CII-ANAROCK Consumer Sentiment Survey

Dr. Niranjan Hiranandani, National President, NAREDCO and MD Hiranandani Group

Second Covid-19 wave had far reaching disruptions as compared to the first wave. The underpinned realization of owning one’s own home as being the safest place resulted in higher quantum of property sales. The GDP numbers for Q1 2021-22 also reflected positive growth trends in the economy with strong sectoral growth registered.

Demand for homes has grown, with all segments seeing an uptick in demand. First homes are being bought at a similar rate as homes are being upgraded. Peripheral suburban areas will be the new realty hot-spots and urban conglomerations like the Mumbai Metropolitan Region (MMR) will see new locations growing in buyer preference, the trend driven by the shift in economic activities along with well-planned infra coupled with homebuyers’ preference for holistic living with luxury of additional space.

The second Covid wave was ‘a significant change catalyst’. The survey shows how affordable housing has reduced numbers of home seekers opting for the same. The survey shows just 27 per cent of respondents favouring affordable housing where price points are below Rs. 45 lakhs. In the previous H2 2020 survey, nearly 36 per cent of respondent property seekers had said they were evaluating budget housing. This drop in numbers of affordable home seekers saw luxury and mid-level priced homes both posting a higher percentage of home seekers opting for the same, 34 per cent for luxe and 35 per cent for mid-level priced homes.  Covid pandemic has already led to the paradigm shift in home buying , and we may see more changes through the festive season.