Despite surging real estate prices and home loan rates, a recent report by NAREDCO and Housing.com, dated September 21, indicates that investors continue to favor real estate assets over gold, stocks, and fixed deposits. The report, titled "Residential Realty Consumer Sentiment Outlook H2 2023 – Trends and Insights," reveals that 48 percent of survey participants express a preference for real estate investment, with 18 percent opting for the stock market, 19 percent choosing fixed deposits, and 15 percent selecting gold.
The survey also underscores the growing demand among prospective homebuyers for tax incentives and flexible payment options. Furthermore, these buyers are enticed by additional incentives provided by developers. Tax incentives, such as stamp duty and GST waivers, as well as flexible payment plans, emerge as the primary drivers motivating home purchases in the upcoming six months.
Despite external uncertainties, the report identifies a robust consumer demand within the property market, with sales in the primary market witnessing a notable 15 percent annual increase in the first half of 2023.
Factors contributing to this surge in the real estate sector include an increased emphasis on homeownership, the adoption of hybrid work models, and heightened priorities regarding safety and security in the post-COVID era, as highlighted by Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com, and Makaan.com.
The report also emphasizes that the demand for ready-to-move-in residential properties has eclipsed that for under-construction projects. Features such as modular kitchens and custom woodwork play pivotal roles in influencing buyer decisions.
Given the escalating property prices and interest rates, incentives like stamp duty and GST waivers are expected to play a crucial role in influencing future home purchases, making homeownership more enticing and accessible.
Rajan Bandelkar, President of NAREDCO, underscores the significance of personalized support throughout the property selection process, as it proves critical in closing deals and enhancing the overall homebuying experience.
Looking ahead, Ankita Sood, Head of Research at Housing.com, PropTiger.com, and Makaan.com, anticipates that homebuyer sentiment regarding the property market will remain optimistic. However, she cautions that ongoing geopolitical conflicts may influence demand across various sectors.
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