Real Estate Maharashtra
Real Estate Dominates Indian Investments: Bigger Homes in High Demand Amid Rental Surge
2024-10-18 · GeoSquare
Real estate continues to be the most preferred asset class for investment among 59 per cent of Indians in the first half of this year, according to a recent report. The report, conducted by FICCI and Anarock Property Consultants, highlights a significant shift in the real estate market, with 57 per cent of investors now focusing on premium properties to earn rental income, driven by surging rental rates in major cities.
About 51 per cent of the respondents prefer 3 BHK units, indicating an increased demand for larger homes. This trend is further supported by the fact that 67 per cent of buyers are looking for properties for personal use, while 33 per cent are investing for financial gains. The report underscores the changing dynamics in the real estate sector, reflecting both consumer preferences and market conditions.
Pramod Rao, Executive Director of SEBI, emphasized the importance of investor confidence in the industry’s long-term success. He noted that SEBI’s focus on transparency and governance has been crucial in building this trust. Strong compliance and better disclosures will be essential in attracting institutional investments, he added.
Sandip Somany, Past President of FICCI, pointed out a significant shift in consumer preferences from ready-to-move homes to under-construction properties. This change indicates growing confidence in developers and the regulatory environment. The report found that the demand for ready homes has declined significantly, with the ratio of ready homes to new launches now at 20 25, compared to 46 18 in the first half of 2020.
The budget range of Rs 45 lakh to Rs 90 lakh remains the most popular, but there is a noticeable shift towards premium properties. About 28 per cent of respondents now prefer homes priced between Rs 90 lakh and Rs 1.5 crore. Despite the prevalence of apartments (58 per cent), residential plots are gaining popularity, especially in southern cities.
Top homebuyer demands include timely project completion (98 per cent), improved construction quality (93 per cent), and well-ventilated homes (72 per cent). However, over 53 per cent of homebuyers are dissatisfied with current affordable housing options, citing issues with location, construction quality, and unit sizes.
Anuj Puri, Chairman and Founder of Anarock Property Consultants, stated that the survey provides valuable insights into the Indian property market from a consumer perspective, helping industry stakeholders make informed decisions.
FICCI, the Federation of Indian Chambers of Commerce and Industry, is a leading business organization in India, dedicated to promoting economic growth and fostering a conducive environment for businesses. Anarock Property Consultants is a renowned real estate advisory firm that provides comprehensive solutions for various real estate needs.