Despite challenges like higher home loan rates and property prices, the desire for homeownership in India remains strong, especially for luxury properties above Rs 1 crore. Demand for properties exceeding Rs 2.5 crore has also surged, reflecting a steadfast commitment to ownership. An interesting trend is the increased interest in owning land, driven by security and potential capital appreciation. NoBroker's report highlights a shift in sentiment, with 86% considering it a good time for property investment, and 77% intending to buy in 2023. Gated communities are favoured, while plots gain popularity for price appreciation potential. Budget constraints and amenities drive purchase decisions.
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In a surprising trend, the desire for homeownership in India has not wavered despite the challenges posed by increased home loan rates and property prices. The spotlight is now on luxury properties, with homes valued at over Rs 1 crore witnessing a substantial surge in demand. Properties exceeding Rs 2.5 crore have experienced even more remarkable growth, reflecting an unwavering commitment to homeownership.
Interestingly, the year gone by saw a notable shift in interest towards owning land. Indians are increasingly drawn to the security and potential for capital appreciation that land ownership offers. This led to a surge of over 100 per cent in the launch of plot projects within metropolitan cities, capturing the attention of both individual buyers and investors.
NoBroker's latest report highlights a remarkable sentiment shift, with 86 percent of survey participants believing the present to be an opportune time for property investment. A whopping 77 per cent expressed intentions to make a property purchase in 2023. This shift is largely attributed to escalating rental prices.
Gated communities emerged as the favoured living choice for urban returnees, ensuring swift occupancy and driving rent inflation. In contrast, stand-alone buildings experienced delayed occupancy due to the heightened demand for gated living.
The report underlines the top motivations for property purchases, including ownership of a physical asset (38 per cent), security (30 per cent), and affordability (29 per cent). The pandemic reinforced the age-old Indian value of homeownership.
While preference for ready-to-move-in properties remained dominant, there is a growing interest in plots due to their potential for higher price appreciation. Security and modern amenities fuelled the demand for society flats, while independent houses remained popular in specific cities.
Survey participants prioritized budget constraints (68 per cent) when making purchase decisions, followed by civic amenities (40 per cent) and ease of daily commute (36 per cent). The majority aimed for properties under Rs 1 crore, with 2BHK units being the most sought-after.
Construction quality, RERA compliance, and builder credibility emerged as critical factors influencing property decisions. The report indicated that 82 per cent of buyers were motivated by end-use, while 18 per cent sought investment opportunities, echoing last year's findings.
For non-buyers, budget limitations and perceived price hikes were deterrents. Inability to afford properties in preferred locations, coupled with rising property prices and interest rates, contributed to their hesitance towards purchasing.
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