The desire for homeownership has grown substantially, with a particular emphasis on luxury properties. Homes priced above Rs 1 crore witnessed a notable uptick in demand, and those exceeding Rs 2.5 crore experienced even higher growth. This sentiment persisted despite rising home loan rates and property prices, showcasing a resilient commitment to homeownership.
A noteworthy trend last year was the growing interest in owning land. Indians sought the security and capital appreciation potential that comes with owning a piece of land. The launch of plot projects, surged by over 100 per cent in metropolitan cities, attracted both individual buyers and investors.
NoBroker’s Report showed that a staggering 86 per cent of survey participants believed that now was a good time to purchase property, with 77 per cent stating their intention to buy property in 2023 itself. Increased rent prices appeared to be the main reason for this.
Gated communities became the preferred living choice for those returning to workplace cities. These communities offer comfort and security, leading to quick occupancy and subsequently contributing to rent inflation. Conversely, standalone buildings took longer to rent out due to the heightened demand for gated communities.
The report found that ownership of a physical asset (38 per cent), security (30 per cent), and affordability (29 per cent) were the top reasons motivating property purchases. The pandemic further reinforced this sentiment, aligning with the traditional Indian priority of owning a home.
The preference for ready-to-move-in properties remained dominant, with a slight increase in interest towards plots. This shift could be attributed to the potential for higher price appreciation that plots offer.
Security and access to modern amenities drove the demand for society flats, while independent houses remained a choice among those in Bangalore, Chennai, and Hyderabad. The desire for properties within city limits increased by two per cent in 2022 as people gradually returned to offices and schools.
Among survey participants, 68 per cent stated that budget was the top priority, followed by civic amenities like water (40 per cent) and ease of daily commute (36 per cent). Other factors included apartment size, amenities and scope of property price appreciation.
Most buyers aimed to purchase properties below Rs 1 crore, with 2BHK units being the most sought-after due to their affordability and resale value. However, larger units, such as 3- and 4BHK, maintained popularity due to the demand for more spacious homes. Around 16 per cent expressed the desire to purchase over Rs 1 crore, while the majority (43 per cent) aimed for something below Rs 60 lakh.
Construction quality and RERA compliance emerged as the paramount factors influencing property shortlisting. Buyers also considered builder credibility and performance history before making their investment decisions.
The report also indicated that 82 per cent of buyers were looking for properties for end-use, while 18 per cent sought investment opportunities. This was the same findings as last year.
For non-buyers, budget constraints and perceived price increases were key deterrents. The inability to afford properties in desired locations (47 per cent), coupled with rising property prices (21 per cent) and interest rates (17 per cent), contributed to their reluctance to buy.
