Indians will have a greater preference for larger flats and luxury living in the coming years, according to a Housing.com report. Mumbai, Pune and Hyderabad will lead the expected steady growth of India's residential real estate sector in 2024.
The report has been compiled leveraging extensive data analysis of online homebuyer activity. Mumbai, Pune and Hyderabad have emerged as major hubs of mass market activity and are poised to shape the sector's growth in the coming months, the report said.
Growing demand for larger flats: The trend for larger flats, especially 3+ BHK flats, is gaining momentum. Search inquiries for these space layouts saw a six-fold annual increase in 2023, reflecting the growing trend towards larger living spaces.
More preference for luxury living: Demand for high-end apartments is expected to increase for 2024. Demand is expected to increase in 2024, especially for luxury flats priced at INR 1-2 crore and above. 2023 has seen a remarkable 7.5 times increase in annual online property search volume for this segment.
The most searched places to live in Mumbai include Malad (West), Kandivali (West), Borivali (West), Mira Road (East) etc., while the most sought after places to live in Pune are Wakad, Wagholi, Baner.
Rental Market and Emerging Trends in Tier II Cities: Online search trends indicate that the rental market is expected to witness significant growth in 2024, particularly in Gurugram, Mumbai, Bengaluru and Pune, attributed to back-to-office policies. In 2023, rents in key areas of these cities increased by 25 to 50 percent compared to pre-pandemic prices.
Also, second-tier cities such as Jaipur, Indore, Lucknow, Mohali and Vadodara have emerged as significant markets for residential activities. This represents their highest year-on-year growth in online property search volume for purchase.
Significance of Gated Communities and Consumer Sentiment: Gated communities along with ready-to-move-in properties are expected to play an important role in home buying in 2024. According to the Consumer Sentiment Outlook, most homebuyers prefer buying a home directly from a developer. This reflects confidence in new property developments as compared to resale properties.
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