National, 21 September 2023: Amid escalating housing prices and increasing home loan rates over the past year, prospective homebuyers are seeking tax incentives and flexible payment plans. They are also inclined towards additional perks offered by developers, according to a survey conducted by Housing.com, a leading PropTech company, in collaboration with real estate industry body NAREDCO.
The demand for ready-to-move-in residential properties outstrips that for under-construction projects. Housing.com and NAREDCO released their latest survey report, “Residential Realty Consumer Sentiment Outlook H2 2023 – Trends and Insights,”. The online survey engaged over a thousand potential homebuyers and was conducted between January and June 2023.
According to the survey, 48% of respondents favour real estate investment, significantly outperforming other asset classes such as stocks, fixed deposits, and gold. The data indicates that 18% prefer the stock market, 19% opt for fixed deposits, and 15% choose gold.
Mr. Rajan Bandelkar, President of NAREDCO, observed, “The recent G20 summit will positively influence the overall economy and could reshape India’s real estate through policy, investment, and sustainability considerations. The increasing consumer confidence surpasses the lows experienced during the pandemic’s peak. Though income outlooks have slightly declined, real estate continues to be the asset class of choice for 48% of respondents.”
Mr. Bandelkar further added, “Due to escalating property prices and interest rates, incentives like stamp duty and GST waivers are key influencers for home purchases in the near future. These incentives aim to make homeownership more appealing and accessible. The survey highlights the value of personalized support following property shortlisting, which is critical for closing deals and enhancing the overall homebuying experience.”
Mr. Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com & Makaan.com, commented, “Throughout history, real estate has been a cornerstone of investment. The COVID-19 pandemic has enhanced its relevance, making it the preferred choice for many. Factors such as the emphasis on homeownership, the rise of hybrid work models, and the importance of safety and security have elevated the real estate sector to new heights.”
Tax incentives, such as stamp duty and GST waivers, along with flexible payment plans, are identified as the primary motivators for homebuying in the upcoming six months, according to the report.
“In recent years, we’ve seen a noticeable uptick in housing prices, reversing nearly a decade of stagnation. Despite a 2.5% increase in home loan interest rates this year, the real estate market has shown resilience. This robustness can be attributed to both pent-up and emerging demand,” elaborated Mr. Agarwala.
The survey also indicates that ready-to-move-in homes and gated communities are the most desired property types. Additional perks like modular kitchens and custom woodwork are influential factors for buyers during their decision-making process.
Personalized assistance post-property shortlisting is deemed crucial for prospective homebuyers in closing their purchases, adds the Housing.com & NAREDCO survey.