Higher Prices

Higher-Prices
The CII-ANAROCK Survey Report Cover, H2-2021

Fifty-six percent of participants in the CII-ANAROCK survey expect a housing-price hike in 2022; affordable housing demand will sink further.

A full 56% of respondents of the CII-ANAROCK Consumer Survey-H2 2021 expect housing prices to rise in 2022 due to inflationary trends in construction raw materials, as well as overall operational costs for developers. The survey, conducted between July and December 2021, polled 5,210 participants via various digital platforms across Tier 1, Tier 2 and Tier 3 cities.

In a quantitative analysis of the likely consumer reaction to such a price rise, the survey finds that an under-10% increase would have a moderate-to-low impact. However, an increase over 10% would have more profound repercussions on buyer sentiment.

The survey also identifies an increasing demand for newly launched properties in cities like Mumbai Metropolitan Region (MMR) and Bengaluru. Though ready-to-move-in (RTM) homes are still the most preferred category for 32% of respondents, this denotes a 14% reduction for this preference since the first COVID-19 wave.

Over 31% of buyers in MMR and Bengaluru have a positive outlook on newly launched projects, possibly indicating a return of investors in these markets. Another major factor influencing this change is that, post-COVID-19, the new housing supply is dominated by branded developers, which homebuyers perceive as safe.

Anuj Puri, conference chairman, 4th CII Real Estate Confluence, and chairman, ANAROCK Group, notes to those interested in the association:

“Votes favoring real estate as an asset class rose by 3% in this survey, from 54% in the H1 2021 edition to 57% in H2 2021. This is especially significant since housing prices are likely to rise by 5-8% in 2022 due to increased input cost pressure and supply chain issues. Hardening interest rates, which are very likely in the second half of 2022, will be another factor driving up the overall acquisition cost for homebuyers. Fifty-six percent of respondent homebuyers are aware of this.”

“Nevertheless, the new pandemic-induced desire for homeownership continues to be robust,” Puri added. “At least 63% of previously fence-sitting respondents are now determined to become homeowners. For another 30%, the pandemic has not impacted their buying decisions, effectively resulting in 93% of respondents now convinced homebuyers.”

The survey also studies the property types in highest demand across cities, from preferred property sizes, hottest-selling budget ranges and residential plots.

Residential plots are the second-most preferred property type in the top seven cities, and the most preferred option in Tier 2 and Tier 3 cities and towns. Apartments are still the property type of choice for urban buyers. Only 17% of surveyed urban buyers will pick a plotted development over other property types, but a significant 51% of respondents from Tier 2 and Tier 3 cities favor plotted developments. Meanwhile, 21% of respondents in Chennai, 18% in Bengaluru and 16% in Kolkata will buy plotted developments.

Extra living space continues to be a major ask amid ongoing and resilient WFH and e-schooling realities. A listing of 28% of respondents will buy homes with that extra half BHK (bedroom, hall and kitchen). A reported 72% had not considered this extra space essential before the COVID-19 pandemic.

Approximately 43% of respondents will buy homes in the city peripheries. Just 22% now prefer to live within city limits and close to office hubs. The future of work is tilting toward the hybrid model, and proximity to offices is no longer a significant concern.

In terms of budget preferences, approximately 63% prefer homes in the mid and premium segments priced within Rs. 45 lakh to Rs. 1.5 crore (INR4.5 million to INR15 million; US$59,500 to US$198,000). The demand for affordable housing has dropped further: from 40% of votes in the survey’s H2 2020 edition to 27% in H1 2021 and 25% in H2 2021.

submitted by CII-ANAROCK

submitted by CII-ANAROCK

Get more of Elevator World. Sign up for our free e-newsletter.

Please enter a valid email address.
Something went wrong. Please check your entries and try again.
Elevator-World---Fallback-Image

Taking Care of Electrical

Elevator-World---Fallback-Image

All That Glitters Is Not Gold

Building-Green

Building Green

Safety-Norms-for-Existing-Lifts-6

Safety Norms for Existing Lifts

11th International Seminar on Elevators and Escalators

11th International Seminar on Elevators and Escalators

Loving the Lifts

Loving the Lifts

Elevator’s Global Challenges

Elevator’s Global Challenges

Seeking Cinderella’s Fairy Godmother

Seeking Cinderella’s Fairy Godmother