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38% of respondents still prefer 2BHKs; in the previous survey (H1 2021), 46% preferred 2BHKs while 40% voted for 3BHKs -
Demand share for 4BHKs has also risen – from 2% pre-COVID to 7% now -
High inflation has majorly impacted disposable incomes of at least 61% of respondents -
Luxury properties priced >1.5 Cr gaining traction with 4% rise in vote share – from 6% in pre-COVID 2019 survey to 10% in H1 2022 -
High impact on housing sales expected if home loan interest rates breach the 9.5% mark -
Despite offices & schools resuming, 42% of respondents still prefer homes in the city peripheries
As per the CII-ANAROCK Consumer Sentiment Survey – H1 2022, demand for 3BHKs has outstripped that of 2BHKs for the first time. At least 44% of respondents preferred 3BHKs, followed by 38% favouring 2BHKs. In the survey’s H1 2021 edition, 46% preferred 2BHKs, and 40% voted for 3BHKs. The demand share for 4BHKs has also risen – from 2% in the pre-COVID survey to 7% now. The survey, conducted between January and June 2022, polled 5,500 participants responding via various digital platforms.
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Anuj Puri, Chairman – CII Real Estate Knowledge Session on Tapping the Consumer Beat and Chairman – ANAROCK Group
This is even more significant considering that the survey also highlights high inflation as a major cause of concern for respondent homebuyers. 61% declared their disposable incomes as ‘majorly impacted’. Most survey participants (92%) predict that the economy will either stay at current levels or marginally improve 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 >INR 1.5 Cr continues to grow,” says Anuj Puri, Chairman – CII Real Estate Knowledge Session on Tapping the Consumer Beat and Chairman – ANAROCK Group
“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,” says Puri.
Interestingly, investors with an 8–10-year investment horizon have the most positive outlook in H1 2022. More than half of respondent investors feel that the current housing market is a better investment proposition than it was 12 months ago. The survey also highlights that while ready-to-move homes still draw top buyer demand, the demand gap between ready and under-construction options continues to narrow. The ready vs. new launch demand ratio is 30:25 in the H1 2022 survey, while it was 46:18 in the H1 2020 edition.
Other Survey Highlights
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Preference for real estate over other asset classes is growing. In the H1 2022 survey, 59% of respondents prefer to invest in real estate, against 54% last year -
Buying homes with capital gains from other investment asset classes like the stock market and mutual funds is the top priority for millennials and Generation X – with 56% and 38% respectively voting in its favour -
The residential market remains dominated by end-users, with 69% of respondents looking to buy homes for self-use and 31% for investment -
Newly-launched properties gaining traction – 25% of respondents now prefer new projects as against 18% during the 1st Covid wave survey (H1 2020)
Download the CII-ANAROCK Consumer Sentiment Survey – H1 2022.