* Homebuyers Seek Tax Incentives, Flexible Payment Options, and Added Perks; Prefer Completed Properties Over Under Construction Properties
Amid escalating housing prices and increasing home loan rates over the past year, prospective homebuyers are seeking tax incentives and flexible payment plans. They are also inclined towards additional perks offered by developers, according to a survey conducted by Housing.com, a leading PropTech company, in collaboration with real estate industry body NAREDCO.
The demand for ready-to-move-in residential properties outstrips that for under-construction projects. Housing.com and NAREDCO released their latest survey report, "Residential Realty Consumer Sentiment Outlook H2 2023 – Trends and Insights,". The online survey engaged over a thousand potential homebuyers and was conducted between January and June 2023.
According to the survey, 48% of respondents favour real estate investment, significantly outperforming other asset classes such as stocks, fixed deposits, and gold. The data indicates that 18% prefer the stock market, 19% opt for fixed deposits, and 15% choose gold.
Mr. Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com & Makaan.com, commented, "Throughout history, real estate has been a cornerstone of investment. The COVID-19 pandemic has enhanced its relevance, making it the preferred choice for many. Factors such as the emphasis on homeownership, the rise of hybrid work models, and the importance of safety and security have elevated the real estate sector to new heights."
Mr. Rajan Bandelkar, President of NAREDCO, observed, "The recent G20 summit will positively influence the overall economy and could reshape India's real estate through policy, investment, and sustainability considerations. The increasing consumer confidence surpasses the lows experienced during the pandemic’s peak. Though income outlooks have slightly declined, real estate continues to be the asset class of choice for 48% of respondents."
Mr. Bandelkar further added, "Due to escalating property prices and interest rates, incentives like stamp duty and GST waivers are key influencers for home purchases in the near future. These incentives aim to make homeownership more appealing and accessible. The survey highlights the value of personalized support following property shortlisting, which is critical for closing deals and enhancing the overall homebuying experience."
Tax incentives, such as stamp duty and GST waivers, along with flexible payment plans, are identified as the primary motivators for homebuying in the upcoming six months, according to the report.
"In recent years, we've seen a noticeable uptick in housing prices, reversing nearly a decade of stagnation. Despite a 2.5% increase in home loan interest rates this year, the real estate market has shown resilience. This robustness can be attributed to both pent-up and emerging demand," elaborated Mr. Agarwala.
Ms. Ankita Sood, Head of Research, Housing.com, PropTiger.com & Makaan.com said, “Driven by strong domestic demand, India’s economy is expected to grow at the highest rate among major economies. This buoyancy in consumer demand is visible in the property market as-well, where despite weak external cues, sales in the primary market registered a 15% yearly uptick in the first half of 2023. Capturing the market confidence, our realty consumer survey, a leading indicator to gauge consumer sentiments highlights the homebuyer confidence in both the economy and their future earnings, factors pivotal for a high value purchase as property. To add to this, preference to invest in real estate continues to reign above all other forms of investment avenues exhibiting strong market fundamentals.”
Ms. Sood, further emphasised “Looking ahead, the homebuyer sentiments regards the property market is expected to remain in the optimistic zone. Although, one has to be mindful of the on-going geo-political conflicts which may have a bearing on demand across sectors.”
The survey also indicates that ready-to-move-in homes and gated communities are the most desired property types. Additional perks like modular kitchens and custom woodwork are influential factors for buyers during their decision-making process.
Personalized assistance post-property shortlisting is deemed crucial for prospective homebuyers in closing their purchases, adds the Housing.com & NAREDCO survey.
Founded in 2012 and acquired by REA India (formerly known as Elara Technologies Pte. Ltd.) in 2017, Housing.com stands as India's premier full-stack proptech platform catering to homeowners, home seekers, landlords, developers, and real estate brokers. Housing.com provides comprehensive listings for a wide range of properties, including new homes, resale homes, rentals, plots, commercial spaces, and co-living accommodations across India. Company is backed by robust research and analytics, offering a spectrum of real estate services encompassing advertising, marketing, sales solutions for real estate developers, personalised search & insights, virtual viewing, AR&VR content, home loans, end-to-end transaction services, and post-transaction support for both buyers and renters. Additionally, we offer a suite of online services through our Housing Edge brand, including features like Pay on credit, movers & packers, lending services, online rent agreements, and an array of DIY services, catering to both customers and landlords. With a presence in 24 tier-I and II cities, our mission is to simplify the home buying, selling, and renting journey for our valued customers. REA India is a group company of global proptech leader, REA Group of Australia that is over 20 Billion AUD company.
National Real Estate Development Council (NAREDCO) was established as an autonomous self-regulatory body in 1998 under the aegis of the Ministry of Housing and Urban Affairs, Govt. of India. It is in this year that the Government of India redrafted the National Housing & Habitat Policy, giving due importance to the Housing and Real Estate sector, thereby declaring housing for all citizens by the year 2010. The Indian housing and real estate sectors and the allied industries hailed the establishment of NAREDCO as the apex national body for the real estate industry. They visualized it as a single platform where Government, industry and public would discuss various problems and opportunities face to face, which would result in speedy resolution of issues. It was formed with the mandate to induce transparency and ethics in the real estate business and transform the unorganised Indian real estate sector into a mature and globally competitive business sector.
The National Real Estate Development Council functions as Development & Promotion Council for the housing & real estate sector in India and strives to be the collective force influencing and shaping the real estate industry. It seeks to be the leading advocate of developing standards for efficient, effective, and ethical real estate business practices, valued by all stakeholders of the real estate sector and viewed by them as crucial to their success. NAREDCO works to create and sustain an environment conducive to the growth of the real estate industry in India, partnering with industry and government alike through advisory and consultative processes.