In India now even tier II cities are going digital for property search as per the survey conducted by Google India, one of the best search engines on internet. As per the study internet has given a boost to real estate industry. Nearly 50 percent buyers are making decisions based on research on the internet. This has resulted in transactions worth $43 billion out of which residential market share was $31 billion and commercial properties share was $12 billion.
A study conducted by Google on the basis of all India offline research by the agency Zinnov and real estate related search query trends on Google says that this phenomenon of researching online for real estate information was not limited to metros but also extended to buyers in Tier II cities. Nearly, 6,000 respondents in this survey rated the internet as the main source for property information followed by print media and sales/brokers offices. Twenty four per cent of respondents rated the internet as the top destination for information.
This study was conducted across 15 cities in India and it revealed that 74 per cent focused on residential buying while 26 per cent were searching for residential renting. Further, 23 per cent were in the market for resale property only and 30 per cent were looking for new property under construction.
Mr. Nitin Bawankule, industry director of Google India has said that real estate search has grown three times higher in the last three years, the rate over 350 per cent in tier II cities and over 53 per cent search queries are done with clear intention to purchase. He has further said that there is tremendous opportunities for real estate players as the industry is expected to grow by $140 billion by 2017 and internet audience base is expected to reach over 450 million by that period. Mobile phones usage is also on the rise for accessing real estate information online with nearly 55 per cent buyers using it to access the information.
Flat sizes trimmed to make prices affordable
Developers are trimming the size of Flats by around 100 Sq ft to make the prices affordable. This trend was noticeable in a study conducted in over 50,000 mid segment new houses across eight cities in India in the first quarter of 2014. As per the global real estate consultants Cushman & Wakefield (C&W) this has resulted in average 6 per cent in the cost of such apartments.
Among these cities, Noida has recorded the sharpest decline of 16 per cent in the newly launched home sizes. This has helped in controlling the cost of apartments despite a 17 per cent increase in rates per sq.ft. The report says that apartments announced in Mumbai have seen a reduction by 12 per cent in size to bring down the cost of apartments by 9 per cent over the last year.
Other cities which have seen drop in the size of the apartments are Ahmedabad 8 per cent, Chennai 3 per cent, Hyderabad 9 per cent, Pune 6 per cent and Gurgaon 3 per cent. However, in the same period the price per sq ft of new launches was not disturbed as per as possible.
Further, the consultant’s report also says Chennai, Gurgaon and Hyderabad had seen an additional push towards creating affordable prices which saw a decline in price of new launches. These projects were located in peripheral areas which are price sensitive and the sales were driven by end users.
Mr.Sanjay Dutt, executive MD, South Asia of Cushman & Wakefield has said that the developers have cut sizes as the residential sector is driven by end users demand. Also, the some of the developers were stressed due to mounting inventories and thought affordability is the key to ease the situation. Due to bad economic conditions and low confidence, the end users were shying away from making purchases for a long time.