real estate market: more than 80,000 apartments launched on the 6 main real estate markets in the first quarter, according to a report

India’s six major real estate markets saw the launch of more than 80,000 new residential units in the quarter ended March, up 43% from the previous quarter, according to a report from Square Yards.

Mumbai Metropolitan Region (MMR) once again contributed the highest share of 35%, followed by Pune which accounted for 25% of total new launches.

Interestingly, while 2-bedroom apartments remained the most preferred by buyers during the quarter with 42% of total demand share, preference for 1-bedroom apartments also increased.

Recent announcements of property tax exemptions on small setups in MMR and adjacent areas and speculation around expected property price appreciation are the most likely factors behind the superficial trend . Demand for three-bedroom apartments and higher configurations also remained evident.

With a 26% share of total online searches during the quarter, MMR was the most searched city, followed closely by Hyderabad at 22%. Mid-segment properties in the budget bracket of Rs 30-60 lakhs and Rs 60-100 lakhs have been the most sought after by online property seekers.

Indicating strong developer confidence, 3-bedroom layouts constituted over 40% of residential supply in Bengaluru and Gurugram.

Freestanding homes are trending again with a 27% share of total property searches in the six major cities. The southern cities of Hyderabad and Bengaluru led the search with around 42% demand each for freestanding homes in the cities during the quarter. Demand for luxury and ultra-luxury residential space (>3000 sq ft) was greatest in Bengaluru and Gurugram with 12% and 8% share respectively.

Penny D. Jackson