34 pc home seekers looking to buy properties between Rs 90 lakh – 2.5 cr

Mumbai, Sep 3 (FN Bureau) The latest CII-ANAROCK Consumer Sentiment Survey underscores how radically COVID-19 has altered homebuyers preferences, with the second wave being a significant change catalyst. For the first time, affordable housing is the lowest priority, with more than 34 per cent respondent home seekers focused on properties priced between Rs 90 lakh to Rs2.5 crore. While 35 per cent favoured properties priced between Rs 45-90 lakh, just 27 per cent respondents voted in favour of affordable housing (priced below Rs 45 lakh). In the previous H2 2020 survey, nearly 36 per cent respondent property seekers eyed budget housing. The CII-ANAROCK survey, conducted between January and June 2021, polled 4,965 participants responding via various digital platforms. While attractive pricing continues to rule the roost of must-haves, established developer credibility is the second-highest priority for 77 per cent of the surveyed buyers.

Project design and location also feature prominently on the wish list. Anuj Puri, Chairman, CII Real Estate Knowledge Session and Founder and Chairman – ANAROCK Group, said, “The budget range which this survey identifies as the hottest seller is a surprise, but it makes sense if we consider that it is precisely this segment of buyers who are least financially impacted by the COVID-19 pandemic. Online home sales are gaining traction, with close to 60 per cent of the entire property buying process now being conducted online – against 39 per cent in the pre-pandemic period.” “From property search to documentation and legal advice to down payments, homebuyers are leveraging the new tidal wave of digital technology driving the Indian housing sector,” Mr Puri said. “Only developers with sufficient online presence will remain relevant going forward. Also, social media are among the most effective property marketing platforms at this stage,” he said. Approximately 41 per cent participating property seekers were considering second homes for self-use, of which 53 per cent prefered mountainous regions. Amid the sustained work-from-home and e-schooling realities, over 65 per cent respondents currently working remotely prefered larger homes, and approximately 68 per cent aimed to relocate to peripheral or suburban areas to buy them. NRI participants in the CII-ANAROCK survey primarily prefered luxury properties priced between Rs 1.5-2.5 crore.

Among the metros, Bengaluru, Pune, and Chennai were the hottest NRI picks, while Chandigarh, Kochi, and Surat top their Tier 2 and 3 cities list. The CII-ANAROCK survey also highlights a stark contrast between consumer preferences during the first and second waves of the Covid pandemic. Investor confidence in real estate has risen to 54 per cent during the second COVID-19 wave, against 48 per cent in the first wave. Ready-to-move homes are still the most preferred category at 32 per cent upvotes, but this is still a dip of 14 per cent from first wave levels. Currently, branded developers dominate the new housing supply, and buyers consider them safe bets; also, the available inventory of RTMI homes is limited. Nearly 71 per cent respondent property seekers in the second wave are end-users, and only 29 per cent are investors. In the first wave period survey, investors accounted for 41 per cent. A significant factor possibly driving this is the increased desire to acquire second homes in greener, healthier environs during the pandemic-infused lockdowns. For 72 per cent of respondents, designated walking trails are must-haves, while 68 per cent require adequate open green spaces amid massively increased health awareness, the survey said.