96% of potential buyers claim that a further increase in mortgage rates will affect their decision to purchase a home. CII-Anarock

Ritu Srivastava

According to a CII-Anarock survey, more than 95% of prospective homeowners believe that future increases in mortgage interest rates will have an impact on their decision to buy a property. The poll, which was conducted in conjunction by the industry group CII and the real estate consultant Anarock, attracted 4,662 respondents in total. The fifth CII Real Estate Confluence 2023 in Mumbai saw the release of the research titled "The Housing Market Boom."

"The demand for homes will be impacted by additional increases in house loan rates, according to 96% of questioned purchasers. Future house purchases will be impacted by higher mortgage rates, "In a statement, Anarock stated.

Contrary to what the market anticipated, the RBI maintained the repo rate in its most recent monetary policy.

Price continues to be a significant consideration for more than 80% of those looking to purchase a home since, in addition to home loan interest rates, the cost of land has increased over the past year.

The survey found, among other things, that demand for larger homes has not abated, with 42% of participants preferring 3BHK, 40% 2BHK, 12% 1BHK, and 6% looking for homes with more than 3BHK in arrangement.

Anuj Puri, chairman of Anarock, said: "Rate increases are but one aspect of the overall demand situation. Recent layoffs by both major and small corporations are probably going to affect demand in the next two quarters to some extent and slow the expansion of the housing market."

"Many homebuyers who have been affected by layoffs might postpone their decisions to buy homes until their work situation improves. Nevertheless, everyone's top priority continues to be purchasing a home "Added he.

According to him, the current high level of inflation and the state of the global economy both have an effect on the demand for houses in India.

According to Puri, there are excellent chances that the current turmoil will have subsided by FY25 and the home market will have recovered. Demand that is deferred is simply deferred; it is not cancelled.

The report also revealed that millennials are still the main drivers of home demand.

At least 52% of participants overall who selected real estate as an asset class for investment were millennials, who are mostly wanting to acquire homes for their own use. The end-user vs. investor ratio on the Indian housing market remains 71:29, favouring end-users. Around 77% of the end users that were surveyed as a whole are millennials.

The purchasers questioned are currently focused on three main factors in addition to price points and basic amenities in a project: certainty of a fast project completion, the availability of a study area, and suitable ventilation in the property.

A study space is seen to be absolutely necessary by another 55% of poll participants, 62% of whom are adamant about their homes being well-ventilated. Nearly 90% of respondents said they will not compromise on timely project completion.