High inflation was identified in the survey as a major source of worry for respondents who planned to buy homes.
A Consumer Sentiment Survey found that, despite the fact that demand for 3BHK homes has finally outpaced that for 2BHK homes, the increase in home loan interest rates above the 9.5% threshold is likely to have a significant effect on housing sales.
According to the survey by the industry group CII-Abarock, at least 44% of respondents preferred 3BHKs, followed by 38% who preferred 2BHKs. In the H1 2021 survey, 46% of respondents preferred 2 bedrooms, while 40% preferred 3 bedrooms. The demand for 4BHKs has also increased, going from 2% in the pre-Covid survey to 7% at this time.
The survey, conducted between January and June 2022, polled 5,500 participants responding via various digital platforms. This is even more significant considering that the survey also highlighted high inflation as a major cause of concern for respondent home buyers. 61% declared their disposable income as 'majorly impacted'.
Most survey participants (92%) predict that the economy will either stay at current levels or improve marginally over the next 12 months. In the H1 2021 survey, respondents were more bullish about the economy - at least 16% expected it to improve significantly over the next one year.
“The demand for homes priced over Rs 1.5 crore continues to grow," says Anuj Puri, Chairman-CII Real Estate Knowledge Session on Tapping the Consumer Beat and Chairman - ANAROCK Group. "Compared to the pre-Covid 2019 survey, there has been a 4% rise in the vote share for these homes - from 6% pre-Covid to 10% in H1 2022. Buoyed by the increasing demand for luxury homes, developers have also significantly increased the new supply in this category in H1 2022.
ANAROCK data revealed that 33,210 units priced at Rs 1.5 cr and above were launched across the top seven cities in H1 2022. Contrastingly, H1 2019 saw just 16,110 units launched in this segment. "The pandemic effect on home sizes continues - larger spaces in non-core urban areas remain in higher demand across the top cities. The reopening of offices and schools has changed little about this trend - as the increasing demand for the 3BHK configuration over 2BHKs vouchsafes," said Puri.
Interestingly, investors with an investment horizon of 8 to 10 years are most optimistic about the first half of 2022. According to the survey, more than half of the investors who responded believe that the housing market today offers better investment opportunities than it did a year ago.
The survey also showed that, even though ready-to-move-in homes continue to be in high demand, the gap between ready and under-construction options is getting smaller. In the H1 2022 survey, the ready-to-launch demand ratio is 30:25, compared to 46:18 in the H1 2020 survey.
(with inputs from IANS)
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