According to a recent survey by Shree Katariya & Associates (SKAA), the Indian real estate sector has demonstrated remarkable resilience and growth following the outbreak of the COVID-19 pandemic. The survey, titled “Consumer Outlook on Indian Real Estate Market- Post Covid-19 Growth Analysis,” sought to understand home buyers’ evolving preferences and sentiments in the aftermath of pandemic-induced changes.
Positive Growth Trends
Despite global economic uncertainties, the Indian real estate market is expected to reach an all-time high in 2023, with over 2.82 lakh units sold. Forecasts predict that sales will exceed 3,00,000 units by 2024, with annual growth of 10-15%.
Several factors contribute to this resilience, including government initiatives, consistent economic indicators, and infrastructure projects such as the Smart City initiative. Low unemployment, inflation, and significant wage increases contribute to a positive market outlook.
Changing Consumer Preferences.
The survey reveals significant shifts in buyer preferences and budget allocations since COVID-19. The growing demand for larger homes and dedicated office spaces reflects the changing dynamics of remote work culture. Homeownership is increasingly recognized as a tangible asset in investment portfolios.
Investment Preferences
Real estate is the preferred asset class for investment in 2024, with 58% of respondents indicating a preference for property. This sentiment stems from the perceived importance of homeownership and the potential for high returns on investment. While stocks and mutual funds receive 26% of the votes, gold and fixed deposits receive only 4% and 12%, respectively.
Optimistic market outlook
The vast majority of respondents (71%), see the current period as an ideal opportunity to buy property, citing the importance of homeownership during the pandemic and the promise of higher returns on investment. Only 2% hesitate due to rising property prices and personal circumstances.
Property Price Expectations
The survey shows widespread optimism about property prices, with 87% expecting further growth. Sixty-nine percent expect a steady increase, while 18% believe they will rise, but not as quickly after COVID-19.
Ideal property types and budgets.
Residential plots are the top choice for 41% of respondents, followed by villas/row houses (27%), and flats/apartments (24%). 78% of property seekers prefer properties under Rs 50 lakhs, making affordability a top priority.
End users vs. Investors
While 53% of respondents buy property for personal use, 47% are investors, indicating a balanced market dynamic. Surprisingly, 67% of investors are salaried, showing a shift in investment behavior toward long-term property ownership.
Prefer ready-to-move properties.
More than 42% of respondents prefer ready-to-move-in properties to avoid delays and ensure immediate occupancy. However, as the pandemic fades, Millennials and Generation X are turning towards properties in their early stages, indicating a shift from end-users to investors.
Challenges ad Opportunities
Lack of funds, a limited understanding of financing options, exploring other options, and personal circumstances are all major roadblocks to deciding on a product. However, there is some hope because 37% of respondents are willing to buy if they find the right deal.
Summary
Anil Katariya, Founder & CEO of Shree Katariya & Associates, emphasizes the importance of SKAA’s survey, which provides valuable insights into the changing landscape of the Indian real estate market. Despite challenges, the sector is growing due to changing consumer preferences, positive market sentiment, and attractive investment opportunities. With this information, stakeholders can make more informed decisions about the best way to handle the market’s fluctuations.