Despite increasing property prices, the demand for bigger apartments continues unabated: Kotak Institutional Equities
Residential real estate recorded another fresh high in 3QFY24, with pre-sales of 301 mn sq. ft up 26 percent year on year crossing the previous peak of 259 mn sq. ft in 2QFY24, as per Kotak Institutional Equities.
Pricing momentum was robust, with average realizations at Rs.7,609/sq. ft with Gurugram and Bengaluru seeing larger increases.
Hyderabad (53 percent YoY) and MMR (28 percent YoY) led the sales growth, followed by Bengaluru (19 percent YoY) and NCR (12 percent YoY).
All-India residential sales for 3QFY24 stood at 301 mn sq. ft (26 percent YoY, 16 percent QoQ), with 9MFY24 sales at 797 mn sq. ft (24 percent YoY) — this puts the sector in a good position to cross the 1 bn sq. ft-mark for full-year FY2024E, the brokerage said.
The demand in 3QFY24 was led by Hyderabad which saw sales of 55.9 mn sq. ft followed by MMR, Bengaluru, and NCR.
A survey by FICCI-ANAROCK found that 50 percent of homebuyers prefer larger homes. The survey found that the highest homebuyer demand is now for 3BHKs, with at least 50 percent of respondents picking this size. 38 percent of respondents favour 2BHKs. The demand for 3BHKs stood at 42 percent in the H2 2022 edition of the survey.
Despite increasing property prices, the demand for bigger apartments continues unabated and is, in fact, increasing. 3BHKs are particularly in vogue in Bengaluru, Chennai, Hyderabad, and Delhi-NCR. In hyper-pricey MMR, 44 percent of respondents preferred 2BHKs. The demand for 1BHK units is being primarily evident in the western markets of the Mumbai Metropolitan Region (17 percent) and Pune (10 percent).
[With Inputs from IANS]
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