Real Estate Trends from Magicbricks
Magicbricks adds Baroda to the PropIndex – now covers 12
cities Pan-India
PropIndex clearly indicates that this is a market driven
by end-users and consumer preferences have now come into sharp focus. This 10th
Edition Issue also features a complimentary copy of the IIM Bangalore-
Magicbricks Housing Sentiment Index Report.
Over the Past 2 years the Magicbricks PropIndex has
consistently reported on the major real-estate markets of Delhi, Gurgaon,
Noida, Ghaziabad, Mumbai, Pune, Ahmedabad, Kolkata, Chennai, Hyderabad and
Bangalore.
With substantial growth in volumes of magicbricks’ users
from smaller cities- this 10th edition of PropIndex introduces Vadodara as the
1st in a series of new and emerging markets with strong drivers, which shall be
introduced over time.
The key take-aways from Vadodara were that the real
estate market was largely stable and is witnessing a situation of over-supply,
particularly in the price bracket of Rs.25 lakh to Rs. 50 lakh. More details
are available in the full report available on newsstands and online.
The 10th PropIndex includes a complimentary copy of the
1st edition of the “IIMB-MB Housing Sentiment Index” (HSI), which gauges the
mood & sentiment of buyers – whether they are end-users or / investors, and
provides an early indicator of how markets would perform in the future. It clearly
indicates that while the consumer is willing to wait in anticipation of better
prices, he/she is also quite willing to search for the best deals over the
next 6 months.
The reported data clearly indicates that this is a
market driven by end-users and consumer preferences have come into sharp focus.
The number of enquiries indicates that there is a strong latent potential
demand. However buyers seem to be shying away from committing due to a slow
market.
While, investors, developers & landlords seem more
willing to negotiate in an effort to keep up sales velocities; End-user
customers are using this 6 to 8 month window to explore the markets at length,
search for a property of their choice and then enter negotiations to get a good
deal.
1, 2 and 3 BHK..
 |
| Mr. Sudhir Pai, Business Head of Magicbricks |
Apartments have emerged as the winner with all cities
showing robust demand. Smaller units of 1, 2 and 3 BHK are preferred over
larger premium apartments.
However, demand for premium apartments is driven by a
small group of buyers who show that sentiments have nothing to do with this
volume of demand. This being a lucrative segment, developers seem to prefer to
build more in this category, thereby creating abundant supply.
Speaking at the launch of the latest PropIndex, Mr.
Sudhir Pai, Business Head, Magicbricks said, “The industry would benefit by
using statistics to understand consumer sentiment, and be able to navigate
basis the direction that markets are likely to take. The volume of stock in
every market, if positioned correctly, can be used to bring back the end user.
Unlike 2010, when developers had little to woo the anxious consumer with, this
time round, they have plenty of stock and a negotiating power to turn the
markets around. The question is, can they take leadership and make Real Estate
the sector to kick start a sagging economy?”
Key highlights from the PropIndex:
** Despite
all uncertainties and weak sentiments in the market, property worth between Rs.
30 lakh to Rs. 50 lakh continues to top buyer preference nationally.
** Cities that
buck the trend are Kolkata, Gurgaon and Mumbai. In Gurgaon and Mumbai,
properties worth Rs. 1 Crore to Rs. 2 crore witnessed higher demand, except in
Thane and Navi Mumbai. In Kolkata property worth up to Rs. 20 lakh tops demand.
** Bangalore’s
Index was the biggest gainer with a rise of 17 %. It was followed by Kolkata
with 9 %, Mumbai, Delhi, Pune and Vadodara witnessed a 4 % rise each,
Ghaziabad, Ahmedabad and Hyderabad with 3 % and Gurgaon with 2 %. Only, Noida
registered a drop of 1 %.
** About 40%
demand was for multistory apartments across cities.
** About 30 %
supply was of 800 square feet -1,200 square feet. apartments.
More details are available in the 10th edition of
PropIndex and complimentary 1st edition of the “IIMB-MB Housing Sentiment
Index” (HSI) – Now on newsstands and online.
You may also email PropIndex@timesgroup.com for
the complete report.
About PropIndex..
MagicBricks.com PropIndex is a tool which empowers
property seekers and investors with detailed information on the movement of
residential apartment prices and supply of properties in India. No credible
property index can be a function of direct values as the changes are governed
by multiple factors.
MagicBricks.com PropIndex has taken this reality into
account and produced an index based on listing of apartments and their capital
and rental values on the website.
MagicBricks.com has over 5,00,000 active properties
posted by more than 1,50,000 active users in 300 cities and 10,000 localities.
Our users include owners, agents and developers.
Methodology
Apartment values are based on listings on
MagicBricks.com. These include multistorey apartments and single units on
plotted developments, referred to as builder floors on Magicbricks.com.
The Index is structured in such a way that individual
properties are aggregated into their respective cities and then to the National
Index. Weightages for PropIndex are based on the supply of properties within
the locality/city. Based on this structure, PropIndex gives a realistic picture
of trends in price/supply across different property markets in each city. We
have used different weightages for Listed Price Monitor/Rent Monitor.
Therefore, read as a whole, PropIndex along with tables provided for Listed
Price Monitor, Rent Monitor, Yield Monitor and Capital Values, gives an
excellent perspective of the property market performance in the quarter.
While listing and its values/supply provide a level of
understanding into the market, there are meticulous data checks to prevent
aberrations creeping into the Index. These are based on statistical
calculations, industry inputs and logical interpretations. The National
Property Index (NPI) is indicative of the extent of activity as well as price
movements across cities and localities in the major cities active on
MagicBricks.com. The index includes the top 11 cities (these have been chosen
based on their activity levels) and has an individual city report for each of
these cities. While the NPI and its movements are of interest to the expert
community of bankers, builders and investors, the PropIndex has also taken care
to explain the nuances of index movements at the locality level that would help
the huge base of MagicBricks.com consumers.
Insights into consumer demand have been gathered through
analysis of search information on the site. This helps understand the best
localities by demand, the type and configuration of units as well as the
budget-wise preferences. The PropIndex is the result of meticulous research at
the locality level and through detailed discussions with experts at
Magicbricks.com’s offline and online initiatives. The Indian real estate market
is dynamic and the PropIndex reflects those changes. Since it is derived from a
dynamic database, additions and deletions of localities happen as a function of
market dynamics.
Being the largest Property Portal in India - gives
Magicbricks.com access to the biggest aggregated user base in real estate in
India, Magicbricks.com is in the unique position to provide a reliable data
set, which is representative of the actual universe of Indian real estate
market.
To enhance transparency and clarity for all
stakeholders, this “Big Data” has been mined and leveraged in the form of
insightful reports such as the the 10th
edition of PropIndex and complimentary 1st edition of the “IIMB-MB Housing
Sentiment Index” (HSI) – Now on newsstands and online.
For Media Contact:
Mr. Aseem Seth - Head of Corporate Communications
CEO Corporate Office
Times Business Solutions Limited
+91 120 663 6338
+91 99102 73367
Email: aseem.seth@timesgroup.com
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