FICCI-Anarock Report: Major Shifts in Homebuyer Preferences in India's Real Estate Market

The latest "Homebuyer Sentiment Survey - H1 2024," conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and ANAROCK Property Consultants, reveals noteworthy changes in the preferences of homebuyers and the evolving dynamics of India's real estate sector.

FICCI-Anarock Report 2024: Shifts in Homebuyer Preferences in India's Real Estate Market

Key Findings

The report indicates that real estate continues to be the preferred investment asset class, with 59% of participants favoring it. Among these, 67% of respondents seek properties for personal use, while 33% view real estate as an investment opportunity. A significant trend noted is the decline in demand for ready-to-move-in homes, shifting the ratio of ready homes to new launches from 46:18 in H1 2020 to 20:25 in 2024.

Additionally, the survey highlights a growing preference for larger living spaces, with 51% of participants indicating a preference for 3BHK units. The budget range of Rs 45-90 lakh remains the most favored, attracting 35% of buyers, but there is a noticeable shift towards premium properties. Now, 28% of buyers are interested in homes priced between Rs 90 lakh and Rs 1.5 crore.

Expert Insights

Sandip Somany, the Past President of FICCI and Mentor of the FICCI Committee on Urban Development and Real Estate, commented on the evolving landscape of the Indian real estate market. He noted, "The significant shift in consumer preferences away from ready-to-move homes towards under-construction properties indicates growing confidence in developers and the regulatory environment." This trend reflects a maturing market, positively influenced by regulatory measures such as RERA.

Survey Methodology

The comprehensive survey captured insights from 7,615 participants across 14 cities, shedding light on significant shifts in homebuyer preferences and emerging trends in the Indian residential real estate market.

Regulatory Influence

Pramod Rao, Executive Director of SEBI, emphasized the critical role of regulatory frameworks in promoting sustainable growth within the real estate sector. He stated, "Investor confidence is vital for the industry's long-term success, and SEBI’s focus on transparency and governance has been key in building this trust." He further noted that strong compliance and better disclosures are crucial for attracting institutional investments.

Conclusion

The findings from the FICCI-Anarock report indicate a transformative phase for India's real estate market, characterized by changing consumer preferences and enhanced confidence in the sector. As the landscape continues to evolve, the emphasis on larger living spaces and a shift towards under-construction properties highlight the resilience and adaptability of the market.