Understanding the Indore Real Estate Market
The real estate market in Indore has been on a steady upward trajectory in recent years, making it an attractive destination for investors and homebuyers.
Often referred to as the “Mini Mumbai,” Indore is the largest city in Madhya Pradesh and a thriving commercial hub in central India. The city’s real estate market has witnessed substantial growth and development over the past decade.
Here’s a brief overview of the key aspects of the Indore real estate landscape:
A. Residential Real Estate
Indore offers a diverse range of real estate options, including residential apartments, independent houses, villas, and commercial spaces. The city’s real estate market caters to a wide spectrum of buyers, from budget-conscious individuals to high-end investors.
B. Rapid Urbanization
The city’s growing population, coupled with increasing urbanization, has fueled the demand for housing and commercial spaces. This trend has led to the development of new residential and commercial projects across the city.
C. Infrastructure Development
The city’s infrastructure has been improving steadily, with the construction of new roads, bridges, and public transportation systems. This has enhanced connectivity and accessibility, making various localities more attractive for real estate investment.
Current Home Buying Trends in Indore
In the initial quarter of 2023, the residential property market in Indore experienced a highly promising start, garnering considerable attention from both investors and potential homebuyers.
In the first quarter of 2023, the real estate market in Indore demonstrated a striking combined supply and absorption rate, averaging 95.75% across various property types, including apartment complexes.
A total of 633 projects were successfully sold during this period, surpassing the previous quarter’s sales figures significantly. This surge in sales signals a substantial uptick in demand and increased activity in the real estate sector. Furthermore, there was a noteworthy improvement in inventory overhang, reduced by 4 months, indicating a more balanced equilibrium between supply and demand in the market.
Following the pandemic, there has been a notable trend among homebuyers to search for more spacious residences. Hence, the demand for 3 BHK homes in Indore saw a remarkable surge during the first quarter of 2023, with a striking 70% rise in comparison to the corresponding period in 2022.
The quantity of 3 BHK units available also experienced a significant increase, growing from 36 to 118. This growth in availability signifies an increasing preference for larger residential accommodations in the city, as reported by the SAA.
In the evolving landscape of the residential property market in Indore, the choice between 2 BHK and 3 BHK apartments becomes pivotal.
A. 2 BHK Apartments
These have long been favoured by first-time buyers and young professionals due to their blend of affordability and comfort. They are ideal for those entering the real estate market for the first time, young professionals seeking a convenient living space, and real estate investors eyeing rental income opportunities.
B. 3 BHK Apartments
The rising demand for 3 BHK apartments in Indore reflects changing preferences. They are perfect for growing families in need of more space and privacy, professionals requiring a home office setup, individuals seeking a luxurious living experience, and those thinking long-term with an eye on potential returns on investment.
Advantages of Owning a 2BHK Property
Owning a 2BHK (2 Bedroom Hall Kitchen) property comes with a host of advantages that make it an appealing choice for many homebuyers.
Here are some key benefits:
2BHK properties are often more affordable than larger homes, making them an excellent choice for first-time buyers and those with budget constraints. They offer an opportunity to own a property without breaking the bank.
B. Easier Maintenance
With fewer rooms and spaces to maintain, 2BHK homes are easier to take care of. Cleaning, repairs, and renovations are less time-consuming and costly, allowing homeowners to enjoy a more relaxed lifestyle.
Lower utility costs and property taxes are common with smaller homes. You’ll spend less on heating, cooling, and overall upkeep, freeing up your finances for other priorities.
D. Space Utilization
2BHK properties are often designed with efficient space utilization in mind. They provide ample room for a small family or even a couple, offering comfortable living spaces and private bedrooms.
E. Resale Value:
2BHK properties are in constant demand in the real estate market, ensuring good resale value. This makes them a sound long-term investment.
Owning a 2BHK property is a practical and cost-effective choice that suits a wide range of preferences and needs, making it a popular option for homebuyers.
Advantages of Owning a 3BHK Property
Owning a 3BHK (3-bedroom, hall, and kitchen) property offers numerous advantages that make it a popular choice for homebuyers.
Here are some of the key benefits:
A. Space and Versatility
A 3BHK property provides ample living space, making it ideal for families. The extra rooms can be used as bedrooms, a home office, a guest room, or even a hobby room, offering flexibility and adaptability to changing needs.
