The Indian residential sector has been on a roll since the pandemic with both housing sales and new launches reaching new highs in the last one year. The residential sector, in fact, charted a new growth path since the pandemic with consumer preferences altering significantly over the year. Interestingly, the agile recovery in the housing sector re-affirmed that there is indeed an underlying demand for housing in the country.
Year 2022 began with various global and local headwinds including rising inflation and home loan interest rate hike, among others. Despite these hurdles, the housing sector remained buoyant with both housing sales and new launches breaching the previous highs. As per ANAROCK Research, nearly 1,84,500 units were sold in H1 2022 across the top 7 cities as compared to the previous high of 1,70,040 units in H1 2015. Notably, life also returned to near normalcy in 2022 with offices and schools reopening across the country.
And in this new-normal scenario, it was pertinent to gauge the sentiments of the prospective homebuyers. Whether or not high inflation affected their disposable income or did the interest rate hikes impact their home-buying decisions. Do homebuyers continue to seek properties in the peripheries or now prefer to live in city-centres near their offices?
The survey findings revealed some interesting facts. High inflation is indeed a ‘major cause of concern’ for at least 61% respondents. Simultaneously, the present increased home loan rates will have only moderate or low impact on the home seekers but if it breaches the 9.5% mark, there will be a ‘high impact’ on the home-buying decisions of at least 93% respondents.
Interestingly, luxury segment priced >INR 1.5 crore continues to gain traction with the home seekers while demand for new properties (new launches) is also seen to be rising. Further, even while work from-office and physical school has resumed, the peripheral areas continue to attract buyers. At least 42% respondents still prefer the peripheral or the suburban areas largely because they seek bigger homes and a better lifestyle – at more affordable prices.
(Excerpted from the foreword by Anuj Puri, Chairman, CII Real Estate Knowledge Session; Founder & Chairman, Anarock Group)
