Changing Tides: Shifting Preferences in the Indian Real Estate Landscape
A popular real estate services portal reported in a recent study some quite interesting insights about the Indian real estate landscape. As per the study, Mumbai Metropolitan Region (MMR), Bangalore, and Delhi-NCR are the most searched cities on its portal. While Mumbai Metropolitan Region (MMR) merged as the top-searched city, with 20% of the platform’s users looking for properties, Bangalore and Delhi NCR followed closely behind with 19%.
Another interesting trend that the study revealed was that 80% of the platform’s 2 crore user base is interested in multi-story apartments, followed by builder floors. Preference for these living spaces owes to the high quality of living these communities provide to the homeowner due to the wide array of amenities and holistic living they provide, a preference that has only grown stronger after the pandemic forced everyone into the confines of their homes.
The pandemic also reinforced the need for larger, more spacious homes as the working model shifted to remote/hybrid mode. This is evidenced in the study’s finding that over 56% of homeowners favour 3 BHK and larger units, reflecting the inclination towards larger living spaces. It is important to note that the shift in the consumer demand pattern is due to Millennials and Gen Z entering the housing market for the first time and accounting for a significant portion of the consumer base.
While Tier 1 cities still command a massive demand for housing, the high price and saturation of these markets also created a surge in demand for residential properties in Tier 2 cities in 2023, a trend that is expected to continue in 2024. Yet another cause of this is the robust infrastructural development that is taking place in Tier 2 cities as a result of the government’s initiative as well as the massive commercial penetration in these micromarkets, drawing a talent pool of workers to the area.
However, it isn’t just the demand for home ownership that surged in Bangalore but also for renting residential properties. While the demand for renting remained stable in the rest of the cities, in Bangalore, it increased from 21% in 2022 to 24% in 2023. Approximately 67% of the demand for renting residential properties comes from young adults aged 18 to 35.
In summary, the trends unveiled in the study spotlight the ever-changing dynamics of India’s real estate scene. From the growing appeal of Tier 2 cities to the surge in demand for rentals, these insights underscore a dynamic market adapting to the preferences of a new generation. As we look ahead, the real estate landscape promises to be shaped by flexibility and foresight, ensuring it aligns seamlessly with the evolving demands of homeowners and renters in the years to come.
