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Buyers Prefer Affordable Properties, Demand for Peripheral Locations Rise

With 76% of 29,950 units launched in 2020-21, Pune saw the most launches in its peripheral areas

In the post-pandemic world, the city peripheral areas are the first choice of developers for launching new projects in light of the surge in demand in those locations. According to the latest ANAROCK data, as much as 58 per cent of about 1.49 lakh homes launched in 2020-21 are in the leading event cities’ peripherals.

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In 2018-19, the share of new launches in the peripheral locations was around 51 per cent in these cities. In 2019-20, more than 2.07 lakh new units hit these markets and the peripheral areas accounted for a 53 per cent share.

Among these cities, Pune saw the most  launches in its peripheral areas – 76 per cent of 29,950 units launched in 2020-21 – led by Mulshi, Pirangut, Daund, Chakan, Chikhali, Kamshet, and Undri, among others. In Mumbai-MMR, the share of new launches in the peripheries was around 67 per cent  of a total of 34,620 launched units. The locations included Panvel, Palghar, Visai, Virar, Kalyan, Badlapur, Bhiwandi, and Dombivli. Whereas in Delhi-NCR, around 19,090 units were launched, of which at least 57 per cent were in the peripheral areas such as Sohna, Sohna Road, Greater Noida West, and Yamuna Expressway.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “Homebuyer preferences changed perceptibly post the pandemic. The previous ‘walk-to-work’ concept no longer led home-buying decisions – instead, bigger and more affordable properties in greener, less polluted areas found favour, driven by work-from-home and e-schooling compulsions as well as safety concerns.” 

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Developers quickly changed track and those with land banks in the peripheries, and even otherwise, saw it an opportune time to launch new projects there, he added. 

New developments in the peripheries reduce the stress on the choked city-centres, and they become increasingly viable with ongoing infrastructure projects such as metros and ring roads which will boost their connectivity to the city centres.

 “It is very likely that some of the major office occupiers will soon de-centralise and bring their offices closer to their employees’ homes in these peripheries,” Puri said.

A similar trend is also visible in other cities like Chennai, Bengaluru, Hyderabad and Kolkata. In Chennai, the share of new launch units in the peripheries was 54 per cent of a total of 10,110 units launched in 2020-21. Some of the prominent areas with new project launches during the period include Poonamallee, Avadi, Vandalur, Sholinagnallur, Guduvanchery, and Chengalpattu. 

Bengaluru witnessed around 20,520 units launched in 2020-21, of which 46 per cent were in the city peripheries. The prominent peripheral locations include Chandapura-Anekal Road, Chandapura, Sarjapura, Yelahanaka, Devanahalli, and Sarjapur-Attibele Road. In Hyderabad, approx. 30,340 units were launched in FY21, of which at least 45 per cent were in peripheral areas such as Medchal, Miyapur, Nizampet, Shamshabad, Kokapet, Patancheru, and Tellapur. 

In Kolkata, the share of new launches in peripheral locations was the lowest among the top 7 cities – just 26 per cent of a total of 4,250 units launched in 2020-21. Prominent peripheral locations with high demand and supply include Barasat, Barrackpore, Serampore, Garia, and Howrah.

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