B. Resale Value
3BHK properties tend to have better resale value than smaller units. They attract a wider range of potential buyers, ensuring a more liquid market and potentially higher returns on investment.
C. Room for Growth
Families often grow over time, and a 3BHK property can accommodate this growth without requiring a move. It provides the necessary space for children as they grow or for elderly family members who may need care.
D. Rental Income
If you don’t need all the bedrooms, you can rent out one or two rooms to generate extra income, helping offset your mortgage or other expenses.
E. Social Space
The hall or living area in a 3BHK property is typically more spacious, making it a great place for social gatherings, entertaining guests, and fostering a sense of community.
Indore's Popular Localities for 2BHK and 3BHK Homes
Indore, a city known for its rich culture and vibrant atmosphere, boasts an array of popular localities that offer ideal settings for 2BHK and 3BHK homes. Whether you’re seeking a cozy abode in a serene neighbourhood or a bustling locality with all the amenities, Indore has it all.
As an emerging 2-tier city of India, Indore has expanded and covered new spaces for residential growth. Some new areas of Indore that have become popular hubs of 2BHK and 3BHK homes are-
- Casa Greens in Talawali Chanda, A.B. Road
- County Villas located Near Shishukunj School, A.B. Bypass Road
- Sanjana Park 2 in CAT Road, Rau
Why is the AB Bypass Road gaining real estate momentum?
- AB Bypass Road is set to deliver a lucrative return on investment, thanks to substantial investments from NRIs and the government.
- AB Bypass Road seamlessly links with MR 10 and MR 11, providing excellent connectivity and convenient access to public transportation.
- Due to its location on the outskirts, properties in this area come at significantly lower prices.
- Another advantage of investing in a property outside the bustling city is the tranquil and peaceful environment it offers.
Why is the Rau Road gaining real estate momentum?
Rau Road, on the outskirts of Indore, connects industrial zones in Rau and Pithampur, offering affordable housing, proximity to industries, and IT accessibility. It passes through Amrapali Modern Township, Rau, Sonway, and Dhannad, with key residential projects including Amrapali Township, Sarthak Galaxy, Shubham Diamond City, Pithampur City Homes, and Shubham Greens, well-connected via NH 52, AB Road, and Western Ring Road, near prominent educational institutions, small shopping complexes, and major malls within 15-20 km, and proximity to employment hubs like Rau and Pithampur industrial areas, BRG Industrial Park, Super Corridor, and Bhanwar Kuan’s IT hub.
A Comparison of 2BHK and 3BHK Properties in Indore
A. The Absorption & Unsold Inventory
Over the past ten years, there has been a remarkable 89% reduction in unsold inventory, primarily attributed to robust property absorption rates and a decrease in the launch of new real estate projects. This trend reflects a healthier and more balanced real estate market, benefiting both buyers and developers.
B. New Launches Supply
Following the COVID-19 pandemic, the Indore real estate market is experiencing a promising resurgence. Evident through a continuous upsurge in the launch of new projects by diverse developers, this trend signifies renewed investor confidence and growing demand for residential and commercial properties in the region.
C. Pricing & Absorption
The Indore real estate market has demonstrated remarkable resilience, displaying consistent absorption rates even in the face of rising prices. This stability showcases the city’s robust property sector, which has managed to maintain investor and buyer interest, making it an attractive and enduring investment destination.
D. 3BHK v/s 2BHK 10 Years Trend
Here’s what 3BHK trends look like-
- The demand for larger apartments (3BHK & 4BHK) post-COVID has surged to levels reminiscent of 2014-15. After experiencing a significant peak in sales prices in 2016, the market is now stabilizing and is bolstered by strong absorption rates.
- The unlocking of reserve funds, reduced home loan interest rates, and the return of working professionals to the city due to reverse migration have all contributed to the increased demand for larger apartments.
- Currently, there is a greater preference for larger 3BHK/4BHK units, driven by shifting aspirational values and improved access to funding sources.
Here’s what 2BHK looked like-
- The increased supply of 2-bedroom (2 BHK) units has led to fluctuating price dynamics, creating challenges for absorption rates and subsequently causing a decline in the sales of these 2 BHK units. This oversaturation has disrupted the market equilibrium and impacted consumer demand negatively.
