Real Estate Maharashtra
FICCI-ANAROCK Report: Real Estate Dominates as Top Investment Choice in H1 2024
2024-10-18 · GeoSquare
Mumbai In its latest report, the Federation of Indian Chambers of Commerce and Industry (FICCI) and ANAROCK Property Consultants have unveiled significant shifts in homebuyer preferences and market dynamics in India's real estate sector for H1 2024. The report, titled 'Homebuyer Sentiment Survey - H1 2024,' provides valuable insights into the evolving landscape of the Indian real estate market.
The key findings from the report indicate that real estate remains the most preferred asset class for investment, with 59% of respondents favoring it. This preference is driven by a mix of factors, including the stability of the asset class and the potential for long-term gains. While 67% of buyers seek property for their personal use, 33% are investors looking to capitalize on the market's growth potential.
One of the most notable trends is the significant decline in demand for ready homes. The ratio of ready homes to new launches has shifted from 46 18 in H1 2020 to 20 25 in H1 2024. This shift suggests a growing confidence in developers and the regulatory environment, particularly the impact of the Real Estate (Regulation and Development) Act (RERA).
Sandip Somany, Past President of FICCI and Mentor of the FICCI Committee on Urban Development and Real Estate, and CMD of Somany Impresa Group, commented, 'The Indian real estate sector has shown remarkable evolution. The significant shift in consumer preferences away from ready-to-move homes towards under-construction properties indicates growing confidence in developers and the regulatory environment. This trend reflects a maturing market and the positive impact of regulatory measures like RERA.'
Similarly, there is a growing preference for larger homes, with 51% of respondents favoring 3BHK units. This trend highlights the increasing demand for more spacious living spaces, particularly among families. The budget range of Rs 45 to Rs 90 lakh remains the most popular, with 35% of respondents preferring this bracket. However, there is also a notable shift towards premium properties, with 28% of respondents now preferring homes priced between Rs 90 lakh and Rs 1.5 crore.
The survey, which gathered responses from 7,615 participants across 14 cities, provides a comprehensive overview of the emerging trends in the Indian residential real estate market. Pramod Rao, Executive Director of SEBI, emphasized the importance of regulatory frameworks in driving sustainable growth. He stated, 'Investor confidence is vital for the industry's long-term success, and SEBI’s focus on transparency and governance has been key in building this trust.' Rao further highlighted that strong compliance and better disclosures will be crucial in attracting institutional investments.
In summary, the FICCI-ANAROCK report paints a picture of a real estate market that is not only resilient but also evolving in response to changing consumer preferences and regulatory standards. It underscores the importance of continued regulatory support and transparency in maintaining investor confidence and fostering sustainable growth in the sector.