Mumbai, Oct 18 (IANS): Real estate remained the most preferred asset class for investment among 59 per cent of Indians in the first half this year, as 57 per cent of investors said they are buying premium properties to earn rental income, driven by surging rental rates in cities, according to a report on Friday.
About 51 per cent of respondents prefer 3 BHK units, showing increased demand for larger home, as 67 per cent of buyers seek property for end use, while 33 per cent the investment purpose, said the report by FICCI and Anarock Property Consultants.
The report highlighted significant shifts in homebuyer preferences and market dynamics in India's real estate sector.
“Investor confidence is vital for the industry's long-term success, and SEBI’s focus on transparency and governance has been key in building this trust,” said Pramod Rao, Executive Director, SEBI. He emphasised that strong compliance and better disclosures will be crucial in attracting institutional investments.
According to Sandip Somany, Past President, FICCI, the significant shift in consumer preferences away from ready-to-move homes towards under-construction properties indicates growing confidence in developers and the regulatory environment.
The report found that the demand for ready homes has declined significantly. The ratio of ready homes to new launches is now 20:25, compared to 46:18 in the first half in 2020.
The Rs 45-Rs 90 lakh budget remains the most popular, but there's a shift towards premium properties. About 28 per cent now prefer homes priced between Rs 90 lakh and Rs 1.5 crore.
Apartments are still the most preferred property type (58 per cent), but residential plots are gaining popularity, especially in southern cities, the report mentioned.
Top homebuyer demands are 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, said that the survey provides all industry stakeholders with critical insights into the Indian property market from a consumer perspective.