Housing.com’s IRIS index has eased to 99 points in February 2022, compared to 108 points in the same period last year. The momentum has slowed down after the index reached a legendary peak of 131 points in January 2022. While the impact of the third wave has remained subdued, the ongoing geopolitical tensions have dampened the sentiments on both the demand and supply sides as inflationary pressures continue to rise amidst the uncertainty. However, the IRIS index remains well above the dip of 81 points recorded during the second wave.
The leading indicators have also remained more or less steady despite the third wave and geopolitical unrest. For instance, the manufacturing and services PMI each remained in the expansion zone at 54.9 and 51.8, respectively, in February 2022. The unemployment rate has elevated marginally to 8.10 per cent, although it remains lower than the peak of 11.84 per cent recorded in May 2021. The non-food credit growth registered a growth of 8.3 per cent in January 2022 as compared to 5.9 per cent a year ago. Consumers, including home buyers, are cautiously optimistic about the future economic and income scenario despite the ongoing political situation and the COVID-19 pandemic.
As homebuyers continue their searches, although at a slower pace than the preceding month, they are looking for apartments in the less than INR 50 lakh and INR 50 lakh-1 crore price range. The majority of queries are for apartments with 2 BHK and 3 BHK configurations. The searches and queries for 3 BHK and 3+ BHK continue to see growth amidst the hybrid working scenario.
Delhi NCR climbs back to the first spot on the IRIS index
Delhi NCR took the first spot on the IRIS index after losing it to Mumbai for four months. The region, which is an agglomeration of cities such as Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad, has always been one of the most prominent residential markets in India. The majority of the homebuyers in Delhi NCR are searching for property in Noida, Gurugram and Greater Noida.
In Noida, the majority of the queries were for buying a home in Sector 150, Sector 137 and Sector 78. Home buyers in Noida are looking for apartments with 3 BHK and 2 BHK configurations within the price range of INR 50 lakh-1 crore. While in Greater Noida, buyers are looking for not only apartments but also residential plots. Most of the searches in Greater Noida are concentrated in the micro-markets of Noida Extension, YEIDA and Surajpur.
In Gurugram, maximum queries for buying a home were concentrated in Sector 57 and Sector 67, along Golf Course Extension Road, and Sector 49 along Sohna Road. The bulk of the home buyers in the city are looking for properties with 2 BHK and 3 BHK configurations in the INR 50 lakh-1 crore and INR 1-2 crore price range.
Hyderabad continues to hold the third spot on the IRIS index for the second time. The city gained its third rank after 11 months in January 2022. The home buyers in Hyderabad are looking for apartments in western locales such as Miyapur, Kondapur and Kukatpally. Most of the queries are for homes with 2 BHK and 3 BHK configurations in the INR 50 lakh-1 crore price category, followed by the INR 1-2 crore price range.
Bhopal and Ludhiana witness the highest jump in rank amongst the top-20 cities with maximum online property search volume
The Tier-2 cities of Bhopal in Madhya Pradesh and Ludhiana in Punjab have recorded the highest jump in ranks amongst the top-20 cities in India, witnessing maximum online property search volume. Bhopal, which made it into the list in the preceding month, has jumped seven positions to grab the 9th rank. The ongoing economic and infrastructure development under policies like Smart Cities Missions and the creation of SEZ zones are creating a conducive business ecosystem in the city, thus garnering the interest of national and multinational organisations along with the workforce. The presence of investment corridors such as Bhopal-Indore and Bhopal-Bina, along with the international airport, has augmented the regional and international connectivity of the city.
As Bhopal continues to grow as a major economic node of central India, there is also the rising interest and development in the residential real estate segment. The majority of the queries for buying a home in the city are concentrated in locales such as Kolar Road, Bagmugalia and Ayodhya Bypass. There is a low-density residential development in Bhopal, which is also visible in the majority of the searches, which are for independent homes with a 3 BHK configuration and residential plots. Properties within the less than INR 50 lakh price range are most searched for in Bhopal.
After Bhopal, Ludhiana, one of the major cities in Punjab, jumped four positions, reaching the fifth spot on the IRIS index. A slew of projects has been undertaken in the city to improve connectivity, services and liveability under policies such as Smart City Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT). The state government of Punjab has allocated INR 11,494 crore to convert the Ludhiana district into a smart and ultra-modern city by way of infrastructure development. Also, the development of the international airport in Halwara near Ludhiana is underway, which will put the city on the global map. The ongoing infrastructure development with emphasis on regional and international connectivity has bolstered the residential activity in Ludhiana.
In Ludhiana, the maximum queries are for buying homes in the regions of Sahnewal, Mundian Kalan and Haibowal Kalan. Most of the home buyers in the city are searching for independent homes with 3 BHK and 2 BHK configurations in the less than INR 50 lakh price bracket. Apart from independent homes, people are also searching for plots in the Ludhiana along the Ludhiana Bypass Road and Ludhiana Chandigarh state highway.
Overall, the online property search volume has eased under the pressures of the third wave and current geopolitical tensions. However, despite the slowdown, the IRIS index remains well above the dip witnessed during the peak of the second wave of the pandemic. The subdued impact on the online property search activity suggests that homebuyer sentiments remain cautious yet optimistic.
