The consumer sentiment for bigger homes continues unabated. Out of a total of 4,662 survey participants, 42% currently prefer 3BHKs, finds the CII-ANAROCK report ‘The Housing Market Boom’ released at the 5th Edition of the CII Real Estate Confluence 2023 in Mumbai, where ANAROCK was Knowledge Partner, today. 40% of the surveyed participants prefer 2BHKs, 12% will opt for 1BHK, and 6% seeks homes exceeding the 3BHK configuration.

The two realty hotspots NCR and MMR have seen particularly strong momentum in the sale of high-ticket bigger homes over the last few quarters, finds the report. Over 45% property seekers in NCR are looking to buy 3BHK homes in the near future. In the expensive MMR, 2BHKs appear to dominate the preference charts of 43% of respondents in this region, but over 32% buyers there are looking to buy 3BHKs.

The report highlights the overall sentiments of buyers amid current headwinds including another possible rate hike by the RBI in the near future. If that happens, housing sales momentum in the top 7 cities may well be in for a bumpy ride as at least 96% prospective buyers state that higher home loan rates will affect their homebuying decisions in the future.

For over 80% property seekers, prices remain an important factor as apart from home loan rates, the basic cost of property has been on the rise in the last one year.

ANAROCK data reveals that average property prices across the top 7 cities increased in the range of 6-9% in Q1 2023 when compared to Q1 2022, mainly due to an increase in the prices of construction raw materials and overall rise in demand. MMR and Bangalore recorded the highest 9% annual jump.

Anuj Puri, Chairman – CII Real Estate Confluence 2023 & Chairman – ANAROCK Group, says, “Rate hikes are just part of the overall demand scenario. Recent layoffs by both large and small corporates are likely to have at least some  impact on the demand in the upcoming two quarters, and dent growth in the housing market. Many homebuyers impacted by layoffs may defer homebuying decisions until their employment situation stabilizes. Nevertheless, buying homes remains the top priority for everyone.”

Currently, inflation is high and the state of the global economy directly or indirectly impacts housing demand in India. However, whatever demand gets deferred will be a temporary dynamic.  “There are high chances that by FY25, the current turbulence will have passed and the housing market will bounce back,” says Puri. “Deferred demand is just that – it is put on hold, not destroyed.”

The report further finds that millennials continue to drive housing demand. Of total participants that chose real estate as an asset class for investment, at least 52% were millennials who are mainly looking to buy homes for self-use. End-users still dominate Indian housing market, with end-user vs investor ratio at 71:29. Of the total surveyed end-users, over 77% are millennials.

At least 36% respondents are zeroing in on homes that will be ready for possession within a year, and 58% want to buy properties priced within INR 40 lakh to INR 1.5 Cr.

Apart from price points and basic amenities in a project, the surveyed buyers are now focused on three primary aspects – timely project completion assurance, the availability of a study room, and adequate ventilation in the property. Over 90% of the surveyed homebuyers will not compromise on timely project completion, 62% insist on well-ventilated homes, and another 55% respondents consider a study room indispensable. It is evident that the Covid-19 pandemic has left a lasting impact on homebuyer preferences.

Also Read: Real Estate Platform Deals Worth $4.5 Bn Announced in FY23

The post 45% Property Seekers in NCR and 32% in MMR Prefer to Buy 3BHKs appeared first on Square Feat India.

As per the CII-ANAROCK Consumer Sentiment Survey – H1 2022, demand for 3BHKs has outstripped that of 2BHKs for the first time. At least 44% of respondents preferred 3BHKs, followed by 38% favouring 2BHKs. In the survey’s H1 2021 edition, 46% preferred 2BHKs, and 40% voted for 3BHKs. The demand share for 4BHKs has also risen – from 2% in the pre-Covid survey to 7% now.  The survey, conducted between January and June 2022, polled 5,500 participants responding via various digital platforms.

This is even more significant considering that the survey also highlights high inflation as a major cause of concern for respondent homebuyers. 61% declared their disposable incomes as ‘majorly impacted’. Most survey participants (92%) predict that the economy will either stay at current levels or marginally improve over the next 12 months. In the H1 2021 survey, respondents were more bullish about the economy – at least 16% expected it to improve significantly over the next one year.

“The demand for homes priced >INR 1.5 Cr continues to grow,” says Anuj Puri, Chairman – CII Real Estate Knowledge Session on Tapping the Consumer Beat and Chairman – ANAROCK Group. “Compared to the pre-Covid 2019 survey, there has been a 4% rise in the vote share for thesehomes – from 6% pre-Covid to 10% in H1 2022. Buoyed by the increasing demand for luxury homes, developers have also significantly increased the newsupply in this category in H1 2022. ANAROCK data reveals that 33,210 units priced INR 1.5 Cr and above were launched across the top 7 cities in H1 2022. Contrastingly, H1 2019 saw just 16,110 units launched in this segment.”

“The pandemic effect on home sizes continues – larger spaces in non-core urban areas remain in higher demand across the top cities. The reopening of offices and schools has changed little about this trend – as the increasing demand for the 3BHK configuration over 2BHKs vouchsafes,” says Puri.

Interestingly, investors with an 8–10-year investment horizon have the most positive outlook in H1 2022. More than half of respondent investors feel that the current housing market is a better investment proposition than it was 12 months ago. The survey also highlights that while ready-to-move homes still draw top buyer demand, the demand gap between ready and under-construction options continues to narrow. The ready vs. new launch demand ratio is 30:25 in the H1 2022 survey, while it was 46:18 in the H1 2020 edition.

Other Survey Highlights

• Preference for real estate over other asset classes is growing. In the H1 2022 survey, 59% of respondents prefer to invest in real estate, against 54% last year
• Buying homes with capital gains from other investment asset classes like the stock market and mutual funds is the top priority for millennials and Generation X – with 56% and 38% respectively voting in its favour
• The residential market remains dominated by end-users, with 69% of respondents looking to buy homes for self-use and 31% for investment
• Newly-launched properties gaining traction – 25% of respondents now prefer new projects as against 18% during the 1st Covid wave survey (H1 2020)

Also Read: Survey of dilapidated buildings hampered due to Covid

The post 3BHKs in Highest Demand  appeared first on Square Feat India.