated a high level of preparedness and resilience across sectors. Real estate India, which has been in a cyclical trench since 2013, experienced its worst period, with business coming to a halt across supply and demand chains. Following a massive blow from the pandemic, the real estate sector appears to have emerged from the woods recently, with growth momentum expected to continue in 2022. Among the various segments, residential real estate saw a significant increase in 2021. Furthermore, Mumbai real estate, Bengaluru real estate, and Hyderabad real estate get expected to lead the residential real estate recovery in 2022. These three cities saw increased homebuyer activity following the second wave of the coronavirus pandemic.
According to the IRIS index of Housing.com, after the second question of the pandemic, Tier-II cities such as Surat, Jaipur, and Patna are the ones that recorded the highest summation successful online spot hunt measurement successful 2021. The scale also includes a list of cities to ticker retired for increasing residential demand. These include Tier-II cities such as Surat, Jaipur, Patna, Mohali, Lucknow, and Coimbatore.
And what contributes to this residential real estate economic recovery, you ask? Home purchases have accelerated because of record low home loan interest rates over the last 15 years, as well as record low affordability driven by stable real estate prices. Mumbai, Hyderabad, and Bengaluru will lead the residential housing recovery in 2022.
The IRIS index, maintained by Housing.com, tracks the volume of online property searches conducted by high-intent homebuyers. The index is a leading indicator of residential demand in the key 42 cities of India. In addition, the index predicts that larger homes will be the preferred option among homebuyers in 2022, as companies continue to offer remote working policies in the face of Omicron variant threats. According to data, search queries for apartments with 3+BHK configurations increased by 15% year on year in 2021.
In 2022, the metro cities of Mumbai, Bengaluru, and Hyderabad will drive a revival in residential demand. On the back of continued remote working policies, there is also increased traction in tier-II cities such as Surat, Jaipur, Patna, Mohali, Lucknow, and Coimbatore. Homebuyers are towards larger homes and areas with better healthcare, security, and open space. The market will get shaped by changing consumer preferences in residential real estate in 2022. Not to forget the digital penetration across the supply and demand value chains.
Because the price of any property is directly related to its size and amenities, online searches for properties costing more than Rs 2 crore have increased. 1.1x queries got registered on the index for premium properties in 2021.
The index also indicates that Noida Extension in Noida will see significant homebuyer interest.
According to the index, Noida Extension had the highest share of national online property search volume this year. It is primarily due to the comparative affordability of the area. It is also because the center and the UP government have recently announced several mega infrastructure projects for this region. Housing.com The IRIS index also predicted that the rental market in the megacities of Mumbai, Bengaluru, and Delhi would improve in 2022 as companies increased hiring. In 2021, the three cities accounted for the massive share of the online search volume for renting a home.
Because online search trends are leading indicators of potential demand offtake, we anticipate that 2022 will get characterized by a well-informed end user who will consider affordability and habitability before making a purchase.
We see a few key trends shaping the residential real estate landscape in 2022
- Mumbai, Bengaluru, and Hyderabad will set the pace for residential recovery in 2022. The cities saw increased homebuyer activity following the second wave of the pandemic.
- Surat, Jaipur, and Patna will be the most popular Tier-II cities for home purchases in 2021. They are experiencing the highest growth in online property search volume.
- A massive configuration and adjoining study format will be a preferred segment among homebuyers in 2022 – search queries for apartments with 3+BHK configuration increased by 15% year on year.
- Premium properties will see an increase in demand in the coming year, with 1.1x more queries for apartments with ticket prices greater than INR 2 crore in 2021.
- Residential plots will be more popular than ever before, with a 42 percent year-on-year increase in search queries for residential.
- Greater Noida West (Noida Extension) in Greater Noida will see a surge in homebuyer interest in the coming year. It also accounts for the massive share of national online property search volume.
- Greater Noida West (Noida Extension) in Greater Noida, Mira Road East (Mumbai), Andheri West (Mumbai), Borivali West (Mumbai), and Whitefield are the top five localities that will lead national residential demand in 2022. (Bengaluru).
- The rental market in Mumbai, Bengaluru, and Delhi gets expected to revive in 2022 because of the return to work and hybrid work policies. These three cities have the highest share of online search volume for renting a home.
- Surat, Jaipur, Mohali, Lucknow, and Coimbatore are among the Tier II cities to watch for rising residential demand.
- Proximity to healthcare infrastructure and security will be critical to completing a home purchase in 2022. The Consumer Sentiment Outlook for 2022 also reports that potential homebuyers rank health infrastructure and security as the most desired amenity this year.
- Digital India– 42% of prospective home buyers want to complete the transaction entirely online or after only one site visit.
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