Real Estate Dominates India’s Investment Preferences in 2024: FICCI-ANAROCK Report

A recent FICCI-ANAROCK report highlights that real estate continues to be the top investment choice for Indians in 2024. The report, which surveyed 7,615 respondents across 14 cities, revealed that 59% prefer investing in real estate. Among these, 67% aim to purchase a home for personal use, while 33% view it as an investment opportunity. Notably, 57% of investors within the latter group seek rental income, and 20% plan to sell once property values appreciate.

Real estate continues to be the top investment choice in India for 2024

Real estate remains a key priority even for millennials. The report showed that 66% of millennials and 41% of Generation X respondents are keen on using investment gains to buy a home in the future. There’s also a growing interest in under-construction properties, with 25 respondents opting for them against every 20 choosing ready-to-move-in homes in the first half of 2024, indicating a shift from the 32:21 ratio seen in 2021.

However, dissatisfaction with affordable housing persists. Over 53% of homebuyers cite issues like poor location accessibility (92%), subpar construction design (84%), and small unit sizes (68%). The availability of affordable housing has dropped in top Indian cities, with supply falling from 26% in 2021 to 17% in 2024.

Despite these challenges, preferences vary by region. In cities like Chennai, Hyderabad, Delhi-NCR, and Bengaluru, over 50% of respondents prefer 3BHK apartments, whereas, in metros like Kolkata, Mumbai, and Pune, 2BHK units are more popular.

Luxury housing demand has also surged, with 28% of buyers now interested in properties priced between Rs 90 lakh and Rs 1.5 crore, up from 18% pre-pandemic. The most common budget range remains Rs 45-90 lakh, chosen by 35% of respondents.

Timely project completion (98%), improved construction quality (93%), and well-lit, ventilated homes (72%) are the top priorities for under-construction properties. Indians are increasingly favoring larger, more luxurious homes, with 3BHKs and apartments being the top choice for 51% and 58% of respondents, respectively.

Moreover, residential plots are gaining popularity, especially in southern cities like Chennai (30%), Bengaluru (29%), and Hyderabad (27%).

Home loan interest rates are a major factor in home buying decisions. The report suggests that interest rates below 8.5% have minimal impact on 71% of buyers, but rates above 9% significantly affect 87% of them. With the RBI maintaining its stance on interest rates, experts predict cuts may begin early next year.

As India continues to experience evolving housing preferences, real estate remains a strong pillar in investment portfolios across the country.