The ANAROCK-FICCI survey has made a major statement about the decline in affordable housing sales in the country post-Covid-19. According to the 2024 Home Buyer Sentiment Survey, 53% are dissatisfied with affordable housing. Reasons for the decline in sales cited in the survey include:
1. Location issues cause 92% of affordable housing buyers to be dissatisfied.
2. 84% of people have complaints about construction quality.
3. 68% of home buyers believe that residential units are too small to meet the needs of their families.
The drop in demand has a direct impact on new projects. Data show that as of the third quarter of 2024, only 17% of projects are affordable housing projects, while in 2021, the proportion of affordable housing projects will be 26%.
Before the COVID-19 pandemic, the share of low-cost housing projects was as high as 40%. According to experts, people are now increasingly interested in 3BHK houses.
Demand for 2BHK houses decreases
According to ANAROCK-FICCI’s 2024 Home Buyer Sentiment Survey, 51% prefer larger apartments. And only 39% of people need 2BHK.
The demand for large apartments is high in Chennai, Delhi-NCR and Bengaluru, while the demand for 2BHKs continues to exist in Mumbai and Pune. Another big change is in buyer priorities. Now, people can easily book houses even if they are under construction projects.
Find out what types of homes are for sale…
The survey shows that the ratio of new construction starts to houses to be moved in 2020 was 46:18, but now it has increased to 20:25. This is due to increased buyer confidence in leading developers who are committed to completing projects on time.
The survey also revealed some interesting information about investing, with 57% of investors now focusing on rental income.
The reason is that rents in major areas have increased by 70% in the past two years. Therefore, real estate investors are investing in those areas where they can get good rental income.
