Mid-range homes in higher demand than affordable housing - ANAROCK-LIC survey

Mumbai (Maharashtra) [India], Mar 2 (ANI/PRNewswire): Multiple policy interventions and tax concessions for the real estate sector over the last six months have drawn approval of 68 per cent respondents polled in ANAROCK's Consumer Sentiment Survey - H2 2019 in association with LIC Housing Finance Ltd.
This segment of aspiring homebuyers now considers real estate safe and viable for investment. 72 per cent polled property seekers state that the alternative investment fund (AIF) of Rs 25K Crore and various homebuyer-favouring court rulings warrant renewed confidence to invest in real estate soon.
Conducted towards the end of H2 2019, the survey gauges the disposition of property seekers across India on various parameters such as:
* The asset class people are looking to invest in
* Personal preferences of homebuyers in terms of stage of property, builder-type, BHK-configurations, budget etc.
* The impact of government measures
At least 63 per cent of respondents across the country will invest in real estate in 2020, and 60 per cent of participants in Delhi-NCR will buy within the next six months alone - the highest among all cities.
The major factor which prompted property purchases in 2019 was attractive property prices (46 per cent), followed by 20 per cent due to boosted confidence after effective RERA implementation.
"Millennials' preferences are changing the entire property business landscape in this new decade," says Anuj Puri, Chairman - ANAROCK Property Consultants.
"Once an investment hotbed, Indian housing is now primarily end-user driven. The survey reveals that 67 per cent of the polled homebuyers will buy property for personal use, and consumer sentiment is still firmly on the side of ready-to-move-in homes - or, at best, projects nearing completion. On home selection parameters, connectivity to workplace counts as most important for 43 per cent millennial property seekers. The IT hubs of Pune and Bangalore came out on top in this trend due to escalating traffic woes," he added.
"The survey indicates that affordable and mid-segment housing priced within Rs 90 lakh are the clear choices today," said Puri.
"Mid-segment properties priced from Rs 45-90 lakh topped consumer demand with 42 per cent respondents voting in its favour, followed by 31 per cent preferring homes priced lower than Rs 45 lakh," further added Puri.
More than half the survey respondents (52 per cent) will pay extra for properties from branded developers, while 48 per cent still prefer smaller developers to save on extra costs.
In terms of configurations, 52 per cent of respondents favour two BHKs - but the share of this preference saw an annual decline of 5 per cent (from 57 per cent in the H2 2018 survey). Nearly 31 per cent prefer 3 BHKs, and 15 per cent are looking for one BHK homes.
Merely 2 per cent of respondents will buy four BHK apartments. The reduced average age of Indian buyers over the last decade seems to have increased the popularity of small-sized but well-located/connected apartments.
The H2 2019 survey also confirms that tier two and tier three cities, with relatively higher ROI, diverse customer base and wide range of properties, continue to trump the metros as investment hotspots. Pune came in second, replacing Bengaluru, while Hyderabad climbed two notches to reach the third position as the most promising city for real estate investment.
Other City-specific Trends
* Over 44 per cent of respondents in Delhi-NCR are looking to buy ready-to-move-in homes - another 25 per cent within the next six months; the highest among all cities.
* In MMR, 32 per cent are looking for a property upgrade, and almost 44 per cent will buy upgraded homes within Mumbai itself, followed by 37 per cent who are willing to shift to Navi Mumbai.
* At least 45 per cent of respondents in Bengaluru still expect high returns on their property investments.
* 42 per cent of respondents in Kolkata consider 'amenities on offer' as the top deciding factor.
* 56 per cent of respondents in Pune prefer ready homes to save on rental outgo.
* While more than half the survey participants across cities prefer branded developers, a whopping 72 per cent of buyers in Chennai still prefer small developers for the cost arbitrage.
* At a country level, two BHKs are the hot favourites but city-specific trends indicate that at least 45 per cent of Hyderabad respondents prefer three BHKs among all configurations.
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