The ‘bigger is better’ mantra continues to drive the Indian housing market. The FICCI-ANAROCK Consumer Sentiment Survey (H2 2023), unveiled at the FICCI Real Estate Summit in Delhi today, finds that the highest homebuyer demand is now for 3BHKs, with at least 50% respondents picking this size. 38% respondent favour 2BHKs. The demand for 3BHKs stood at 42% in in the H2 2022 edition of the survey.

Despite increasing property prices, the demand for bigger apartments continues unabated and is, in fact, increasing. 3BHKs are particularly in vogue in Bengaluru, Chennai, Hyderabad, and Delhi-NCR. In hyper-pricey MMR, 44% of respondents preferred 2BHKs. The demand for 1BHK units is being primarily evident in the western markets of MMR (17%) and Pune (10%).

Aligned to the growing preference for bigger apartments, the demand for luxury homes priced >INR 1.5 Cr has also gained more traction. At least 20% of the H2 2023 survey respondents prefer to buy homes in this price bracket, against 12% in H2 2021. The INR 45-90 lakhs budget range remains the most popular, with over 33% prospective homebuyers favouring it.

Affordable housing demand has shrunk further, to 21% in H2 2023 from 25% in H2 2021, and 40% in H2 2020.

Anuj Puri, Chairman – ANAROCK Group, says, “The supply of bigger homes is seamlessly following the demand for them. ANAROCK data indicates that average flat sizes in the top 7 cities grew by 11% annually last year – from 1,175 sq. ft. in 2022 to 1,300 sq. ft. in 2023. The survey also finds that for the first time, the demand for ready-to-move homes is lower than new launches. The survey highlights that in in H2 2023, the ratio of ready homes to new launches is 23:24 against 32:24 in H2 2021. Interestingly, it stood at 46:18 back in H1 2020.”

The survey further highlights the growing inclination of homebuyers towards suburban areas and city centres, in line with the return to office (RTO) dynamic being witnessed post the COVID-19 pandemic. 30% of respondents in the current survey (H2 2023) chose suburban areas as their first choice for buying a home, against the 25% who preferred suburban areas in H2 2021.

The current survey also finds that:

• No less than 75% property seekers now want balconies. The desire for more open spaces within homes is a significant change from earlier years, when the focus was more on dedicating almost every square inch for indoor utilization.+ 
• 74% of the surveyed homebuyers insist on improved construction quality.

Other Key Survey Highlights

• 58% millennials & 39% Gen-X respondents intend to use their gains from other investments to purchase homes
• While real estate remains the most preferred investment asset class for over 57% respondents, there is also a growing sentiment towards Fixed Deposits (FDs) in the wake of rising interest rates
• More investors are now backing residential real estate – in H2 2023, about 36% prospective buyers will purchase properties as investment
• Over 73% survey respondents state that their home buying decision will not be impacted if home loan rates stay below 8.5%
• Inflation is not impacting disposable income as much as it did in the previous year’s survey – in H2 2023, 55% participants felt a notable impact of inflation, down from 61% in the H2 2022 edition

Also Read: Mumbai Coastal Road: A catalyst for real estate growth in Western Suburbs

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By Varun Singh

As of 24th January 2022, Maharashtra reported 92,055 property registrations in the first month of 2022. Though this is 33% lower compared to the previous month, a few working days are still left for the month to end.

Anuj Puri, Chairman – ANAROCK Group said, “The revenue from property registrations has also declined by 46% to IN 1,274 Cr during the same period. While property registrations were 40% lower compared to the same period last year, the revenue from property registrations increased by 8%.”

“The average revenue per registration has increased by 78% in January 2022 compared to the same period last year. This clearly indicates that larger ticket sizes are witnessing traction in January 2022.

Mumbai is the most active real estate market of Maharashtra. Mumbai alone contributed 6% to the property registrations across the state and 26% to the overall revenue. Around 5,918 properties were registered till 24th January 2022; 39% less compared to the previous month.

Revenue has also decreased by 56% to INR 334 Cr in the same period. The sudden drop in registrations and revenue can be attributed to: The 3rd wave of COVID-19 Anticipation of favourable announcements in Union Budget 2022, and Anticipation of the auspicious Gudi Padwa festival, which starts in the next couple of months.

However, property registrations and revenue are higher by 10% and 25% respectively compared to May 2021 (post the 2nd wave).

Compared to last year, property registrations decreased significantly by 43% in January 2022. This is attributed to the temporary reduction in stamp duty in January 2021.

On the other hand, revenue from property registrations increased by 10% owing to larger ticket size transactions.

The average revenue per registration increased by 93% from INR 2.9 Lakh in January 2021 to INR 5.7 lakh in January 2022.

Property registrations are likely to increase in the future on the back of upcoming festive season and Union Budget 2022. The real estate market in the state is expected to rebound quick as the Omicron variant is less severe and complete lockdown is not imposed across the state.

Also Read: CIDCO lottery for 5,730 homes announced

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