Affordable Housing Demand Drops Post-Covid: ANAROCK-FICCI Survey Insights
The demand for affordable housing has significantly decreased since the Covid-19 pandemic, according to a recent ANAROCK-FICCI Homebuyer Sentiment Survey for the first half of 2024. The survey found that 53% of buyers in this segment are unhappy with the available options in cities. The main reasons for dissatisfaction include poor project location, low construction quality, and small unit sizes.
Key Findings
Anuj Puri, Chairman of ANAROCK Group, highlighted that the top reasons for buyer dissatisfaction are bad project location accessibility, questionable construction quality, and poor design. The survey also noted a decline in the supply of affordable housing, dropping from 26% of total launches in 2021 to 17% by 9M 2024. Before the pandemic in 2019, affordable homes accounted for 40% of new projects.
Changing Preferences
Despite rising prices, there is a growing preference for larger homes. Over 51% of respondents prefer 3BHK apartments, with high demand in cities like Chennai, Hyderabad, Delhi-NCR, and Bengaluru. In contrast, 2BHKs are more popular in Kolkata, Mumbai Metropolitan Region (MMR), and Pune.
There is also a shift in buyer preferences towards newly launched homes rather than ready-to-move-in properties. At least 57% of residential property investors are now focused on securing steady rental income, as rental rates have surged by over 70% in key markets over the past two years.
Interest in Premium Homes
The demand for premium and luxury homes has grown, with 28% of respondents preferring homes priced between Rs 90 lakh and Rs 1.5 crore, compared to 18% in the pre-Covid period. There is also a growing interest in residential plots, especially in southern cities like Chennai, Bengaluru, and Hyderabad, where villas and row houses are gaining popularity.
In contrast, most buyers in MMR, NCR, and Pune continue to prefer apartments. The survey also noted that homebuyers today prioritize timely project completion, improved construction quality, and well-ventilated homes.
Doubts Revealed
ANAROCK -: ANAROCK is a real estate services company in India that provides property consulting and advisory services. They help people buy, sell, and manage properties.
FICCI -: FICCI stands for the Federation of Indian Chambers of Commerce and Industry. It is an association of business organizations in India that works to promote and protect the interests of Indian businesses.
H1 2024 -: H1 2024 refers to the first half of the year 2024, which includes the months from January to June.
3BHK -: 3BHK stands for a house or apartment with 3 bedrooms, a hall, and a kitchen. It is a common type of housing in India, especially for families.
Residential plots -: Residential plots are pieces of land where people can build their homes. They are popular because they allow people to design and construct their own houses.
Villas -: Villas are large, luxurious houses, often with gardens or open spaces. They are usually more expensive and offer more privacy and space compared to regular apartments.