Real Estate Dominates Indian Investments: Bigger Homes in High Demand Amid Rental Surge

Real estate remains the top investment choice for 59% of Indians, with a growing preference for larger, premium properties driven by rising rental rates.

Real EstateInvestmentsIndian MarketRental IncomePremium PropertiesReal Estate MaharashtraOct 18, 2024

Real Estate Dominates Indian Investments: Bigger Homes in High Demand Amid Rental Surge
Real Estate Maharashtra: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.

Frequently Asked Questions

What percentage of Indians prefer real estate as an investment?

59 per cent of Indians prefer real estate as an investment in the first half of this year.

Why are investors buying premium properties?

Investors are buying premium properties to earn rental income, driven by surging rental rates in major cities.

What type of homes are in high demand?

3 BHK units are in high demand, with 51 per cent of respondents preferring larger homes.

What are the top demands of homebuyers?

The top demands of homebuyers include timely project completion (98 per cent), improved construction quality (93 per cent), and well-ventilated homes (72 per cent).

What is the most popular budget range for homebuyers?

The most popular budget range is Rs 45 lakh to Rs 90 lakh, but there is a shift towards premium properties priced between Rs 90 lakh and Rs 1.5 crore.

Related News Articles

Union Budget 2024: Real Estate Industry Leaders Share Expectations
Real Estate

Union Budget 2024: Real Estate Industry Leaders Share Expectations

Real estate heavyweights discuss their expectations from the Union Budget 2024-25, hoping for tax relief, streamlined processes, and measures to address liquidity challenges.

July 16, 2024
Read Article
Land and Leisure Homes Expo 2024: Your Gateway to Dream Second Homes
Real Estate Pune

Land and Leisure Homes Expo 2024: Your Gateway to Dream Second Homes

The expo, organized by TIIPS and METKONNECT, will feature prominent real estate developers, including Nirvana Realty and Mera Villa Infra, showcasing properties in key destinations like Pune, Lonavala, and Karjat.

October 7, 2024
Read Article
Man Infraconstruction Eyes Strategic Consolidation in US Real Estate Market
Real Estate Pune

Man Infraconstruction Eyes Strategic Consolidation in US Real Estate Market

Man Infraconstruction, a leading real estate company with a presence in Miami, Florida, is planning significant consolidations in the US market to bolster its portfolio and strengthen its market position.

November 6, 2024
Read Article
Indian Businessman Shreegopal Kabra Acquires Two Luxury Sea-Facing Apartments for Rs 198 Crore in Mumbai
Real Estate Mumbai

Indian Businessman Shreegopal Kabra Acquires Two Luxury Sea-Facing Apartments for Rs 198 Crore in Mumbai

In a significant move in Mumbai's real estate market, Shreegopal Kabra, the chairman of RR Kabel Ltd, and his family have spent a whopping Rs 198 crore on two premium sea-facing apartments. This acquisition highlights the ongoing interest of high-net-wort

November 11, 2024
Read Article
Maharashtra Assembly Election Results 2024: Complete List of Winners and Constituencies
Real Estate Mumbai

Maharashtra Assembly Election Results 2024: Complete List of Winners and Constituencies

Get the latest updates on the Maharashtra Assembly Election results 2024, including a full list of Winners and their constituencies. Stay informed about the political landscape in Mumbai, Pune, Nagpur, and other key regions.

November 23, 2024
Read Article
CCI Approves Acquisition of 72.89% Voting Shares in Prataap Snacks Limited
Real Estate

CCI Approves Acquisition of 72.89% Voting Shares in Prataap Snacks Limited

The Competition Commission of India (CCI) has approved the acquisition of 72.89% voting share capital in Prataap Snacks Limited by Authum Investment & Infrastructure Limited and Ms. Mahi Madhusudan Kela. This strategic move aims to strengthen the snack fo

January 1, 2025
Read Article