Nagpur Real Estate Boom: How Post-Covid Trends Are Driving Housing Demand

The real estate market in Nagpur has experienced significant growth in the sale of residential homes since the Covid-19 pandemic. With increasing demand and changing buyer preferences, the city has seen a remarkable rise in property sales, particularly in the primary market. Let’s explore the key reasons behind this surge, the latest trends, and what it means for homebuyers and investors.

Nagpur’s Primary Market Sales Nearly Double

Data from real estate research firm Liases Foras shows that the number of apartments sold in Nagpur’s primary market has almost doubled over the past few years. In 2019-20, the city recorded 1,383 units sold, while in 2023-24 (up to January 2024), sales reached 2,211 units.

Here’s a breakdown of the sales data over the last five years:

Year	Units Sold	Total Sales Value (in Crores)
2019-20	1,383	Rs 486.32 crore
2020-21	1,563	Rs 539 crore
2021-22	2,332	Rs 833 crore
2022-23	2,543	Rs 1,207 crore
2023-24*	2,211	Rs 1,257 crore

*Data up to January 2024

The increasing sales indicate a strong demand for homes in Nagpur, with buyers preferring to purchase directly from developers.

Understanding the Primary Market

The primary market refers to homes that are bought directly from developers, either under construction or ready-to-move-in. This is different from the secondary market, where buyers purchase resale properties from existing homeowners or investors looking to sell.

Why Are More People Buying in the Primary Market?

1. Better Payment Plans: Developers offer attractive payment plans, making it easier for buyers to afford a new home.
2. Modern Amenities: New projects come with the latest facilities like clubhouses, security, and landscaped gardens.
3. Customization Options: Buying an under-construction home allows customization, unlike ready-to-move-in resale properties.

Rising Unsold Inventory

Even though sales have increased, the number of unsold apartments in Nagpur has also risen. In 2019-20, there were 11,556 unsold units, which grew to 14,300 by January 2024.

Year	Unsold Units	Total Value of Unsold Units (in Crores)
2019-20	11,556	Rs 4,125 crore
2023-24*	14,300	Rs 6,605 crore

*Data up to January 2024

This indicates that while demand is high, developers are also launching new projects to keep up, leading to more available inventory in the market.

Increase in Property Prices

The average cost of an apartment in Nagpur has increased over the last five years. In 2019-20, the price of an apartment was around Rs 35 lakh, which has now risen to Rs 46 lakh in 2023-24. This price rise is due to increased demand, rising construction costs, and the overall development of the city.

Why Are Property Sales Rising?

Experts believe that several factors have contributed to the growth of the Nagpur real estate market post-Covid:

1. Post-Covid Migration and Remote Work

Many people, especially young professionals, returned to their hometowns like Nagpur during the Covid-19 lockdowns. Some embraced remote work and continued living in Nagpur rather than moving back to metro cities like Mumbai, Pune, or Hyderabad.

Aditi Sirsikar, Director at Sirsikar Developers & Builders, says, “Post-pandemic, many young professionals have either moved back to Nagpur or chosen to work remotely. This has led to a socio-economic transformation, increasing demand for residential properties.”

2. Infrastructure Development

Nagpur has witnessed major infrastructure improvements in recent years, including:

• Nagpur Metro: Enhanced connectivity within the city.
• New Roads & Flyovers: Reduced traffic congestion, making commuting easier.
• MIHAN Project: A booming economic zone attracting new businesses and residents.

Kishore Kanhere, Founder & Chairman of Ankit Construction, says, “The infrastructure boost has made life easier and led to business growth, which in turn has increased demand for homes.”

3. Shift in Housing Preferences

Homebuyer preferences have also changed post-Covid. The demand for 1 and 2 BHK apartments has declined, while 3 and 4 BHK units are now more popular.

Kanhere explains, “Most homebuyers are between 30 to 45 years old, and they prefer larger homes. Also, as malls and commercial spaces in Nagpur have started doing well, the overall real estate sector has benefited.”

Top Localities for Homebuyers in Nagpur

According to a report by Magicbricks, the most searched areas for homebuyers in Nagpur are:

1. Manish Nagar
2. MIHAN
3. Wardha Road
4. Besa
5. Narendra Nagar

Properties in these areas have seen price appreciation of 9-12% over the past five years. The southern part of the city is particularly popular due to better infrastructure and amenities.

What This Means for Homebuyers and Investors

For Homebuyers:

• If you’re looking for a home in Nagpur, now is a great time to buy as demand continues to rise.
• With growing infrastructure and development, property values are expected to appreciate in the coming years.
• 3 and 4 BHK apartments are more in demand, making them a better investment for the long term.

For Investors:

• Investing in properties in high-demand areas like MIHAN and Wardha Road can yield good returns.
• Rental demand is also increasing, especially in commercial hubs.
• With Nagpur’s rapid growth, real estate investment is becoming more lucrative.

Conclusion

Nagpur’s real estate market has seen a strong revival post-Covid, with primary market sales nearly doubling in the past five years. Factors such as remote work, improved infrastructure, and shifting buyer preferences have played a key role in this growth. As the city continues to develop, both homebuyers and investors stand to benefit from the ongoing transformation in Nagpur’s real estate landscape.

If you’re considering buying a home or investing in property, now is the right time to explore the opportunities Nagpur has to offer!