After COVID-19, apartment sales in Nagpur doubled

Real estate in Nagpur: Data from Liases Foras, a real estate research company, shows that sales of apartments in the primary market climbed from 1,383 in 2019–20 to 2,211 in 2023–24 (as of January). According to experts, this is the result of young people leaving during the lockdown and returning to their hometowns.

After COVID-19, sales of primary residential properties in Nagpur have increased significantly. according of January 2024, the number of units sold in Orange City's major market had nearly quadrupled, from 1,383 in 2019–20 to 2,211 in 2023–24, according per statistics gathered by real estate research firm Liases Foras.

In 2019–20, primary sales totaled 1,383 units, valued at Rs 486.32 crore. The data shows that it increased to 1,563 units in 2020–21, valued at Rs 539 crore.

The number of units sold in 2021–2022 was 2,332, valued at Rs 833 crore; in 2022–2023 it was 2,543 units, priced at Rs 1,207 crore; and in 2023–2024 (up to January 2024) it was 2,211 units, valued at Rs 1,257 crore.

Which is the main market? 

In the primary market, purchasers buy straight from developers in either an apartment that is still under construction or one that is ready to move into. Conversely, the secondary market is where buyers acquire resale homes from investors selling their holdings or from homeowners upgrading.

After COVID-19, Nagpur's primary market sales nearly doubled, but unsold inventory increased as well, rising from 11,556 units in 2019–20 to 14,300 units in January 2024. In January 2024, the value of unsold units increased to Rs 6,605 crore for 14,300 units from Rs 4,125 crore in 2019–20.

In Nagpur city, the average cost of an apartment increased over the course of five years, rising from Rs 35 lakh in 2019–20 to Rs 46 lakh in 2023–24.

Following the COVID-19 pandemic, the real estate market in Mumbai had a solid increase and a doubling of sales or property registrations. It is not surprising that the Nagpur real estate market is seeing similar trends. Following the COVID-19 pandemic, a significant number of people moved to tier-2 and tier-3 cities, which led to a substantial increase in demand for residential, commercial, and retail space, according to Pankaj Kapoor, Managing Director of Liases Foras.

According to Aditi Sirsikar, Director of Sirsikar Developers & Builders Private Limited, there has been a noticeable change in the workforce since the Covid-19 pandemic. A significant proportion of young people have chosen to either return to their hometown of Nagpur from other cities or adopt hybrid work arrangements that enable them to work remotely. According to him, Nagpur city has seen a socioeconomic transformation as a result of this inflow of youthful talent.

"At present, a number of sectors—including commercial buildings, rental properties, and entrepreneurial endeavors across multiple industries—are undergoing unparalleled growth. In addition to changing Nagpur's economic environment, this dynamic shift is making the city a more desirable location for development and investment, which benefits the real estate industry," Sirsikar continued.

Greater need for three- and four-bedroom apartments 

Developers claim that 3 and 4 BHK flats are in high demand in Nagpur's real estate market, whereas 1 and 2 BHK homes have lost ground after COVID-19.

"The Nagpur real estate market's sales have doubled after COVID-19, for two reasons. The first is the improvement in the city's infrastructure over the past five years, which includes the Nagpur Metro train system, new roads, flyovers, etc. In addition to making life easier, this has increased commercial activity. The second reason is that many of the young people who were in Mumbai, Pune, Hyderabad, and other cities during and after the COVID-19 pandemic returned during lockdown and chose to remain here, according to Kishore Kanhere, the founder and chairman of Ankit Construction.

Additionally, the emigration of a youthful population led to a decline in the demand for two-bedroom flats and an increase in the demand for three- and four-bedroom apartments. The bulk of homebuyers are between the ages of thirty and forty-five, and as they returned to their hometowns, retail and commercial enterprises also saw growth. The malls that were open before COVID-19 were losing money, but now there are four or five well-known malls in the city that are doing fairly well financially," Kanhere continued.

In the meantime, the online house search service Magicbricks stated in a survey published in March 2023 that homes between 1,000 and 1,500 square feet are greatly desired, which is also consistent with Nagpur's strong demand for three-bedroom apartments.

Manish Nagar, MIHAN, Wardha Road, Besa, and Narendra Nagar are the top five micro market searches in Nagpur, according to the report, which suggests that customers are drawn to the southern region of the city. According to the survey, South Nagpur neighborhoods have experienced rate appreciation in the range of 9–12% during the past five years.

Source: Money Control