Real Estate

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

Our Bureau Bengaluru | Updated on March 02, 2020

63% of respondents willing to invest in real estate in 2020; 72% of buyers in Chennai still prefer small developers

Mid-range homes are in higher demand than affordable housing units. Also, aspiring mig-range homebuyers consider real estate safe and viable for investment, revealed an ANAROCK-LIC survey.

The survey, ANAROCK’s Consumer Sentiment: H2 2019, conducted in association with LIC Housing Finance Ltd, gauged the views of property seekers across India on various parameters such as the asset class they are looking to invest in, personal preferences in terms of stage of property, builder-type, BHK-configurations, budget etc, and the impact of government measures.

The survey showed that at least 63 per cent of respondents across the country are willing to invest in real estate in 2020, and 60 per cent of the participants in Delhi-NCR will buy within the next six months alone — the highest among all the cities.

The major factors which prompted property purchases in 2019 were attractive prices (46 per cent), followed by increased confidence after effective RERA implementation (20 per cent).

“Millennials’ preferences are changing the entire property business landscape in this new decade,” said 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 of millennial property seekers. The IT hubs of Pune and Bengaluru came at the top in this trend due to escalating traffic woes.”

“The survey indicated that affordable and mid-segment housing, priced within ₹90 lakh, are the clear choices today,” he added. “Mid-segment properties priced from ₹45 lakh to ₹90 lakh topped consumer demand with 42 per cent of the respondents voting in their favour, followed by 31 per cent preferring homes priced less than ₹45 lakh.”

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 six months, the highest among all cities.

* In the Mumbai Metropolitan Region (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 the respondents in Bengaluru still expect high returns on their property investments.

* Around 42 per cent of the respondents in Kolkata consider ‘amenities on offer’ as the top deciding factor.

* About 56 per cent of the 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.

* Countrywide, 2 BHKs are the hot favourites but city-specific trends indicate that at least 45 per cent of Hyderabad respondents prefer 3 BHKs among all the configurations.

Published on March 02, 2020

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