* Security, proximity to school, local markets and offices are key deciding factors
* Whitefield, Sarjapur Road, Electronic City and Bellary Road most preferred localities
With India intermittently unlocking, new encouraging trends are now visible in the real estate sector after a period stagnancy. The sector is witnessing a tectonic shift and according to Magicbricks data, consumer preference in Benglauru is shifting towards peripheral areas due to affordability.
The shift in consumer demand towards Bengaluru’s peripheral areas has been accentuated by the demand-supply mismatch in the less than Rs.5000/sqft price category. Magicbricks data also suggests that Bengaluru’s consumer demand for BHKs and size hardly remain unchanged pre-COVID vis-à-vis post-COVID indicating that home buyers are retaining size preference but reducing budgets to move to the peripheries of the city in search of larger houses at lower cost.
Magicbricks data suggests that peripheral areas near employment hubs like Whitefield, Sarjapur Road, Electronic City and Bellary Road were the most preferred localities for home buyers during the April-May-June period of 2020. The consumer demand in these localities are driven by factors like affordability, better access to IT hubs and sound connectivity to the airport. The extension of metro lines from Baiyappanahalli – Whitefield and RV Road – Bommasandra is likely to boost the demand for the economic hubs of Whitefield and Electronic City in the future.
Commenting on the changing consumer behaviour, Mr. Sudhir Pai, CEO, Magicbricks, said: “We are experiencing a strong recovery in demand after searches dipped by 50% in April. Buyers are back in the market and our data suggests that Bengaluru’s recovery rate is faster than the national average. There is an emerging trend towards larger homes; but with budgets which are lower than earlier, buyers are searching more towards peripheral areas of the city. Our recent survey suggests that around 33% of home buyers in Bengaluru prefer under construction properties, which is significantly higher than the national average, reflecting their trust in branded developers. We are also witnessing an uptick in demand for plots and from NRIs.”
Bengaluru’s home buyers also displayed increasing propensity towards ready-to-move in properties with as many as 67% respondents suggesting that they want to cut down risk factors by opting for ready-to-move in units. Overall, 74% users are planning to reduce their budget preference and around 50% have cut it by 10-30%. Factors like gated community and proximity to schools and colleges remain the two main priorities for home buyers while selecting a property while amenities such as clubs, gyms and open areas have lost their sheen since COVID-19. Our survey also suggests that in Bengaluru, 55% of the respondents said that they would choose any developer (Tier 1/2) who can give the most economical option/best deal.
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