Prospective homebuyers expect property prices to increase
- Real estate tops as preferred investment asset class for 47% respondents.
- About 58% of homebuyers, who are primarily end-users, are looking for ready-to-move-in (
- Housing prices recorded a 7% year-on-year increase in April-June quarter of 2022.
AdvertisementReal estate is India’s most-preferred asset class for investments in
Housing.com, one of India’s full-stack prop-tech platforms, and NAREDCO (National Real Estate Development Council) conducted a joint survey of over 1,000 participants to gauge consumer sentiment and released the ‘Residential Realty Consumer Sentiment Survey H2 2022' report.
As per the survey findings, 47% of respondents prefer to invest in real estate, the highest compared to other asset classes such as stocks, gold and fixed deposits. The data shows that 21% of respondents prefer to invest in the stock market, 16% in fixed deposits and 15% in gold. Housing prices recorded a 7% year-on-year increase in the April-June quarter of 2022.
"India's residential market has seen a sharp revival in demand after the second wave of the Covid-19 pandemic. The rising cost of borrowing, increase in input costs and strong demand has resulted in a rise in housing prices," said,
Homebuyer sentiment has received a significant boost due to increased importance of home ownership, the need for extra space amidst hybrid-work policies adopted by many companies, and the exigency for safety and security. The survey observed that 58% of homebuyers, who are primarily end-users, are looking for ready-to-move-in (RTMI) properties.
"Real estate sector in India is witnessing green shoots of recovery, thanks to various policy interventions implemented by the government, aiding the real estate sector to grow and ensuring speedy recovery of the industry post-Covid,” said
Will the repo rate hike deter homebuyers in India?
The residential markets across India remain upbeat despite growing concerns about rising interest rates. The expected increase in
The repo rate stands at 5.4% as of now and the RBI may hike rates by 50 bps in its upcoming policy meeting this week.
“While the hike was imminent, it remains below the pre-pandemic levels of 5-6%. The confidence in future earnings, coupled with the pandemic-induced importance of homeownership, will continue to drive residential sales not only in the top metros but also in the Tier-II cities,” added Sood.
AdvertisementAccording to the Housing.com-NAREDCO report, the income outlook continues to strengthen and has reached an all-time high of 65% since 2020.
“Declining interest rates were a key reason for the massive housing demand surge in the past two years. Also, the pandemic reinstated the importance of owning physical assets like real estate. This time around, the demand revival even included the previously rent-favouring millennials – who continue to be on the market for homes,” Anuj Puri, Chairman -
Digital sales and marketing platforms have become the mainstay not only to search for a home, but also to close deals online or in just one or two site visits. The survey shows that 34% of homebuyers have suggested that they are willing to buy a home completely online or just after one site visit.
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