Online property search volume at a 4-month high in June 2022

Housing.com’s IRIS index reached 113 points in June 2022, registering an uptick from 93 points in the previous month. The index reached a four-month high post slackening on the back of global headwinds owing to geopolitical uncertainties. The online property search activity has strengthened as sustained macroeconomic growth has bolstered the homebuyer sentiments. For instance, the services Purchasing Manager’s Index (PMI) reached an 11-year high in June 2022. The retail inflation eased to 7.01 per cent from 7.04 per cent in the preceding month.

Mirroring the leading indicators, the primary residential markets have also sustained growth momentum as demand and new supply have recorded a sequential uptick of 5 per cent and 28 per cent in Q2 2022. Also, despite the second hike in repo rate, which is currently pegged at 4.90 per cent, as compared to an all-time low of 4.0 per cent between April 2022-April 2022, the credit growth for housing has risen to 15.14 per cent YoY, the highest since the start of pandemic in April 2020. The overall optimistic scenario and improving homebuyer sentiments are reflected in the IRIS index, which has picked up pace in June 2022, a positive indicator for the impending property demand in the upcoming months.

Kolkata, followed by Ahmedabad, records the highest jump in rank on the IRIS index

In June 2022, Kolkata registered the highest jump of 9 points in its rank, reaching the 12^th position on the IRIS index. The growth momentum is reflected in primary residential demand, which recorded a 13 per cent sequential growth in April-June 2022 quarter. The property demand in Q2 2022 in Kolkata is at par with the quarterly average of the pre-pandemic levels of 2019. The majority of the property searches in the city are concentrated in the localities of New Town, Rajarhat, and Kasba. Homebuyers in Kolkata are looking for apartments with 2BHK and 3BHK configurations in less than INR 50 lakh price bracket.

Following the lead of Kolkata is Ahmedabad, whose rank jumped by 6 points as the city reached 4^th position on the list of the top 20 cities with maximum online property search volume. The city has registered the highest sequential growth of 30 per cent in primary residential demand amongst the top eight cities of India. The online property searches and queries suggest that the majority of homebuyers in Ahmedabad are looking for apartments with a 3BHK configuration in less than INR 50 lakh price bracket. Most of the online property search volume is concentrated in localities such as Chandkheda, Gota, and Nava Naroda.

Patna climbs to the 3^rd rank on the list of top 20 cities with maximum online property search volume

Patna, the capital city of Bihar, has climbed to the 3^rd rank surpassing all the other Tier 2 cities in the top 20 list on the IRIS index. The development of physical and social infrastructure has picked up in the city under the Smart City mission with a focus on IT connectivity, e-governance, smart mobility, clean water, and sanitation. Patna offers robust intra-and-intercity via metro, roadways, and railways. It also houses the international airport. The ongoing development has attracted several national and global companies to the city, which has trickled down into residential activity.

According to Housing.com, the majority of the home buyers in Patna are looking for apartments and plots in the less than INR 50 lakh price bracket. 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 Danapur, Gorgawan, and Khagaul, whereas for plots, buyers prefer Bihta and Danapur.

Where Patna has gained momentum on the index, Surat has witnessed the highest drop of 9 points in its rank. The city, which had been consistently maintaining its position in the top-10 cities with maximum online property search volume since May last year, dropped to the 18^th position in June 2022. Homebuyers in Surat are looking for properties in locales such as Vesu, Dindoli, and Adajan. The majority of the queries are for apartments with a 2BHK configuration in less than INR 50 lakh price bracket.

Overall, the online property search volume has picked up in June 2022 as the market sentiments are improving on the back of improving macroeconomic activity. While the global uncertainties still cast a shadow on the outlook, their grip has certainly weakened, boosting consumer confidence and activity in the market. 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.

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Renuka Kulkarni - Research Desk

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.