Housing prices are expected to climb by 56 per cent in 2022, according to the CII-ANAROCK Consumer Survey, due to inflationary tendencies in construction, raw materials, and total operating expenses for developers.
The poll for the second half of 2021 revealed that a price increase of less than 10% would have a moderate-to-low impact in a quantitative examination of the expected customer reaction. A rise of more than 10%, on the other hand, would have a more significant impact on buyer sentiment.
5,210 people in tier I, tier II, and tier III cities took part in the survey between July and December.
In areas like the Mumbai Metropolitan Region (MMR) and Bengaluru, the poll found an increase in demand for newly launched properties. Although ready-to-move-in (RTM) homes are still the most desired category for 32% of respondents, this choice has decreased by 14% from the first covid-19 wave.
Furthermore, over 31% of purchasers in MMR and Bengaluru are optimistic about freshly launched projects, potentially indicating a comeback of investors to these markets.
Another essential element affecting this shift, according to the poll, is that post-covid-19, new housing supply is dominated by branded developers, whom consumers feel as safe.
“Votes favouring real estate as an asset class grew by 3% in this survey, from 54 per cent in the H1 2021 edition to 57 per cent in the H2 2021 edition,” stated Anuj Puri, head of ANAROCK Property Consultants. This is especially important because, due to increased input cost pressure and supply chain concerns, housing costs are expected to climb by 5-8 per cent in 2022. Hardening interest rates, which are expected to rise in the second half of 2022, will be another factor driving up homebuyer costs. Sixty-six per cent of respondents are aware of the process of buying a home “f that.”
“However, the new pandemic-induced desire for homeownership remains strong,” “Puri noted.
The poll looked at each city’s most popular property categories, including preferred house sizes, hottest-selling budget ranges, and residential plots.
Residential plots are the most popular property type in the top seven cities and in tier II and tier III cities and towns.
Furthermore, for city dwellers, apartments remain the favoured type of property. Only 17 per cent of surveyed urban purchasers prefer plotted developments to other property types, but plotted projects are preferred by a considerable 51 per cent of respondents from tier II and tier III cities.
In terms of budget, over 63 per cent picked residences in the mid and luxury classes, with prices ranging from 45 lakh to 1.5 crores. The demand for affordable housing has declined even more, from 40% in the H2 2020 edition of the poll to 27% in H1 2021 and 25% in H2 2021.
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