FICCI-ANAROCK Report: Real Estate Stays Top Investment Choice in India
The latest 'Homebuyer Sentiment Survey - H1 2024' by FICCI and ANAROCK Property Consultants reveals significant changes in homebuyer preferences and market dynamics in India's real estate sector. Real estate remains the top choice for investment, with a g
Real EstateFicciAnarockHomebuyer PreferencesInvestment TrendsReal Estate NewsOct 18, 2024
Interestingly, the demand for ready-to-move homes has seen a significant decline. The ratio of ready homes to new launches has shifted from 46 18 in H1 2020 to 20 25 in the latest survey. This trend reflects a growing confidence in developers and a favorable regulatory environment, particularly due to the implementation of RERA (Real Estate Regulatory Authority).
The survey also revealed a preference for larger homes, with 51% of respondents opting for 3BHK units. The budget range of Rs 45 to Rs 90 lakh remains the most popular choice (35% preference). However, there is a noticeable shift towards premium properties, with 28% of respondents now preferring homes priced between Rs 90 lakh and Rs 1.5 crore.
Sandip Somany, Past President of FICCI, 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.'
The comprehensive survey gathered responses from 7,615 participants across 14 cities, shedding light on the significant shifts in homebuyer preferences and 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 in the real estate sector. 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. Strong compliance and better disclosures will be crucial in attracting institutional investments.'
Frequently Asked Questions
What is the main focus of the FICCI-ANAROCK report?
The main focus of the FICCI-ANAROCK report is to highlight significant shifts in homebuyer preferences and investment trends in India's real estate sector for H1 2024.
What percentage of respondents prefer real estate as an investment class?
59% of the respondents favor real estate as their preferred investment class.
What is the current ratio of ready homes to new launches in the real estate market?
The current ratio of ready homes to new launches is 20:25, compared to 46:18 in H1 2020.
Which type of home units are most preferred by buyers?
51% of respondents prefer 3BHK units, indicating a growing demand for larger homes.
What is the impact of regulatory measures like RERA on the real estate market?
Regulatory measures like RERA have played a significant role in building trust and confidence among homebuyers, leading to a maturing market and a shift towards under-construction properties.
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