According to a survey, the potential and interested homebuyers which account for around 47 percent, think that the price of homes, flats or apartments is going to increase due to the increase in the price of the properties in the residential sector and interest rates.
There has been an increase in the number of non-buyers in the residential sector in megacities like Bangaluru and Mumbai, standing at around 64 percent and 57 percent, as per a study conducted by a real estate company. The survey included a little more than 25000 people who belong to the cities like Bengaluru, Chennai, Delhi-NCR, Hyderabad and Pune.
But it can also be seen that there has been little to no effect on the demand for housing demand.
The industry, according to the research, "shook off the inertia of the last few years to achieve exceptional growth on the back of numerous overlapping drivers, riding high on the increase in consumer demand after the pandemic."ï¿½ Over the past five years, the average price per square foot increased by 7% in Bengaluru, 3.5% in Mumbai, and 4% in Delhi-NCR.ï¿½
At least 21% of those surveyed believed that real estate prices had risen, and 17% claimed that rising loan rates had prevented them from purchasing a property.ï¿½ According to the study, the price increase was larger for homes valued at more than Rs 1 crore. Homes costing more than Rs 2 crore, however, saw an even greater increase.ï¿½ Additionally, the survey also discovered that despite rising mortgage interest rates and increased home loan and property prices, homebuyers' opinions remained favourable.ï¿½
According to the report, "this may be the case since a larger loan-to-value ratio signifies the opportunity to buy a property with higher ticket value."ï¿½ According to the survey, 38% of participants cited security as their main reason for having a physical asset or piece of real estate in the previous year.ï¿½ Migration to the city and mega centres of towns has increased by 2% since last year as a result of rapid urban growth. Less than 30% of those polled, with the exception of Mumbai and Pune, were eager to buy a home in the suburbs.ï¿½
The construction quality of a building was cited by 67% of respondents as a factor in choosing a property.ï¿½
Before buying a home in an Indian city, more purchasers are now verifying regulatory compliance. Before purchasing a physical asset, about 51% of people in Bengaluru, 59% in Mumbai, and 50% in Delhi-NCR looked at the regulatory status.ï¿½ A number of respondents (17%) in Delhi-NCR, as opposed to all other housing markets, claimed that regulatory constraints had not enhanced their confidence in making a property purchase.