Nearly 50pc homebuyers expect property prices to rise further in the coming months: Housing.com-NAREDCO survey

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 ●      Real estate tops as preferred asset class for investment for 47 pc respondents

●      Income outlook has reached an all-time high of 65 pc since 2020. 

New Delhi, September 28, 2022: Real estate continues to be the preferred asset class for investment and nearly 50 per cent of prospective customers are expecting prices to rise in coming months due to strong demand during festive season, according to Housing.com and NAREDCO survey. 

Housing.com, India’s leading full-stack prop-tech platform, and NAREDCO (National Real Estate Development Council) have conducted a joint survey with over 1000 participants to gauge consumer sentiment and released the ‘Residential Realty Consumer Sentiment Survey H2 2022’ report. 

As per the survey findings, 47 per cent of respondents prefer to invest in real estate, the highest compared to other asset classes such as stocks, gold, and fixed deposit. 

The data shows that 21 percent of respondents prefer to invest in the stock market, 16 percent in fixed deposits and 15 percent in gold.

Housing prices recorded a 7 percent YoY increase in April-June quarter of 2022. 

The survey findings also suggest that 48 percent of respondents anticipate prices to rise further in the coming months.

“India’s residential market has seen a sharp revival in demand after the second wave of the COVID-19 pandemic. The rising cost of borrowing, increase in input costs and strong demand has resulted in a rise in housing prices.,” said, Mr. Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com 

“We expect housing demand to remain strong in the upcoming quarter on the back of strong consumer sentiment and the seasonal uplift in demand during the festive season,” he observed. 

“According to our survey, homebuyers expect property prices to rise further in the coming months given the current macro situation, which will further drive up demand in the short term,” Mr. Agarwala said. 

The survey observed that homebuyers are cautious yet optimistic about the economic scenario for the coming months; 73 percent of respondents feel that the economy would continue to stay on its growth trajectory in the coming months. While ongoing global uncertainties have moderated the outlook, the sentiment regarding the economy still remains well above the dip recorded during 2020. 

Commenting on the survey findings, Mr. Rajan Bandelkar, President, NAREDCO said: “Real Estate Sector in India is witnessing green shoots of recovery, thanks to various policy interventions implemented by Government, aiding the Real Estate sector to grow and ensuring speedy recovery of the industry Post-Covid. 

The residential markets across India remain upbeat despite growing concerns about rising interest rates. The stronger sales momentum anticipated in the coming months and quarters stems from the fact that property remains the best asset class in comparison to buying gold, mutual funds or making a fixed deposit. Our latest Consumer Sentiment Outlook (Jul-Dec 2022) suggests that real estate has remained a favourite asset class among potential buyers.” 

“Demand for housing will continue to be high. Consumers’ ever-increasing desire to own a home and their goal for financial security and stability has been a significant driving force for housing sales over the past two years. This festive season will likely bring more deals favouring first-time homebuyers willing to enter the market. With end users remaining confident about the economy in the coming months, the real estate sector will likely register a remarkable quarter, setting a precedent for the coming year.” added Mr. Bandelkar. 

“Despite the hike in property prices and interest rates, homebuyer sentiment continues to remain in the positive zone for the remainder of 2022, according to our Consumer Sentiment Outlook survey. Potential homebuyers (65% of respondents) are positive regards their income stability for the coming six months; a sentiment highest since the lows of the pandemic period of 2020”, said Ankita Sood, Head of Research at Housing.com, PropTiger.com & Makaan.com 

“As for the repo rate, while the hike was imminent, it remains below the pre-pandemic levels of 5-6 percent. The confidence in future earnings coupled with the pandemic-induced importance of homeownership will continue to drive residential sales not only in the top metros but also in the Tier-II cities. We see the impending festive season further bolstering consumer sentiment with homebuyers intensifying their search activity, which will form a strong base for property demand in the ensuing quarters”, added Ms. Sood.  

According to the survey, homebuyer sentiment has received a significant boost on the back of the increased importance of home ownership, the need for extra space amidst hybrid work policies adopted by many companies and the exigency for safety and security. Against this backdrop, the survey observed that 58 percent of homebuyers who are primarily end-users are looking for ready-to-move-in (RTMI) property. 

According to the Housing.com-NAREDCO report, the income outlook continues to strengthen and has reached an all-time high of 65 percent since 2020. Strong services activity, an optimistic hiring scenario and a stable unemployment rate have all acted as sentiment boosters, bolstering consumer confidence in their future earnings.   

Digital sales and marketing platforms have become the mainstay not only to search for a home, but also to close deals online or in just one or two site visits. The survey shows that 34 percent of homebuyers have suggested that they are willing to buy a home completely online or just after one site visit. Such platforms play a vital role in simplifying home buying, selling, renting and the access to allied services. Given the findings of the report, it’s likely that the real estate market will witness steady growth in the coming months. 

Link to report: https://housing.com/research-reports#allreports

Corporate Comm India (CCI Newswire)