More than 40% property searches for 3BHK and larger homes in 2021: Square Yards Report

The residential real estate segment displayed an indomitable spirit to remain resilient in Q4, 2021 as well as the whole year. Even though the home buying sentiments were dented in the second quarter due to the second wave of Covid, the sector
bounced back by the end of the year.

A healthy growth of 16% in the number of new residential units launched in Q4, 2021 as compared to the Jan-Mar 2021 quarter, in spite of the second wave and the looming threat of the Omicron wave, indicated that the sector is well equipped to handle any future contingencies caused by the pandemic. Home-buying sentiments also improved consistently as the year drew to a close. Home buying trends have been evolving ever since the pandemic took over the world.

For the past two years sentiments of prospective home buyers have pendulated between the urge to own a home and
trying to hold their savings under the uncertain economic conditions. With improving economic conditions, buyers are gradually gaining back the confidence to invest.

This was clearly reflected in the demand trends wherein a clear shift from affordable housing to middle and upper middle segment was noted over the years. There has been a consistent growth in demand for a little extra space in the form of an added room, or flex rooms or larger balconies, thanks to the changed working and living circumstances in the Covid era. For instance, more than 40% of the total property searches in 2021 were for 3BHK and larger configurations homes. Further, 35% of the online property seekers looked for a home sized between 1,000-2,000 Sq. Ft. in 2021, a considerable shift from the pattern noted in 2020 wherein the share was less than 20%.

This shift also meant the gaining popularity of larger ticket sizes in the post-pandemic era. While mid-segment housing still drives the major demand, properties priced above Rs 1 Crore formed 33% of total online searches in Q4, 2021 a rise of 6% from Q1, 2021.

The search for larger homes also meant property types other than apartments gaining back popularity. For instance, a consistent Q-o-Q growth was noted in the share of demand for
independent homes in 2021. There was a 14% rise recorded in the demand for these in Q4, 2021 over Q1, 2021. The trend was particularly prevalent in the southern cities of Bengaluru and Hyderabad.

TICKET SIZE SPLIT OF SALES

Amidst the constant buzz which surrounded home buying in 2021, pandemic-induced constraints also had a considerable impact on the residential markets. At large, homebuyers looked for spacious homes but in the mid housing segment. People seemed willing to increase their budgets but not in a profligate manner. Given that, large number of buyers looked for offerings, where they could have a spacious home that wouldn’t put their financial security at stake at the cost of ensuring a roof over their head.

Reflecting the same, Q4, 2021 also had maximum registrations in the mid-housing segment. About 40% of the sale transactions at Square Yards were for homes in the ticket size of Rs 30-60 Lakhs and 29% of the transactions were for residential units at Rs 60-100 Lakhs. In addition to it, the last quarter of 2021 also recorded an overall jump of 12% in the transactions share of mid-segment housing as compared to the previous quarter. The sale of residential units between Rs 1-3 Crore also picked up well in the last quarter by contributing 23% towards the total share, compared to 14% in Q3, 2021.