The real estate market continues to be dominated by end users, with over 67% purchasing property for their own use. According to the FICCI-Anarock report, at least 33% of prospective buyers aim to purchase property from an investment perspective, compared to last year, given the significant increase in prices in the top seven cities. A decline of 3% is expected.
According to the ‘Home Buyer Sentiment Survey – H1 2024’ released at the FICCI Real Estate Investment Summit held in Mumbai on October 18, the real estate market continues to be dominated by end users, with over 67% self-owned. You are purchasing real estate for the purpose of use. (FICCI)
Most buyers said homebuyers’ main demands continue to be timely completion of the project (98%), improved construction quality (93%) and a well-ventilated home (72%), the report said. pointed out.
More than 67% of survey participants purchase real estate for their own use. Compared to the previous survey (H2 2023), the H1 2024 survey saw a 3% increase in the proportion of participants looking for end-use real estate. This trend is likely to continue as home ownership provides a sense of security and security, according to the second edition of the Home Buyer Sentiment Survey (H1 2024) released at the FICCI Real Estate Investment Summit in Mumbai. Highly sexual. October 18th.
Affordable housing struggles to meet expectations, with more than 53% of homebuyers expressing dissatisfaction due to issues related to location, construction quality, and unit size.
The study also found that mortgage rates below 8.5% have little influence on the purchase decision of 71% of respondents, while interest rates above 9% have a significant influence on 87% of potential buyers. pointed out.
Investors take a breather, and some buy real estate to use capital gains for future entrepreneurial endeavors
There was also a notable shift in investors taking a breather once again and putting property purchases on hold. Compared to the survey in the second half of 2023, the increase in real estate prices resulted in a 3% decrease in the proportion of participants purchasing real estate from an investment perspective rather than for own use. Currently, at least 33% of prospective buyers are looking to purchase property from an investment perspective.
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An important new trend indicates the interest of investors entering the market with the aim of securing stable rental income. This demand is primarily driven by the fact that rental values in prominent micro-markets in major cities have increased by 70% over the past two years. A small number of investors invest in real estate to leverage capital gains for future entrepreneurial activities, while some investors focus on establishing an emergency fund and others invest in retirement. Priority is given to contributing to later savings. Additionally, some people have been shown to use their investment returns to achieve their aspirational travel goals.
Demand for ready-built houses is decreasing
Demand for ready-built homes has decreased significantly. The ratio of built homes to new homes is now 20:25, compared to 46:18 in the first half of 2020. As many as 51% of respondents preferred 3BHK units, indicating an increasing demand for larger homes.
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Luxury homes and luxury homes attract attention
While the budget range of Rs 4.5 million to Rs 90 million remains the most preferred budget for more than 35% of prospective homebuyers, luxury and high-end homes are getting a lot of attention. Currently, at least 45% of respondents want to buy a home priced above Rs 9 million.
Most Popular Property Type Apartment, Popular Land in South India
In terms of segments, apartments remain the most preferred property type (58%), but the survey showed that residential land is gaining popularity, especially in southern cities. In particular, potential buyers are increasingly interested in residential land, with at least 20% of prospective real estate buyers wanting to invest in residential land.
An analysis of trends by city reveals that southern cities have a higher preference for residential land. In Chennai it was 30%, in Bengaluru 29% and in Hyderabad 27%. Several big-name development companies have been ramping up residential land projects in these southern cities in recent years, and buyers are coming forward to close deals. Similarly, villas and row houses are also widely preferred in these southern cities, the survey showed.
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The survey collected responses from 7,615 participants across 14 cities and was conducted from January to June 2024.
In his keynote address, SEBI Executive Director Pramod Rao emphasized the importance of the regulatory framework in fostering sustainable growth in the sector. “Investor trust is essential to the long-term success of the industry, and SEBI’s focus on transparency and governance is key to building this trust,” Rao said.
Sandip Somany said: “The significant shift in consumer preferences from ready-to-move homes to properties under construction indicates increased trust in developers and the regulatory environment. “This trend reflects the maturation of the market and the positive impact of regulatory measures such as RERA.” , Somany Impreza Group, former Chairman of FICCI, Mentor of FICCI Committee and CMD on Urban Development and Real Estate.
“India’s economic growth is driving rapid expansion of the real estate sector, with the housing market expected to grow at a CAGR of 25.6% to reach $1.4 trillion by 2029. It is driven by the growing demand for ultra-luxury properties and significant investments,” said Raj Menda, Chairman, FICCI Committee on Urban Development and Real Estate and Chairman of the Supervisory Board, RMZ Corporation. .
He noted that today’s home buyers, primarily millennials, tend to buy larger homes and prioritize high-quality products. “They don’t just want shelter; rather, they want spaces that embody durability, aesthetic appeal, and long-term value, even if they are expensive. They want low-risk, long-term They tend to prefer investments that are perceived to have a stable return over time. Therefore, one of the main demands from home buyers is to ensure that the project is completed in a timely manner,” he said. Said.
Anuj Puri, Chairman and Founder, ANAROCK Property Consultants He said it was timely and highlighted trends. This study provides all industry players with important insights into the Indian real estate market from a consumer perspective.
