Unlike other major cities like Mumbai, Delhi, Chennai and Bengaluru, real estate demand in Ahmedabad and Pune is higher in investment segments, said a real estate survey released by ICICI Securities, the largest integrated securities firm. The survey was conducted across eight Indian cities including Mumbai, Delhi/NCR, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad and Pune among 2697 online, 6767 offline buyer respondents as well as 57 property consultants.
As per the survey, Indian home buyers are cautiously optimistic about the property prices. "They are primarily interested in mid-income housing (Rs 20-50 lakh) and are conservative on ticket size. End-user demand is higher in Mumbai, Hyderabad and Bangalore, while investor demand is higher in Ahmedabad and Pune," the survey stated. Also, the per month inventory is highest among Ahmedabad and Chennai, while it is lowest in cities like Mumbai and Bengaluru. "Finished inventory is higher in Ahmedabad, Hyderabad & Kolkata. Except in Pune, Bengaluru & Hyderabad, prices in other cities have reached earlier highs or beyond," the survey further stated.
Moreover, 53 per cent brokers have seen increased queries in affordable housing and 44 per cent have seen drop in queries for the premium segment. The under-construction supply in eight major cities is around 378 million square feet, of which 64 million square feet is ready while current annual demand stands at around 372 million square feet, according to the survey. The I-Sec survey said that rental market is stable and trending upwards - 53 per cent of tenants have seen rentals increasing in the past 12 months The average increase in rentals has been 4.7 per cent. Indian household spends 12 per cent of its monthly income on rentals.