Tier-II cities emerging as real estate growth engines: Magicbricks Report

NEW DELHI: Tier-II cities Nagpur, Coimbatore, Bhubaneshwar, Indore and Jaipur are emerging
as real estate growth engines, according to a recent report by Magicbricks.
The report highlights that Nagpur (49%), Coimbatore (27%), Bhubaneswar (12%) observed the
highest year-on-year (YoY) growth for residential searches and Nagpur (84%), Coimbatore
(30%), and Indore (6%) exhibited the highest YoY growth for rental searches.
Sudhir Pai, CEO of the company, said, “Covid-19 was a watershed moment for real estate,
especially for tier-II cities that have emerged as real estate growth engines. Additionally,
government initiatives like AMRUT and the Smart Cities Mission have helped these cities evolve
into new economic hubs. With an uptick in economic activity and employment opportunities, we
expect tier-II cities to gain more momentum as prime residential markets in the coming months.”

The report also observes that Indian MNCs such as Infosys and TCS are present in 80% of
these cities while foreign MNCs such as IBM are present in almost 60% of these cities, with
further expansion plans.
In Bhubaneswar, the residential searches increased 5% quarter-on-quarter (QoQ) and 12% YoY,
while the rental searches declined 15% QoQ. About 37.7% of the customers preferred homes
between 1,000-1,500 sq ft.
Residential searches in Coimbatore grew 12% QoQ and 27% YoY, while rental searches
increased 11% QoQ and 30% YoY. As per the report, 43% of home buyers prefer the 2 BHK
configuration, 39% of home buyers are searching for properties priced between Rs 25-50 lakh,
followed by 23% in the Rs 50-75 lakh range.
In Jaipur, the aggregate searches for residential properties increased 5% YoY while the rental
searches grew 17% YoY. The demand for 3 BHK configurations constituted 57% and majority
(35%) of the home buyers preferred units in the 1,000-1,500 sq ft bracket.
Residential searches in Nagpur grew 25% QoQ and 49% YoY, while the rental searches
increased 84% YoY. There was a preference for 2 BHKs, constituting 44% of the total residential
searches and 45% of the home buyers preferred properties in the size bracket of 1,000-1,500 sq
ft.
Residential searches in Indore increased 12% QoQ and 2% YoY, while the rental searches
increased 6% YoY. The report observed that 42.5% of home buyers preferred 3 BHK units and
22% of home buyers keen to opt for units in the size range of 1,000-1,500 sq ft.