New Delhi [India], October 21 : The demand for affordable housing has dropped significantly since the Covid-19 pandemic. A recent ANAROCK-FICCI Homebuyer Sentiment Survey for the first half of 2024 reveals that 53 per cent of buyers in the affordable housing segment are dissatisfied with the options available across cities.
The survey noted the primary reasons for this dissatisfaction are poor project location, low construction quality, and small unit sizes.
"The top three reasons why prospective affordable homebuyers' disenchantment with the currently available affordable housing supply are bad project location accessibility, questionable construction quality and poor design, and constricted unit sizes" said Anuj Puri, Chairman - ANAROCK Group.
As per the survey, declining demand for affordable housing has had a cascading impact on its supply in the last one year. The data highlights the shrinking supply of affordable housing in major cities, dropping from 26 per cent of total launches in 2021 to just 17 per cent by 9M 2024. Prior to the pandemic in 2019, affordable homes made up 40 per cent of new projects.
Despite rising prices, homebuyers are showing a preference for bigger homes. Over 51 per cent of survey respondents said they preferred 3BHK apartments, while 39 per cent opted for 2BHKs. The demand for 3BHK units is particularly high in cities like Chennai, Hyderabad, Delhi-NCR, and Bengaluru. Meanwhile, in Kolkata, Mumbai Metropolitan Region (MMR), and Pune, 2BHKs remain more popular.
The survey also revealed a major shift in buyer preferences for the stage of construction. In H1 2024, more buyers are looking at newly launched homes rather than ready-to-move-in properties.
At least 57 per cent of residential property investors are now focused on securing steady rental income, as rental rates have surged by over 70 per cent in key markets over the past two years.
Additionally, the demand for premium and luxury homes has seen significant growth. In the H1 2024 survey, 28 per cent of respondents expressed a preference for homes priced between Rs 90 lakh and Rs 1.5 crore, compared to just 18 per cent in the pre-Covid period.
The survey also highlighted a growing interest in residential plots, particularly in southern cities. About 30 per cent of buyers in Chennai, 29 per cent in Bengaluru, and 27 per cent in Hyderabad expressed a preference for plots. Villas and row houses are also gaining popularity in these regions. In contrast, most buyers in MMR, NCR, and Pune continue to prefer apartments.
The survey also noted that the top demands from homebuyers today include timely project completion, improved construction quality, and well-ventilated homes.
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