PropIndex clearly indicates that this is a market driven by end-users and consumer preferences have now come into sharp focus. This 10th Edition Issue also features a complimentary copy of the IIM Bangalore- Magicbricks Housing Sentiment Index Report.
November 27, 2013: Over the last two years the Magicbricks PropIndex has consistently reported on the major real-estate markets of Delhi, Gurgaon, Noida, Ghaziabad, Mumbai, Pune, Ahmedabad, Kolkata, Chennai, Hyderabad and Bangalore.
With substantial growth in volumes of magicbricks’ users from smaller cities- this 10th edition of PropIndex introduces Vadodara as the 1st in a series of new & emerging markets with strong drivers, which shall be introduced over time.
The key take-aways from Vadodara were that the real estate market was largely stable and is witnessing a situation of over-supply, particularly in the price bracket of Rs.25-50 lakh. More details are available in the full report available on newsstands and online.
The 10th PropIndex includes a complimentary copy of the 1st edition of the “IIMB-MB Housing Sentiment Index” (HSI), which gauges the mood & sentiment of buyers – whether they are end-users or investors, and provides an early indicator of how markets would perform in the future. It clearly indicates that while the consumer is willing to wait in anticipation of better prices, he is also quite willing to search for the best deals over the next six months.
The reported data clearly indicates that this is a market driven by end-users and consumer preferences have come into sharp focus. The number of enquiries indicates that there is a strong latent potential demand. However buyers seem to be shying away from committing due to a slow market.
While, investors, developers and landlords seem more willing to negotiate in an effort to keep up sales velocities; End-user customers are using this six to eight month window to explore the markets at length, search for a property of their choice and then enter negotiations to get a good deal.
Apartments have emerged as the winner with all cities showing robust demand. Smaller units of 1, 2 and 3BHK are preferred over larger premium apartments. However, demand for premium apartments is driven by a small group of buyers who show that sentiments have nothing to do with this volume of demand. This being a lucrative segment, developers seem to prefer to build more in this category, thereby creating abundant supply.
Speaking at the launch of the latest PropIndex, Sudhir Pai, Business Head, Magicbricks said, “The industry would benefit by using statistics to understand consumer sentiment, and be able to navigate basis the direction that markets are likely to take. The volume of stock in every market, if positioned correctly, can be used to bring back the end user. Unlike 2010, when developers had little to woo the anxious consumer with, this time round, they have plenty of stock and a negotiating power to turn the markets around. The question is, can they take leadership and make Real Estate the sector to kick start a sagging economy?”
Key highlights from the PropIndex:
- Despite all uncertainties and weak sentiments in the market, property worth between Rs. 30-50 lakh continues to top buyer preference nationally.
- Cities that buck the trend are Kolkata, Gurgaon and Mumbai. In Gurgaon and Mumbai, properties worth Rs. 1-2 crore witnessed higher demand, except in Thane and Navi Mumbai. In Kolkata property worth up to Rs. 20 lakh tops demand.
- Bangalore’s Index was the biggest gainer with a rise of 17%. It was followed by Kolkata with 9%, Mumbai, Delhi, Pune and Vadodara witnessed a 4% rise each, Ghaziabad, Ahmedabad and Hyderabad with 3% and Gurgaon with 2%. Only, Noida registered a drop of 1%.
- About 40% demand was for multistory apartments across cities.
- About 30% supply was of 800-1200 sq.ft. apartments.
More details are available in the 10th edition of PropIndex and complimentary 1st edition of the “IIMB-MB Housing Sentiment Index” (HSI) – Now on newsstands and online. You may also email PropIndex@timesgroup.com for the complete report.