Tier-2 cities on growth path witness big leap in searches

With the current enthusiasm witnessed by the Indian real estate sector, the number of consumers looking for property in Tier-2 cities has grown significantly between Q1’CY17 and Q1’CY18, suggests data trends by makaan.com. An analysis on home search trends conducted in 25 cities of India indicates 173% growth in traffic from tier-2 cities between Q1’CY17 and Q1’CY18. 

Visakhapatnam (Andhra Pradesh) registered the highest growth in terms of searches at 489% YoY followed by Patna (Bihar) which saw visits growth by 400% YoY. Coimbatore (Tamil Nadu) and Bhubaneswar (Odisha) followed closely, at 334% and 319% growth in searches. Additionally, Ahmedabad, Lucknow, Indore, Patna, and Jaipur emerged as visible gainers where searches had grown remarkably. 

Lead generation from tier-2 cities accounted 23% to an overall lead generation which grew by 242% between Q1’CY17 and Q1’CY18. While 60% of this growth in TierII cities was with respect to the capital market, the remaining 40% was in the rental market. Surat witnessed the highest lead generation in Q1’CY18 at 758% followed by Visakhapatnam at 532% and Coimbatore at 428% respectively. 

Overall listings have grown by 22% in Q1’CY18 when compared to Q1’CY17. Of these, 88% are buy listings while the remaining are rent listings. Lucknow (UP) saw 16.2% increase in new listings followed by Ahmedabad at 11.7% between Q1’CY17 to Q1’CY18...

Ravi Bhushan, Group Chief Product and Technology Officer, Housing, PropTiger, Makaan.com said, “There is a clear trend that comes to the fore with respect to the demand and supply equation in tier-2 cities. These cities are doubling up as major centres of economics and that is evident in the way that the housing market is shaping up. This pickup in listings, searches and the intent of people to inquire about a purchase is encouraging for the real estate market in India.” 

“Sentiments in the real estate market has been dim in general in the past couple of years. The fall in property prices was also not enough to improve buying sentiment. However, new trends have now emerged in the property market, and they seem positive. The adverse effect of all the reformatory measures including demonetization, GST, RERA and the insolvency code on the property market is about over,” added Bhushan.