#propindex

The latest edition of the PropIndex (Jan-Mar 2015) showed that home buyers were largely inclined towards larger housing units but were unwilling to expand their budget for the same.

Buyers in property markets are still wary of making a final purchase. This was clear in the latest PropIndex report which showed that capital values across cities have remained subdued or stable. The National Property Index stood unchanged from the previous quarter. City Indices across all cities showed a mixed trend. While the index for Noida recorded the highest rise of 9 per cent, maximum drop of 6 per cent was recorded for Mumbai.

Due to the unsold inventory pile up buyers seem to be in a trial mode. With a plethora of discounts and schemes on offer, buyers have the negotiation power.

This probably is the reason why buyers are increasingly looking for 3BHK units over 1 and 2BHKs, however, without extending their budget ranges. A rise of 3-10 per cent was noted in the demand for 3BHK units in the Jan-Mar 2015. However, budget preference at the national level showed maximum demand for properties priced at Rs 30-50 lakh. At the city level, mid-range properties were preferred. Properties worth Rs 40 lakh to Rs 1 crore were preferred across all cities.

Another trend that highlighted the growing preference for larger homes was the increased demand noted for residential homes and plots. A drop of up to 10 per cent was recorded in the demand for apartments across cities. This trend has been noted since the last six months.

Rental markets remained upbeat. It was particularly positive in markets of Delhi, Mumbai and Pune. IT driven locations and those offering easy access to the main commercial hubs were preferred for rental accommodations in these cities. Bangalore and Kolkata continued to yield a maximum rental return (4-5%) across different cities.

At the national level, Mumbai remained the most preferred city for buying a property while Bangalore retained its position as the most preferred city for rental accommodations.

Sruthi Kailas is a keen market researcher and is currently a part of the content and research team of Magicbricks.com