Buyers remained cautious but searched well for aspirational homes. Developers remained restrained but projects reached completion stages as all segments of the market prepared for a growth phase in Indian property market, aligned to the political optimism in India.
There was a drop in demand for affordable properties (budget range of Rs up to Rs 20 lakh) which remained significantly low at the national level (1%). Even at city levels, demand in this category fluctuated between a modest 1-5 per cent. As a result, supply in the segment led the existing demand in almost all cities, contrary to the industry buzz that the category is undersupplied and in greater demand.
The gap between demand and supply was most glaring in the southern cities. While an over-supply of 17-19 per cent was noted.
In contrast, the demand for luxury properties at the national level inched up to almost 30 per cent for properties priced at Rs 1 crore and above. However, even though demand has moved up, the luxury segment remains over-supplied in almost all cities.
At least a quarter of the city-wise demand was for the Rs 30-50 lakh category, showing that the middle class remained active and willing to buy.
Rental values across cities either dropped or stabilised in this quarter as compared to the Jan-Mar 2014 quarter. This is in direct contrast to the previous quarter, where PropIndex showed rental markets had witnessed a hike of 5-10 per cent approximately. As sales enquiries rose, rental demand posted a corresponding drop.
The 2BHK unit remained the most popular category across cities, combined affordability and came packaged with facilities; this reflects the aspiration of urban dwellers to own a property that would match their lifestyles.
With the recently announced Budget addressing several pressing issues of the housing sector has infused some positive sentiments in the market, the real impact of the same would be visible only after these measures are implemented.