Ready-to-move-in residential properties outpace demand for under-construction projects: Survey

The demand for ready-to-move-in residential properties outstrips that for under-construction projects, according to Housing.com and NAREDCO.

Amid escalating housing prices and increasing home loan rates over the past year, prospective homebuyers are seeking tax incentives and flexible payment plans.

According to the survey, 48 per cent of respondents favour real estate investment, significantly outperforming other asset classes such as stocks, fixed deposits and gold. In addition, the data indicates that 18 per cent prefer the stock market, 19 per cent opt for fixed deposits and 15 per cent choose gold.

“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,” said Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com & Makaan.com.

Primary motivators

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.

“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,” said Rajan Bandelkar, President of NAREDCO.

In recent years, we’ve seen a noticeable uptick in housing prices, reversing nearly a decade of stagnation. Despite a 2.5 per cent 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, according toAgarwala.

The survey also indicated 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.

Personalised assistance post-property shortlisting is deemed crucial for prospective homebuyers in closing their purchases, it added.

Housing.com, a proptech company, in collaboration with real estate industry body NAREDCO, released their 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.