Housing.com’s IRIS index reached 109 points in September 2023, registering an uptick from 102 points in previous month. This upturn comes after a four-month decline owing to the global headwinds and the geo-political uncertainties. However, despite the gloomy macro-economic scenario our consumer sentiment survey suggests that potential homebuyers are positive about economic and income scenario with augurs well with property demand. These positive sentiments, combined with the ongoing festive season, have spurred buyers to continue their property searches.
If we dwell deeper into the search activity, it suggests that homebuyers are looking for property with 2 BHK followed by 3 BHK with majority of such searches and queries being concentrated in INR 50 lakh—1 crore price bracket in key cities of India. The volume searches for ready-to-move-in (RTMI) properties continue to grow which grew by 30 per cent YoY in September 2023 as compared to 25 per cent growth in queries for under construction property during the same period. Our consumer survey mirrors a similar trend where 59 per cent of the potential homebuyers indicated that they are looking for RTMI properties for the coming quarter. The growing importance of home ownership amidst the pandemic and lingering trust deficit have pushed the interest of end users for such RTMI properties over under construction which will take next 3—4 years to complete.
Mumbai climbs back to third spot after two months
The financial capital of India, Mumbai, regained its third position on the IRIS index in September 2023 after losing it to Lucknow and Surat for preceding two months. Localities such as Thane West, Mira Road East and Andheri West were most searched for buying a home in the region. Majority of the queries are for 1 BHK and 2 BHK in INR 50 lakh – 1 crore and upwards of INR 1 crore price range.
Where Mumbai gained on its rank, its western counterpart Pune’s rank slipped by one position. While search activity in this IT hub of India has eased in September, our market insights suggest that it has witnessed strong double-digit growth in both new supply and demand in first six months of 2023. Majority of the searches in the city are concentrated in Wakad, Ravet and Baner. Similar to Mumbai, Pune homebuyers are looking for apartments with 1 BHK and 2 BHK configuration in INR 50 lakh – 1 crore price bracket.
Lucknow and Surat trends amongst the top-5 cities with maximum online property search volume
Amongst the Tier 2 cities, Lucknow, the capital city of Uttar Pradesh, maintained its second spot surpassing all the other Tier 2 cities in the top 20 list on the IRIS index. According to Housing.com, the majority of homebuyers in Lucknow are looking for apartments in INR 50 lakh – 1 crore. Maximum searches are for properties with a 3BHK configuration, followed by 2BHK. In the case of apartments, the majority of queries are concentrated in locales such as Gomti Nagar, Indira Nagar and Vrindavan Yojna.
Another emerging city which is making its mark on the index in Surat. While it has witnessed a drop of one point in its rank, the city has been trending amongst top-5 cities with maximum online property search volume since June 2023. Homebuyers in Surat are looking for properties in locales such as Vesu, Dindoli, and Mota Varachha. The majority of the queries are for apartments with a 2BHK configuration in INR 50 lakh – 1 crore price bracket.
Overall, the online property search volume has picked up in September 2023 owing to upbeat homebuyer sentiments and festive season. While our insights suggests that rising property prices and interest rates coupled with gaps in available inventory and homebuyer preferences have to an extent impacted the demand, the strong sentiment for homeownership has motivated buyers to continue their property searches, especially amidst the festive season where developers offer discounts. The IRIS index gaining momentum is an indication that buyers have resumed their searches, which is indicative of a positive turnaround for the coming quarters.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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