Enquiries for residential property rise; now at 50% of pre-Covid-19 levels

Anil Urs Bengaluru | Updated on August 07, 2020

Bengaluru sees biggest rise in enquiries at 70%, followed by Gurugram at 65%. Conversion of site visits to sales also improves

India’s residential real estate segment is witnessing a decisive return of serious enquiries, which are now at 50 per cent of pre-Covid-19 levels in major cities.

“Recovery is fastest in Bengaluru, where current enquiries have reached 70 per cent of the January-February period, followed by Gurugram at nearly 65 per cent,” said Prashant Thakur, Director & Head – Research, Anarock Property Consultants.

He further said that though “site visits are 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 now. Hyderabad now sees an average of 15 per cent site visits converting to sales, against 8 per cent in the pre-Covid-19 period. Gurgaon, with just 4-5 per cent conversions earlier, is now clocking in at 8-10 per cent. Other cities report similar trends.”

Notable city-specific trends

Bengaluru: In the last three months, enquiries for larger homes have increased up to 40 per cent with property seekers predominantly scouting for 3 BHKs (average 1,800 square feet built-up area) as against the previously-preferred 2 BHKs. The current buyers are largely working couples with children, who are now chosen the 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 areas are seeing rising enquiries for properties of 1,800-2,500 sq.ft built-up area, led by IT professionals and business owners looking for larger spaces.

Gurgaon: Property enquiries are now at 65 per cent of pre-Covid levels. Site visits are back to pre-Covid levels with a sharp increase in conversion ratios — from nearly 5 per cent earlier to 10 per cent now. Maximum enquiries are for properties priced between ₹75 lakh and ₹₹1.25 crore of sizes 1,400-1,600 sq.ft built-up area, largely from end-users. Affordable properties are also seeing some traction — 30 per cent demand for affordable housing is from investors, and 70 per cent from end-users. There’s high demand for 2 BHKs and 3 BHKs in full-fledged housing societies.

Overall sales volumes have reached 60 per cent of pre-Covid levels.

Noida and Ghaziabad: End-user enquiries have increased to 40 per cent of pre-Covid-19 levels, and site visits are increasing steadily. Maximum enquiries are for properties priced between ₹40-80 lakh in Ghaziabad and ₹50 lakh to ₹1.2 crore in Noida, of sizes 1,500-2,500 sq.ft built-up area.

Most buyers are IT/ITeS employees, government officials and retired government personnel. Most buyers are looking for 3BHKs 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.

MMR: Site visits were back to nearly 50 per cent of pre-Covid-19 levels towards July-end, from predominantly serious buyers. Besides RTMI properties, under-construction homes with completion timelines between six months to one year are in high demand, provided developers sweeten the deals. Properties priced between ₹60 lakh and ₹1.2 crore and of sizes 400-800 sq.ft carpet area are in hight demand. Buyers aged 30-35 years currently living on rent have the highest purchase inclination. Some buyers are upgrading from 1 BHK to 2 BHK.

July alone witnessed around 40 per cent of the sales seen in the April-June period

Pune: Property enquiries have reached up to nearly 50 per cent of pre-Covid levels. Site visits are increasing steadily, with higher conversions — from 9-10 per cent on an average earlier to nearly 12 per cent now.₹40-80 lakh is the sweetspot range for properties sized 560-900 sq.ft carpet area. Interestingly, ultra-luxury homes priced between ₹2.5 crore and ₹4.5 crore with 1,200-2,000 sq.ft carpet area are also seeing some traction. Since Pune has limited RTM (ready-to-move-in) unsold stock, there is good demand for under construction projects by branded developers. Sales volumes are more than 40 per cent of pre-Covidlevels.

Hyderabad Site visits have reached 40 per cent of pre-Covid levels, with higher conversions — from 8 per cent on an average earlier to nearly 15 per cent now. Hyderabad continues to see higher demand for 3BHKs, usually priced between ₹80 lakh and ₹1 crore with average size of 1,500-1,600 sq.ft built-up area. There’s increasing demand for villas priced over ₹2 crore too, 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, there’s increased demand from doctors, lawyers and pharma professionals. Gated communities with all amenities still have the highest draw.

Published on August 07, 2020

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