Mumbai: NoBroker.com, India’s first Proptech unicorn that is 100% brokerage-free, has released ‘India Real Estate Report 2021’ for the fifth consecutive year. The insights are based on a survey conducted with over 21000 customers across Delhi-NCR, Bengaluru, Mumbai, Pune, Chennai, and Hyderabad, as well as the data captured from more than 16 million users on its platform.
The company which is India’s largest brokerage-free property portal saved INR 2874 Cr in brokerage in 2021 across all the cities where it is present. Bangalore saved maximum (INR 787 Cr) for the third year in a row, followed by Mumbai (INR 653 Cr), Chennai (INR 497 Cr), Pune (INR 424 Cr), Hyderabad (INR 264 Cr) and Delhi-NCR (INR 250 Cr).
The most interesting trend that was observed was that property emerged as the most popular investment option for 76% of people. It indicates the increasing sense of security that comes from buying a house. SIPs/stocks and gold were very distant second and third. Bitcoin was selected by a very tiny percentage.
The thought was echoed in survey with sellers where 43% of them suggested that they were looking to purchase another property for investment purpose in 2022. These findings along with the fact that 84% of people believing that right now is the best time to buy a property for end use, suggest that the market is very buoyant right now. The findings are sync with the continued WFH culture and hybrid work setup, discounts offered by builders and historic low home loan rates.
Due to partial lockdowns and restricted movements buyers have had an opportunity to save money, which would otherwise be spent on vacations and other lifestyle choices. This coupled with the need of owning a house translated into bigger buying budgets. 15% of people were thus looking to buy a house over INR 1 crore (4% higher than 2020 and 8% higher than 2019).
The demand for 3BHKs has also ramped up to 33% compared to 29% last year. 2BHKs continue to be the most in demand unit size opted by 37% of people. However, some percentage of their popularity is distributed into 3 and 4 BHK units.
As offices had started reopening towards the last quarter of 2021, there’s been a monumental shift for staying close to workplace. 80% of tenants this year prefer to stay close to their workplace while 78% of buyers are looking to purchase a house within the city. In 2020’s report, distance from workplace had slid down many notches in the priority list for tenants.
Ready-to-move-in properties continued to be preferred by 78% of buyers. Delayed constructions and possessions are the greatest drivers of this trend.
It was also observed that 73% of people consider Vaastu a relevant factor for buying a house. 55% of tenants also check Vaastu.
The report also highlighted a steady decline in broker services over the years with only 13% of people still relying on it. The option for brokerage-free properties is the biggest factor for tenants to choose website over other alternatives. The pandemic has further accelerated the pace of digital adoption across the industry.
As the world becomes more digital, the concept of video walkthroughs – that gained tremendous traction during 2020 – will stay relevant in the coming years as well. This solution has been a better alternative to shortlist or even rent properties as it gives better idea of size, dimensions and layout over still images. 77% of tenants in 2021 believe that video tours significantly help people to view properties.
Saurabh Garg, Co-Founder and CBO – Nobroker.com said, “Bigger houses in demand and bigger buying budgets along with a preference for buying within the city limits indicate a positive environment for the real estate sector in 2022. 2021 has been a happening year with lots of positive changes and innovations across the real estate market. While the demand for ready-to-move-in properties remained relevant, video tours gained significant traction. Likewise, homeownership for end use will continue to be a valued asset owing to the historically-low interest rates of home loans and the security that residential properties offer. Although, for the foreseeable future, real estate will be an end users’ market, it is relieving to know that the investors’ confidence is also returning. The pandemic has also ironically paved way for technological intervention.”
53% of landlords reduced or waived off rent during the pandemic with maximum numbers coming from Delhi-NCR and Pune (58% each). However, 46% of them have increased their rent post Diwali, indicating a rent inflation across cities.