Major Trends in Indian Real Estate in 2017

Real Estate sector has always been the most important sector of our country as employment and GDP(Gross Domestic Product) is highly affected by the rise and fall of this sector. Although real estate has always glistened among all the other sectors, yet it was anticipated that due to certain reforms brought by the Modi led BJP Government in 2016 and 2017 to bring in more transparency like demonetisation, GST(Goods and Services Tax) and implementation of RERA(Real Estate Regulatory Authority Act), real estate sector would be adversely affected and may go on a downfall. But by discarding all the preliminary notions that real estate has lost its charm, realty again emerged as a winner and continued to be appealing as compared to other sectors. It can be said as according to the report “How India searched for homes in 2017” which was prepared by online real estate Magicbricks, analyzed consumer behavior over the last 12 months to capture interesting consumer trends in 2017, more than 15 lakh Indians looked for properties last year. So, it clearly reflects that real estate remains a desirable asset in India. Property site’s Head Marketing Prasun Kumar said, “In a year marked with several policy changes, the fact there was more than 15 lakh active searches for a property in 2017 debunks the myth that buyers have exited the market and establishes the real estate continues to be a desirable asset for Indians.” Owing to the importance of the real estate sector, a careful analysis was done and some trends were highlighted in the report. These are certain trends that were seen in Indian Real Estate Sector in the previous year.

Preference of floor

Whenever one thinks of buying or investing in the apartment, the first thing that comes to mind is that on which floor one should invest. Everyone has its own choice when it comes to living in a comfortable apartment. Floor too plays an important role in this process. So, as far as choice of the floor is concerned, the second floor was the most preferred choice in 2017 among home-buyers. Bengaluru, Kolkata, Ahmedabad, and Thane were the main cities where the demand of the second floor for apartment buyers reached a high level whereas, in Delhi and Chennai, the first floor was the most popular choice. Taking third floor and all other floors above it into consideration, so, Mumbai, Navi Mumbai, and Thane was the key players.       

Demand for space skyrocketed

If home buyers aspire to a comfortable and luxurious lifestyle then a spacious room with proper ventilation is something which is demanded by all. The demand is also reasonable as spacious rooms add charm to the house and give it a breath-taking magnificent look. The trend of spacious and well-ventilated units was followed by property buyers in Gurgaon. In all property, buyers wanted a lot of space to adjust their apartments according to their own taste. 1250-1750 sq. ft. the area was demanded in developed cities like Gurgaon, Bengaluru, and Hyderabad. Most common preference in the area was 1000 sq. ft. which was aspired by buyers in New Delhi, Ahmedabad, Pune, Chennai, Ghaziabad, Kolkata and Greater Noida. But property buyers in Mumbai, Navi Mumbai and Thane were satisfied with area ranging from 500sq. ft. to 750 sq. ft. Still, buyers and investors looked for lots of space to enhance comfort as well as beauty.

Variation in Buy-Rent Preferences

Although the demand for rented and wholly bought units showed a balanced trend in Mumbai as 50% of the investors demanded rented units whereas,50%of them wanted to buy the unit. In fact, Maharashtra occupied the top spot with seven of its localities being most preferred localities around the country. But in other metropolitan cities like Bengaluru, New Delhi and Pune demand for rented properties which was more in comparison to buying. As according to the report, 61%, 62% and 59% of the buyers and investors wanted rented properties in Bengaluru, New Delhi, and Pune respectively. But in Navi Mumbai and Hyderabad, demand for rented properties was less as only 42% and 43% of the investors wanted to invest in rented properties. Rest of them wanted to wholly buy the property. Hence, by and rent preferences showed great variation in different cities. Somewhere, it was balanced but other places showed preferences for buy or rent properties.

Preference for independent houses reached new heights in South India

Everyone has its own preference when it comes to stylish, modern and comfortable lifestyle. As after a tiring day at work, one finds a sense of complacency and peace at one’s home. The year 2017 showed a varying trend in real estate sector when it comes to choosing among Residential houses, Multi-storey apartments, Builder floors, and Penthouses. According to the report, Bengaluru is the city which is open to all types. It was observed that people in Bengaluru, Hyderabad, and Chennai mostly looked for artistically designed and beautiful residential houses, plots, and villas. But other places showed a different pattern. The aspiration for multi-story apartment rose to great heights in Mumbai, Pune, Bengaluru and Navi Mumbai. Delhi, Chennai, and Ghaziabad showed the expected trend of great inclination towards Builder floors. In other cities like Ahmedabad, Mumbai, and Bengaluru, penthouses maintained the top spot by being the most preferred choice among home buyers. It can be concluded from the data that South Indians preferred to stay in independent houses.

The quality structures with their favourite location and ample space for decor and setting as per one’s liking and tastes give a sense of paradise in the abode. Just like 2017, it is expected that the trend of rising of Real Estate Sector would continue to bring cheer and happiness for builders and investors in 2018 as well. The development of real estate sector is of utmost importance as it is not only responsible for good quality structures and residential complexes but also for the growth of other sectors increasing employment opportunities for the overall development of Indian economy.