- The 2BHK has risen from the absorption of 1000 units in 2014 to a significant figure of 1300 units in 2023. The prime reason for this shift in the availability and absorption rates of 2BHKs traces to the average unit size and weighted average price. Both these factors have shown positive results.
Projects for 2BHK and 3BHK Homes in Indore
A. Casa Greens Prime
Casa Greens Prima stands as a splendid residential masterpiece that seamlessly blends trust, excellence, and cutting-edge innovation. This modern community is meticulously designed and perfected to cater to your ultra-modern lifestyle, showcasing a contemporary township crafted with precision and finesse.
Amenities in Casa Greens Prime
- Heavy Plantation on Campus & Around Gardens
- Weather Trendy Planning
- Natural Ventilation
- Effective Space Utilisation
- Designer Living Room
B. Sanjana Park-II
Sanjana Park-II represents the ambitious endeavour of the renowned Agarwal Group, a name synonymous with trust. This visionary group is dedicated to enhancing the quality of life in Indore city, and Sanjana Park-II is a tangible manifestation of this commitment. It is the unwavering trust and reputation of the Agarwal Group that has propelled its remarkable growth.
This upcoming project, a venture by the owners of Agarwal Public School through Agarwal Real City Pvt. Ltd., is strategically situated near Nakhrali Dhani, CAT Road, Rau. The development showcases unique and unparalleled infrastructure, introducing a range of facilities that were previously unseen in the city.
Amenities at Sanjana Park 2
- Play area for kids
- Jogging Track
- Swimming Pool
- Steam Sauna Bath
- Open Air Theater
C. County Villas
County Villas have been designed keeping in mind the optimum utilization of natural elements. The exquisite architecture extends to the outside to combine as a whole.
Amenities at County Villas
- A lavish Clubhouse
- Swimming Pool
- Table Tennis
- Basketball Court
- Volleyball Court
- Tennis Court
A scrutiny of the above properties of 2/3 BHK flats shows that the real estate scenario of Indore is experiencing a boost in demand, as these residential options offer both affordability and spaciousness, attracting a diverse range of homebuyers and investors.
Here are the highlighted developments for both 2BHK and 3BHK homes in Indore
A. Casa Greens Prime
- Meticulously designed modern community.
- Heavy plantation on the campus and around gardens.
- Weather trendy planning for a comfortable living environment.
- Emphasis on natural ventilation.
- Effective space utilization.
- Designer living room for added luxury.
B. Sanjana Park 2
- A project by the renowned Agarwal Group, known for trust and quality.
- Strategically situated near Nakhrali Dhani, CAT Road, Rau.
- Unparalleled infrastructure and unique facilities.
- Amenities include a clubhouse, kids’ play area, jogging track, gardens, gymnasium, swimming pool, steam sauna bath, temple, and an open-air theatre.
C. County Villas
- Designed for optimum utilization of natural elements.
- Exquisite architecture that extends to the outside, creating a harmonious whole.
- Amenities such as a lavish clubhouse, swimming pool, table tennis, basketball court, volleyball court, tennis court, and gymnasium.
These developments cater to both 2BHK and 3BHK homes, providing a range of amenities and features for a modern and comfortable lifestyle in Indore.
Conclusion: Making the Right Choice
The real estate market in Indore is experiencing remarkable growth and offers a wide range of opportunities for both investors and homebuyers. Indore’s expanding population and infrastructure development are driving demand for residential and commercial properties. The surge in sales and decreased inventory overhang in the first quarter of 2023 highlight the city’s strong real estate sector.
The choice between 2BHK and 3BHK properties in Indore depends on your specific needs and preferences. 2BHK properties are affordable, easy to maintain, and offer excellent rental potential. They are ideal for small families or individuals. On the other hand, 3BHK properties provide more space and versatility, making them suitable for larger families or those looking for extra room for a home office or guests.
Casa Greens Prime, Sanjana Park 2, and County Villas are some of the prominent residential projects in Indore, each offering unique amenities and features for a modern and comfortable lifestyle. Whether you choose a 2BHK or 3BHK property, Indore’s real estate market is poised for growth and presents a promising investment landscape.
Ready to explore Indore’s real estate opportunities?