As demand for 3BHK homes overtook 2BHK for the first time, consumer sentiment survey says home loan interest rate hike beyond 9.5% mark is likely to have a significant impact on home sales. At least 44% of respondents preferred 3BHK, followed by 38% in favor of 2BHK, according to the survey conducted by industry body CII-Abarock. In the H1 2021 edition of the survey, 46% preferred 2BHK and 40% voted for 3BHK. Similarly, demand for 4BHK has also increased – from 2% in the pre-Covid survey to 7% now.
The survey, conducted between January and June 2022, interviewed 5,500 participants responding via various digital platforms. This is all the more significant as the survey also highlighted high inflation as a major cause of concern for homebuyers surveyed. 61% said their disposable income was “mostly impacted”. Most survey participants (92%) predict the economy will remain at current levels or improve slightly over the next 12 months. In the first half of 2021 survey, respondents were more optimistic about the economy – at least 16% expected it to improve significantly over the next year.
“The demand for homes priced above Rs 1.5 crore continues to grow,” said Anuj Puri, Chairman of CII’s Real Estate Knowledge Session on Harnessing Consumer Rhythm and Chairman of ANAROCK Group. “Compared to the pre-Covid 2019 survey, the vote share for these homes increased by 4% – from 6% pre-Covid to 10% in the first half of 2022. Driven by growing demand for luxury homes, Developers also significantly increased new supply in this category in H1 2022.
ANAROCK data revealed that 33,210 units priced at Rs 1.5 cr and above were launched across the seven major cities in the first half of 2022. In contrast, the first half of 2019 saw only 16,110 units launched in this segment. “The pandemic effect on house sizes continues – larger spaces in non-central urban areas remain in high demand in major cities. The reopening of offices and schools has changed this trend little – as growing demand for 3BHK setup versus 2BHK vouchers,” Puri said.
Interestingly, investors with an investment horizon of 8 to 10 years have the most positive outlook in the first half of 2022. More than half of investors surveyed believe that the current real estate market is a better investment proposition than it was. was only 12 months ago, according to the survey. The survey also highlighted that while ready-to-move-in homes still attract the greatest demand from buyers, the demand gap between ready and under construction options continues to narrow. The launch request vs ready ratio is 30:25 in the H1 2022 survey, while it was 46:18 in the H1 2020 edition.