Property Watch: Salaried-class turn pied piper for residential realty in FY22; 2 BHK houses account for lion share in sales

India’s real estate residential segment has seen a revival. Thanks to the salaried class who have been at the forefront of buying the property, virtually acting as a pied piper to take the sector out from stagnations. The trends suggest that mid and high segment residential properties account for the 80 per cent sale.

In this, two bedroom houses contributed to 38 per cent sales while 26 per cent has been contributed by three bedroom segments.

Property consultant Anarock conducted a survey to determine the trends in the residential housing segment for the financial year 2021-22 (April-March).

To know more details about the current trends Zee Business' Deepak Yadav spoke to Prashant Thakur, who is Senior Director and Research Head.

The recovery in the real estate sector has been led by end users and not investors or speculators, Thakur said while spelling out the finding of the survey.

In this context, service calss and professionals have been the one to lead the sales. The contribution of salaried class is around 68 per cent while that of business class and professional class is 18 per cent and 8 per cent respectively.

In the investor category, most purchases are with a long term view, he further said.

A lion share of the purchases is happening in the price range of Rs 40-Rs 80 lakhs at 42 per cent. The next segment is between Rs 80 lakh and Rs 1.5 cr, where 37 per cent sale has happened. The trends have been across cities are expected to sustain, Thakur said.

In a range between Rs 2-5 cr, the share has been 5 per cent.

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The entire trend has been observed in the post-Covid period.

In Chennai and Pune, the highest demand has been in the mid-end segment. In case of former, 60 per cent sales have happened in the mid-end segment while in Pune it is 59 per cent, the Senior Director said.

Meanwhile, In Bengaluru, 56 per cent demand has come in the high-end segment where people did not mind buying properties worth Rs 1.5 cr or more, he said. In Hyderabad, purchases with ticket size of Rs 2.5 cr has seen significant traction, Thakur said.

In the National Capital Region (NCR), the demand for larger units has been found in the survey with focus on 4 BHK properties and plots.

Even in Mumbai, the preference from 1-1.5 BHKs has shifted to 2 BHK houses even if they are at the periphery.    

On the issue of higher interest rates in the aftermath of increased repo rate by the Reserve Bank of India (RBI), Thakur said that there is still affordability factor in play even as the rates are expected to go up, going forward.

There is also a pressure on developers to increase the property rates due to the escalation in input cost, he lamented.

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The good thing is that, most developers now are A-listers and they would not undertake a random hike. They will weigh how mush of the cost could be absorbed and what could be passed-on to the buyers.