Housing.com Report Predicts Mumbai, Pune, Hyderabad Driving 2024 Real Estate Growth

Housing.com, Indian real estate technology platform, released its latest report analysing online homebuyer activity, and predicting Mumbai, Pune, and Hyderabad as the key players in the anticipated growth of the Indian residential real estate sector in 2024. These cities are identified as focal points of heightened market activity, poised to shape the narrative of the real estate sector in the coming months.

Positive Trends In Housing.com’s IRIS Index

Housing.com's IRIS Index (Buy), a crucial indicator of future demand in major Indian cities, is currently trending at 131 points in December 2023, achieving 83 per cent of its historical peak. This upward trend signifies a positive market outlook for the months ahead, indicating robust demand and potential growth.

The report highlights a growing trend toward larger home configurations, particularly 3+BHK apartments, with search queries for these spacious layouts increasing sixfold year-over-year in 2023. This shift suggests a changing preference among homebuyers for more expansive living spaces.

Luxury Living Takes Centre Stage in 2024

The demand for luxury apartments, particularly in the INR 1-2 crore bracket and above, is expected to surge in 2024. The report notes a remarkable 7.5 times increase in online property search volume year-over-year in 2023 for this segment.

Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com, & Makaan.com, commented on the resilience of the real estate sector in 2023 despite challenges. He cited the RBI's decision to pause rate hikes in April and the pent-up post-pandemic demand as factors boosting buyer confidence, leading to a notable uptick in residential demand across various market segments.

Ankita Sood, Head of Research at Housing.com, PropTiger.com, & Makaan.com, expressed optimism for 2024, anticipating momentum in both property buying and renting. She highlighted the surge in property prices and monthly rents in key areas of cities, attributing the growth to newfound economic and realty epicentres, not limited to metros but extending to Tier-2 cities.

Localities to Watch in 2024

Greater Noida West (Greater Noida), Mira Road East (Mumbai), Wakad (Pune), Malad West (Mumbai), Whitefield (Bengaluru), and others are identified as high-intent home buying activity hotspots. The top 10 trending localities for January-December 2023, based on online searches on Housing.com, include Greater Noida West, Mira Road East, Wakad, Malad West, Whitefield, Kandivali West, Borivali West, Wagholi, Electronic City, and Baner.

Rental Market and Emerging Trends in Tier II Cities

The report predicts significant growth in the rental market in 2024, particularly in Gurugram, Mumbai, Bengaluru, and Pune, driven by the resumption of back-to-office work policies. Tier II cities such as Jaipur, Indore, Lucknow, Mohali, and Vadodara are emerging as substantial markets for residential activity, showing the highest year-on-year growth in online property search volume for buying.

Gated Communities and Consumer Sentiment

Gated communities with ready-to-move-in properties are expected to play a crucial role in home purchases in 2024. The Consumer Sentiment Outlook indicates a preference among homebuyers for direct purchases from developers, showcasing renewed trust in new property developments compared to resale properties.

In conclusion, the Housing.com report provides a comprehensive analysis of homebuyer preferences and expectations, offering valuable insights for both homebuyers and developers in the dynamic Indian residential real estate market for 2024.