The Indian real estate sector has shown remarkable resilience and growth post the COVID-19 pandemic, according to a recent survey conducted by Shree Katariya & Associates (SKAA). The survey, titled "Consumer Outlook on Indian Real Estate Market - Post Covid-19 Growth Analysis," aimed to understand the evolving preferences and sentiments of home buyers in the wake of the pandemic-induced changes.
Positive Growth Trends
Despite global economic uncertainties, the Indian real estate market has reached an all-time high in 2023, with over 2.82 lakh units sold. Forecasts predict sustained momentum with expected year-on-year growth of 10-15%, projecting sales to exceed 3,00,000 units in the coming year.
Several factors contribute to this resilience, including government initiatives, stable economic indicators, and infrastructure projects like the Smart City initiative. Low unemployment rates, favourable inflation rates, and substantial salary hikes further bolster the market outlook.
Changing Consumer Preferences
The survey reveals significant shifts in buyers' preferences and budget allocations post-COVID-19. There is a growing demand for larger homes and dedicated office spaces, reflecting the changing dynamics of remote work culture. Homeownership is increasingly seen as a tangible asset in investment portfolios.
Investment Preferences
Real estate emerges as the preferred asset class for investment in 2024, with 58% of respondents expressing their preference for property. This sentiment is driven by the perceived significance of homeownership and the potential for high returns on investment.
While stock and mutual funds garner 26% of the vote, gold and fixed deposits lag behind at 12% and 4% respectively.
Optimistic Market Outlook
A vast majority of respondents (71%) view the current period as an ideal opportunity to buy property, citing the significance of homeownership during the pandemic and the promise of better returns on investment. Only a small fraction (2%) hesitates due to increased property prices and personal circumstances.
Expectations on Property Prices
The survey indicates widespread optimism regarding property prices, with 87% of respondents expecting further growth. While 69% anticipate a steady increase, while 18% believe they’ll go up, but not as fast as post Covid-19.
Preferred Property Types and Budgets
Residential plots emerge as the top choice for 41% of respondents, followed by villas/row houses (27%) and flats/apartments (24%). Affordability remains a key consideration, with 78% of property seekers expressing a preference for properties within a budget of ₹50 lakhs.
End Users vs. Investors
While 53% of respondents purchase property for end-use, 47% are investors, indicating a balanced market dynamic. Surprisingly, 67% of investors come from the salaried class, showcasing a shift in investment behaviour towards long-term property ownership.
Preference for Ready-to-Move Properties
Over 42% of respondents prioritize ready-to-move-in properties to avoid delays and enjoy immediate occupancy. However, as the pandemic recedes, Millennials and Gen X are increasingly shifting towards properties at earlier stages, indicating a transition from end-users to investors.
Challenges and Opportunities
Key challenges delaying purchase decisions include lack of funds, limited understanding of financing options, exploring other options, and personal circumstances. However, there is optimism as 37% of respondents are ready to buy if they find the right deal.
Conclusion
The survey by SKAA provides invaluable insights into the evolving landscape of the Indian real estate market. Despite challenges, the sector continues to thrive, driven by changing consumer preferences, optimistic market outlook, and investment opportunities. Armed with these insights, stakeholders can navigate the dynamic market with confidence and strategic foresight.
About Shree Katariya & Associates
Shree Katariya & Associates (SKAA) is a leading real estate marketing company based in Indore, renowned for its exceptional growth and customer-centric approach. With over 14 years of experience, 6+ projects, and a portfolio of 1500+ units, SKAA embodies transparency, compliance, and excellence in every transaction. Leveraging world-class technology and a dedicated team of professionals, SKAA ensures an unparalleled experience for both buyers and developers, shaping the future of Indian real estate.
In conclusion, the post-COVID Indian real estate market stands as a testament to resilience, adaptability, and unwavering consumer confidence. As stakeholders embark on their real estate journey, armed with insights from Shree Katariya & Associates' Consumer Sentiment Survey, they pave the way for a future defined by growth, prosperity, and enduring success.
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