56% Indians expect housing prices to rise in 2022: Survey
- The survey studied the property types in high demand across cities, from preferred property sizes, hottest-selling budget ranges, and residential plots.
As much as 56% of the respondents of the CII-ANAROCK Consumer Survey expect housing prices to rise in 2022 due to inflationary trends in construction, raw materials and overall operational costs for developers.
In a quantitative analysis of the likely consumer reaction to such a price rise, the survey for the second half of 2021, found that an under-10% increase would have a moderate-to-low impact. However, an increase of over 10% would have more profound repercussions on buyer sentiment.
The survey, conducted between July and December, polled 5,210 participants across tier I, tier II, and tier III cities.
The survey also identified an increasing demand for newly launched properties in cities such as Mumbai Metropolitan Region (MMR) and Bengaluru. Though ready-to-move-in (RTM) homes are still the most preferred category for 32% of respondents, it denotes a 14% reduction for this preference since the first covid-19 wave.
Further, over 31% of buyers in MMR and Bengaluru have a positive outlook on newly launched projects, possibly indicating a return of investors in these markets.
According to the survey, another major factor influencing this change is that post-covid-19, the new housing supply is dominated by branded developers, which homebuyers perceive as safe.
Anuj Puri, chairman, ANAROCK Property Consultants, said, “Votes favouring real estate as an asset class rose by 3% in this survey, from 54% in the H1 2021 edition to 57% in H2 2021. This is especially significant since housing prices are likely to rise by 5-8% in 2022 due to increased input cost pressure and supply chain issues. Hardening interest rates, which are very likely in the second half of 2022, will be another factor driving up the overall acquisition cost for homebuyers. 56% of respondent homebuyers are aware of this.”
“Nevertheless, the new pandemic-induced desire for homeownership continues to be robust," added Puri.
The survey also studied the property types in highest demand across cities, from preferred property sizes, hottest-selling budget ranges, and residential plots.
Residential plots are the second-most preferred property type in the top seven cities, and the most preferred option in tier II and tier III cities and towns.
Further, apartments are still the preferred type of property for urban buyers. Only 17% of surveyed urban buyers would pick a plotted development over other property types, but a significant 51% of respondents from tier II & tier III cities favoured plotted developments.
In terms of budget preferences, approximately 63% preferred homes in the mid and premium segments priced between ₹45 lakh to ₹1.5 crore range. The demand for affordable housing has dropped further, from 40% votes in the survey's H2 2020 edition to 27% in H1 2021 and 25% in H2 2021.
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Business NewsCompanies56% Indians expect housing prices to rise in 2022: Survey
First Published:17 Feb 2022, 04:12 PM IST
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