byREVIEW MY PROP
JUNE 02, 2020
NEW DELHI: A silver lining in the residential sector can be seen with 10 out of 12 key residential markets of the country surveyed showing positive dynamics in the last quarter of the year, reveals the Magicbricks’s PropIndex Report Q4 2019. South Indian cities of Bengaluru, Hyderabad and Chennai have emerged as the best performing market for the year, according to the report.
While some areas of the country faced downward pressure in prices and a reduction in supply, searches remained robust in the affordable segment. The search trend suggests that India is looking for houses under Rs 4,000 per sqft to Rs 5,000 per sqft, it said.
According to the Magicbricks report, the Credit Linked Subsidy Scheme (CLSS) under PMAY has led to increased buyer interest in the affordable and lower-mid segment. Emerging localities in the price bracket of Rs 4,000 per sqft to Rs 5,000 per sqft observed the highest consumer interest.
In most cities, supply managed to keep pace with the demand, thus maintaining stagnant prices. The premium segment witnessed price declines in most tier-I cities, as above Rs 10,000 per sqft buyers looked for negotiated deals. The segments of Rs 20-30 lakhs, Rs 30-40 lakhs, and Rs 40-50 lakhs each accounted for 10% of the searches at the India level.
Magicbricks CEO Sudhir Pai said: “The findings of PropIndex Q4 2019 indicate that consumer searches have remained robust in the affordable segment. While some areas of the country faced downward pressure on prices and reduction in supply, the search trend suggests that India is looking for houses under Rs 5,000 per sqft, making up a significant 40% of the searches on Magicbricks. The highlight, however, is the south India market that continued to resist recessionary pressures, with prices appreciating in all three cities of Hyderabad, Chennai and Bangalore.”
Besides the South Indian cities of Hyderabad, Chennai and Bangalore, other cities which are also doing commercially well are Pune and Navi Mumbai. Affordable satellite cities such as Noida and Thane are also gathering pace due to infrastructure and connectivity with the main employment hubs, the report added.
Cities with rapidly improving infrastructure (like Navi Mumbai and Hyderabad) witnessed steady price increase due to real estate development and buyer interest along major growth corridors. While prices fell marginally in Pune due to oversupply in peripheral areas, it remained stagnant in Mumbai. On the other hand, North India is yet to recover from the oversupply situation and project delays.
The PropIndex report also reveals that while Bengaluru showed steady growth in residential market with an increase of 25% in the last 5 years, demand started to pick up in Chennai in the last one year, with prices moving in tandem, rising a moderate 5% year-on-year.
Demand started to pick up in Delhi, but the city has limited options. While the prices remained low in the last 5 years, an increase of 1.8% in the past one year indicates a positive development for the residential segment of the city. The residential demand in Gurugram has been dull, however the city’s improving infrastructure could boost demand.
The report further said that Noida and Greater Noida markets are struggling to pick-up despite demand matching supply, affordability, and lower interest rates.
In Kolkata, despite the decrease in active listings and consumer searches, the city price index rose with 2.1% during the quarter, indicating a revival of the residential market.
Demand in Ahmedabad has started moving towards the peripheral areas. Benefiting from a lower base, the city’s prices grew by a decent 6.9% year-on-year.
The industry could recover from the liquidity crisis, as more trusted developers are dominating new supply and big-ticket projects like metros and roads are encouraging the sales volumes in the peripheral areas, the Magicbricks report showed.
With monthly traffic exceeding 20 million and an active base of over 1.1 million property listings, Magicbricks is India's No.1 property site. It provides the largest platform for buyers and sellers of property to connect with each other in a clear, transparent manner.
Source : Times Of India.