Curated By: Business Desk
Last Updated: September 21, 2023, 11:40 IST
If you’re considering purchasing a house, it’s advisable to do so promptly because waiting could result in significant financial consequences. There’s a growing demand for property investments and this demand is expected to continue rising in the near future.
The latest Anarock Consumer Sentiment Survey report offers intriguing insights, indicating that the real estate market has become the top preference for buyers. Over 60 per cent of respondents have expressed a keen interest in investing in real estate during the first half of 2023. This marks a 3 per cent increase compared to the previous survey.
The survey claims that intense competition is expected in the real estate market, with hundreds of individuals vying for the same properties. According to experts, the survey results indicate a growing trend where real estate is becoming the preferred investment choice for many young individuals.
The special thing about the survey is that the number of youth is highest among those who want to invest in property. 67 per cent of the participating youth want to buy property for their own use. 52 per cent of millennials and 35 per cent of Gen-X respondents are planning to invest in property among other assets.
In the upcoming years, it’s anticipated that numerous people will be competing for each available property. Additionally, another survey highlights that rising rental costs are motivating the youth to consider property investments as a viable option.
SK Narwar, Group Chairman of Trident Realty, states that the survey underscores real estate as the top choice among investment asset classes. He highlights that factors such as economic growth, stable home loan rates, and other favourable conditions are driving housing development in urban areas.
What’s intriguing is that buyers who are aspiring to a high-quality and comfortable lifestyle are increasingly drawn to spacious and luxurious homes situated in serene, pollution-free areas. There is also a noticeable trend of buyers opting to move away from metropolitan cities, with a particular focus on tier-2 cities like Panchkula.
Kaustubh Chandra, Manager of Marketing and Leasing at Brahma Group, observes that following the challenges posed by renting homes during the COVID-19 pandemic, individuals are now prioritising homeownership, primarily for security reasons. This shift in perspective is reflected in the housing market, as indicated by a 36 per cent increase in housing sales in the top 7 cities, according to Anarock’s survey, during the second quarter of 2023 compared to 2022. Furthermore, people are showing a preference for larger homes, such as 3 BHK residences, as opposed to 1 and 2 BHK apartments.
Navdeep Sardana, the founder of Whiteland Corporation, and Santosh Aggarwal, Executive Director and CFO of AlphaCorp, noted that real estate investment is gaining popularity due to the desire for attractive returns on investment. As per the same survey, even with the rise in property prices, 59 per cent of buyers are actively seeking mid-range and premium homes in the price range of Rs 45 lakh to Rs 1.5 crore.
This indicates a noteworthy 10 per cent increase in demand for homes within this budget category since 2020. Specifically, 35 per cent of home buyers prefer homes priced between Rs 45-90 lakh, while 24 per cent favour homes in the Rs 90 lakh to Rs 1.5 crore price range.