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Almost 50% of buyers prefer real estate to stocks, gold and fixed deposits: Housing.com-NAREDCO survey

The survey found that housing prices recorded a seven per cent year on year increase in April-June quarter of 2022 and 48 per cent respondents anticipate prices to rise further in the coming months.

September 26, 2022 / 02:02 PM IST
Representative image

Representative image

Real estate continues to be the preferred asset class for investment and nearly 50 per cent of prospective customers expect prices to rise in the coming months due to strong demand during festive season, according to a survey by Housing.com and National Real Estate Development Council (NAREDCO).

The survey found that housing prices recorded a seven per cent year on year increase in April-June quarter of 2022 and 48 per cent of respondents anticipate prices to rise further in the coming months.

As per the findings, 47 per cent of respondents prefer to invest in real estate, the highest compared to other asset classes such as stocks, gold, and fixed deposits. The data shows that 21 per cent of respondents prefer the stock, 16 per cent fixed deposits and 15 per cent gold.

The survey of over 1,000 participants titled ‘Residential Realty Consumer Sentiment Survey H2 2022' observed that 58 per cent of homebuyers who are primarily end-users are looking for ready-to-move-in property. The income outlook continues to strengthen and has reached an all-time high of 65 per cent since 2020. Strong services activity, an optimistic hiring scenario and a stable unemployment rate have all acted as sentiment boosters, bolstering consumer confidence.

Digital sales and marketing platforms have become the mainstay not only to search for a home, but also to close deals online or in just one or two site visits. The survey shows that 34 per cent of homebuyers have suggested that they are willing to buy a home completely online or just after one site visit.

"India's residential market has seen a sharp revival in demand after the second wave of the COVID-19 pandemic. The rising cost of borrowing, increase in input costs and strong demand has resulted in a rise in housing prices," said Dhruv Agarwala, group CEO of Housing.com, PropTiger.com & Makaan.com

"We expect housing demand to remain strong in the upcoming quarter on the back of strong consumer sentiment and the seasonal uplift in demand during the festive season,” he said.

"According to our survey, homebuyers expect property prices to rise further in the coming months given the current macro situation, which will further drive up demand in the short term,” Agarwala said.

The survey observed that homebuyers are cautious yet optimistic about the economic scenario for the coming months; 73 per cent of respondents feel that the economy would continue to stay on its growth trajectory in the coming months. While ongoing global uncertainties have moderated the outlook, the sentiment regarding the economy still remains well above the dip recorded during 2020.

“Residential markets across India remain upbeat despite growing concerns about rising interest rates. The stronger sales momentum anticipated in the coming months and quarters stems from the fact that property remains the best asset class in comparison to gold, mutual funds or a fixed deposit. Our latest Consumer Sentiment Outlook (July-December 2022) suggests that real estate has remained a favourite asset class among potential buyers,” said Rajan Bandelkar, president of NAREDCO.

“Despite the hike in property prices and interest rates, homebuyer sentiment continues to remain in the positive zone for the remainder of 2022, according to our Consumer Sentiment Outlook survey. Potential homebuyers (65 percent of respondents) are positive with regard to their income stability for the coming six months; a sentiment highest since the lows of the pandemic period of 2020,” said Ankita Sood, head of research at Housing.com, PropTiger.com, and Makaan.com

“As for the repo rate, while the hike was imminent, it remains below the pre-pandemic levels of five to six per cent. The confidence in future earnings coupled with the pandemic-induced importance of homeownership will continue to drive residential sales not only in the top metros but also in tier two cities. We see the impending festive season further bolstering consumer sentiment with homebuyers intensifying their search activity, which will form a strong base for property demand in the ensuing quarters,” she said.

 
Moneycontrol News
first published: Sep 26, 2022 02:02 pm