The online property search volume in September 2021 surpassed the historical peak that was witnessed in September 2020.
Online searches for residential properties touched an all-time high in September 2021, with Delhi-NCR topping the chart. This was on the back of positive consumer outlook amid easing concerns on the Covid-19 front, historically low home loan interest rates and flexible payment plans being offered by realtors to attract homebuyers, according to Housing.com ‘IRIS Index.’
IRIS (India residential index for online search) is a monthly index that tracks potential homebuyers’ activity in primary and secondary residential markets on the Housing.com portal. It has been created to give an in-depth view of buyer activity in India by tracking 42 key cities driving the residential market.
Providing insights into the IRIS index findings, Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com, said, “Online activity of high-intent buyers looking to buy a house post the second wave of the COVID pandemic is in line with overall market sentiments and the pick-up in economic activity.”
“All key high-frequency indicators of the health of the economy, such as manufacturing & services PMI, GST collections, credit growth and fuel & power consumption, are pointing towards a robust recovery post the second wave of the Covid-19 pandemic in the country. The index, which saw a new peak in September 2021, signals a positive turnaround for the residential realty market over the coming months,” Agarwala added.
The online property search volume in September 2021 surpassed the historical peak that was witnessed in September 2020. The growth momentum in high-intent homebuyer activity has continued to stay above-100 mark sequentially since the last three months, recording a smart recovery post the second wave. The index is a weighted average of 42 cities limited to buying interest alone and is calculated on the basis of high-intent homebuyer activity observed on the Housing.com platform.
“The IRIS index closed at an all-time high in September 2021. The India online property search volume moved up five points to reach 116 points post the second wave of the pandemic – a faster resurgence as compared to the same period in 2020,” Housing.com said.
IRIS index revealed the maximum search volume was for 2 BHK and 3 BHK configurations. A majority of homebuyers were searching for 2,3 BHK apartments in the sub-Rs 50 lakh price bracket, closely followed by those who were ready to spend Rs 50 lakh – Rs 1 crore.
Also, the share of buyers looking for 3 BHK and 3 BHK plus properties is increasing constantly as the work-from-home culture is here to stay in the post-Covid world.
DELHI-NCR TOPS IRIS index
Delhi NCR continues to take the top spot on the index. The capital region has been topping the high-intent buyer activity since June 2021. It is worth mentioning that Delhi NCR has been plagued with various woes of litigations, unsold inventory and trust deficit in the past, which derailed the residential realty momentum in the region.
“The sustained online property search activity in Delhi NCR is a leading indicator on the improving consumer sentiment in one of the largest residential markets in the country. The coming months will present a clear picture regards the conversion of online interest and search queries into actual residential sales,” said Ankita Sood, Director & Head of Research, Housing.com, Makaan.com & PropTiger.com.
In Gurugram, micro-markets of Sector 57 along Golf Course Extension Road and Sector 67 along Sohna Road witnessed heightened online searches with most of the potential homebuyers in these micro-markets looking at apartments with good infrastructure and connectivity in the price bracket of Rs 1-2 crore.
In Noida, IRIS index revealed, most of the searches were concentrated in sectors along the Noida-Greater Noida Expressway such as Sector 150 and Sector 137. The searches were mainly around 2 BHK and 3 BHK configurations in the price range of Rs 50 lakh to Rs 1 crore. Noida Expressway due to its connectivity and the now functional metro has been garnering a lot of interest for office leasing which in turn is cascading into residential demand along the expressway. Greater Noida is emerging as a choice for buying residential plots as the upcoming international airport at Jewar and the proposed metro rail extensions have made the region an attractive destination for homebuyers.
Surat recorded the highest jump of six points to reach fourth rank amongst the top-20 cities. The maximum search queries in this Gujarat city was recorded for apartments in the micro locales of Vesu and Dindoli. A majority of homebuyers in Surat are searching for apartments with 2 BHK configurations in the sub Rs 50 lakh range.
Patna and Coimbatore registered an improvement of four positions each on IRIS. In the capital of Bihar, most of the search queries were concentrated in localities such as Danapur and Phulwari Sharif.
A large chunk of homebuyers in Patna was looking for residential plots, while apartments with 2 BHK configurations are most searched in Coimbatore. In the case of Coimbatore, Saravanampatty and Vadavalli recorded a majority of queries for buying a home.
Most of the searches in both cities are concentrated in the less than Rs 50 lakh price category.
The formalisation of work-from-home in many business organisations has provided the workforce flexibility to shift their base to their hometowns and smaller cities.
Kolkata registered the highest decline in online search volume.
In the case of most homebuyers, the buying process starts with searching for the desired residential properties online, which then translates into purchases in the ensuing months.