Home buyers seek larger living spaces: PropIndex.

The latest edition of the PropIndex (Jul-Sep 2014) indicated a growing preference for residential houses while properties in the respective mid-segment range of each city saw the maximum demand!

Looking for spacious accomodations? Try Magicbricks and check out options!

With the government at the centre in place, the real estate markets were expected to show some signs of revival across cities in the country this quarter (Jul-Sep 2014). However, most of the cities still continue to witness a drop in capital values in the range of 1-5 per cent. Rental markets were comparatively more positive and witnessed growing values in some cities. This was also a result of the significant drop in rental values that was noticed in the Apr-Jun 2014 quarter. Values stabilised in certain cities in the current quarter which reflected as rising values.

Need property related advice? Click!

The highlight of the report was the gradual shift of buyers towards residential houses, in this quarter. Across all cities, a rising demand was noted for residential houses as compared to the previous quarter. The trend was most evident in the southern cities such as Hyderabad, Chennai and Coimbatore and Delhi in the North. These cities witnessed a rise of 8-11 per cent in the demand of these properties.

This indicated that buyers were looking for more spacious living, but it did not reflect a rise in demand for luxury properties. On the contrary, demand for high end properties priced above Rs 1 crore witnessed a drop in demand across several cities. The drop varied from 1-8 per cent in Delhi, Gurgaon, Noida, Ghaziabad, Mumbai, Pune and Ahmedabad. Southern cities such as Chennai and Hyderabad bucked this trend with demand in the category remaining unchanged in the last six months.

Buyers were looking for properties in the mid segment range in their respective cities. For instance, in Delhi, maximum demand of 34 per cent was noted in the Rs 40-100 lakh range while in Gurgaon the maximum demand of nearly 25 per cent was noted for the Rs 60-100 lakh range. In Mumbai, where the mid segment ranges between Rs 50-100 lakh, nearly 35 per cent demand was noted.

As far as BHK configurations are concerned, 2BHK units continued to be the most popular among buyers in all cities, except in Gurgaon.

Thus, while buyers are still looking for properties that fit the mid-segment range, growing prices and the shrinking size of apartments has led buyers to opt for residential houses.

Source: http://content.magicbricks.com/industry-news/home-buyers-seek-larger-living-spaces-propindex/77075.html