61% of middle-income homebuyers believe prices will rise in the next year (survey)
Over 60% of middle-income homebuyers in India expect the prices of their primary residences to rise in the next 12 months, according to a Knight Frank survey.
About 30 percent of those polled in the survey expect rates to increase by as much as 9 percent, while 25 percent hope prices will rise by 10-19 percent and 6 percent believe that rates will increase by more than 20 percent.
The consultant released the Global Buyer Survey on Wednesday which analyzed the impact of the COVID-19 pandemic on the attitudes of residential buyers towards buying homes around the world.
Knight Frank also conducted a two-part primary survey for India, with a total sample size of over 550 people.
The first part of the survey included respondents in the high-end income segment, called the ‘global Indian segment’, while the second part assessed the sentiment of buyers in the middle income segment called the ‘main Indian segment’. .
In the Indian edition of the survey, 26% of traditional Indians had moved their residence during the pandemic period.
“These moves were driven by factors such as the desire for more open space and closeness to friends and family,” he said.
For Indians who did not move, 32% were more likely to move in the next 12 months.
An overwhelming 87 percent of respondents who wish to relocate within the following year prefer the suburban neighborhood of their current city of residence, while 13 percent of respondents who wish to relocate may consider another city.
Regarding the price outlook, the report states that 64% of respondents expect the value of their primary residence to increase in the next 12 months.
In the case of the Global Indian segment, which represents the highest earning segment, 32 percent expect prices to rise.
“Reflecting a more optimistic outlook, 61% of respondents in the traditional Indian segment expect the prices of their primary residences to increase over the next 12 months,” said Knight Frank.
Among other results, 32% of respondents from the traditional Indian segment expressed a willingness to move into new accommodation in the next 12 months due to the pandemic, while 14% of the global Indian segment indicated a desire to relocate. .
The report stressed that the future of work will play an important role not only for the commercial sector but also for the residential sector.
More than half of those surveyed in the Indian mainstream segment expect to be back in the office for the entire work week after all restrictions are lifted.
Up to 47% of respondents in the global Indian segment plan to continue working 2-4 days a week from the office after all restrictions are lifted.
In the traditional Indian segment, the strongest inclination towards five working days in the office has been shown by professionals such as lawyers, architects, doctors, accountants, etc.
In the case of the salaried class segment, the preference for office work ranged from 3 to 5 days.
Shishir Baijal, President and CEO of Knight Frank India, said: “The pandemic has changed the outlook on home ownership. “
“Our survey confirms that across the spectrum of Indian homebuyers, 32 percent have expressed interest in moving from their pre-pandemic homes.”
In addition to the propensity to spend and the type of house that usually govern an Indian buyer’s buying decision, Baijal said factors such as access to open green spaces, health care and proximity to the place of residence. work also began to play an important role.
“Energy efficient homes are also gaining ground as the concept is preferred by home buyers in India,” he added.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)