Multiple policy interventions and tax concessions for the real estate sector over the last six months have drawn approval of 68% respondents polled in ANAROCK's Consumer Sentiment Survey – H2 2019 in association with LIC Housing Finance Ltd.
This segment of aspiring homebuyers now considers real estate safe and viable for investment. 72% polled property seekers state that the alternative investment fund (AIF) of INR 25K Crore and various homebuyer-favouring court rulings warrant renewed confidence to invest in real estate soon.
Conducted towards the end of H2 2019, the survey gauges the disposition of property seekers across India on various parameters such as:
At least 63% of respondents across the country will invest in real estate in 2020, and 60% of participants in Delhi-NCR will buy within the next six months alone – the highest among all cities.
The major factor which prompted property purchases in 2019 was attractive property prices (46%), followed by 20% due to boosted confidence after effective RERA implementation.
"Millennials' preferences are changing the entire property business landscape in this new decade," says Anuj Puri, Chairman - ANAROCK Property Consultants. "Once an investment hotbed, Indian housing is now primarily end-user driven. The survey reveals that 67% of the polled homebuyers will buy property for personal use, and consumer sentiment is still firmly on the side of ready-to-move-in homes - or, at best, projects nearing completion. On home selection parameters, connectivity to workplace counts as most important for 43% millennial property seekers. The IT hubs of Pune and Bangalore came out on top in this trend due to escalating traffic woes."
"The survey indicates that affordable and mid-segment housing priced within INR 90 lakh are the clear choices today," says Anuj Puri. "Mid-segment properties priced from INR 45-90 lakh topped consumer demand with 42% respondents voting in its favour, followed by 31% preferring homes priced < INR 45 lakh."
More than half the survey respondents (52%) will pay extra for properties from branded developers, while 48% still prefer smaller developers to save on extra costs.
In terms of configurations, 52% of respondents favour 2 BHKs - but the share of this preference saw an annual decline of 5% (from 57% in the H2 2018 survey). Nearly 31% prefer 3 BHKs, and 15% are looking for 1 BHK homes. Merely 2% of respondents will buy 4 BHK apartments. The reduced average age of Indian buyers over the last decade seems to have increased the popularity of small-sized but well-located/connected apartments.
The H2 2019 survey also confirms that tier 2 and tier 3 cities, with relatively higher ROI, diverse customer base and wide range of properties, continue to trump the metros as investment hotspots. Pune came in 2nd, replacing Bengaluru, while Hyderabad climbed two notches to reach the 3rd position as the most promising city for real estate investment.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.