Mumbai: Real estate remained the most preferred asset class for investment among 59 percent of Indians in the first half of this year, as 57 percent of investors said they are buying premium properties to earn rental income, driven by surging rental rates in cities, according to a report on Friday.
About 51 percent of respondents clearly prefer 3 BHK units, indicating a significant surge in demand for larger homes. This trend underscores the potential of the real estate market, with 67 percent of buyers seeking property for end use and 33 percent for investment purposes, as per the report by FICCI and Anarock Property Consultants.
The report highlighted significant shifts in homebuyer preferences and market dynamics in India’s real estate sector.
“Investor confidence is vital for the industry’s long-term success, and SEBI’s focus on transparency and governance has been key in building this trust,” said Pramod Rao, Executive Director, SEBI. He emphasised that strong compliance and better disclosures will be crucial in attracting institutional investments.
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According to Sandip Somany, Past President of FICCI, the significant shift in consumer preferences away from ready-to-move homes towards under-construction properties indicates growing confidence in developers and the regulatory environment. This shift is significant as it reflects the changing perception of risk and the increasing trust in the timely delivery of projects.
The report found that the demand for ready homes has declined significantly. The ratio of ready homes to new launches is now 20:25, compared to 46:18 in the first half of 2020.
While the Rs 45-Rs 90 lakh budget remains the most popular, there’s a noticeable shift towards premium properties. About 28 percent of buyers now prefer homes priced between Rs 90 lakh and Rs 1.5 crore, indicating a significant change in market dynamics.
The report mentioned that while apartments remain the most preferred property type (58 percent), residential plots are gaining popularity. This diversification, especially in southern cities, is a clear sign of the evolving real estate market.
The top homebuyer demands are timely project completion (98 percent), improved construction quality (93 percent), and well-ventilated homes (72 percent). These demands reflect the growing emphasis on quality and comfort in the Indian real estate market.
However, over 53 percent of homebuyers are dissatisfied with current affordable housing options, citing issues with location, construction quality and unit sizes. These issues are significant as they point to the need for better urban planning, improved construction standards, and a more consumer-centric approach to housing development.
Anuj Puri, Chairman and Founder of Anarock Property Consultants, said that the survey provides all industry stakeholders with critical insights into the Indian property market from a consumer perspective.
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–IANS
