NEW DELHI: Tier II Cities Nagpur, Coimbatore, Bhubaneshwar, Indore and Jaipur emerging as drivers of real estate growth, according to a recent report by magic bricks.
The report highlights that Nagpur (49%), Coimbatore (27%), Bhubaneswar (12%) observed the highest year-on-year (YoY) growth for Residential searches and Nagpur (84%), Coimbatore (30%) and Indore (6%) showed the strongest year-on-year growth for rental searches.
Sudhir Pai, CEO of the company, said, “Covid-19 was a watershed moment for real estate, especially for Tier II cities which have become engines of real estate growth. Additionally, government initiatives like AMRUT and the Smart Cities Mission have helped these cities evolve into new economic hubs. With increased economic activity and job opportunities, we expect Tier II cities to gain momentum as prime residential markets in the months ahead.
The report also observes that Indian multinationals such as Infosys and TCS are present in 80% of these cities, while foreign multinationals such as IBM are present in almost 60% of these cities, with new expansion plans. .
In Bhubaneswar, residential searches increased by 5% quarter-on-quarter (QoQ) and 12% year-on-year, while rental searches declined by 15% QoQ. About 37.7% of customers preferred homes between 1,000 and 1,500 square feet.
Residential searches in Coimbatore were up 12% quarter-on-quarter and 27% year-on-year, while rental searches were up 11% quarter-on-quarter and 30% year-on-year. According to the report, 43% of homebuyers prefer the 2 BHK configuration, 39% of homebuyers are looking for properties priced between Rs 25-50 lakh, followed by 23% in the Rs 50-75 lakh range.
In Jaipur, overall searches for residential properties increased by 5% YoY, while rental searches increased by 17% YoY. Demand for 3 BHK configurations constituted 57% and the majority (35%) of homebuyers’ preferred units in the 1,000-1,500 square foot bracket.
Residential searches in Nagpur were up 25% quarter on quarter and 49% year on year, while rental searches were up 84% year on year. There was a preference for 2 BHK, constituting 44% of total residential searches and 45% of properties preferred by homebuyers in the 1,000-1,500 square foot size bracket.
Residential searches in Indore were up 12% quarter on quarter and 2% year on year, while rental searches were up 6% year on year. The report observed that 42.5% of homebuyers preferred 3 BHK units and 22% of homebuyers would opt for units between 1,000 and 1,500 square feet in size.