57% people now prefer homes over other investments: Survey
Real Estate

57% people now prefer homes over other investments: Survey

Confederation of Indian Industry (CII) and Anarock, a real estate consultancy company, conducted the Covid-19 sentiment survey to understand the impact of Covid on people regarding home-buying decisions.

Amidst deals, discounts and cheaper home loans, nearly 62% of respondents in the CII-Anarock Covid-19 sentiment survey consider it expedient to buy homes right away.

While 24% of the respondents have already booked properties (81% of this segment were previously unsure of buying), 38% opted for newly-launched projects.

In terms of consumer preferences, demand for bigger homes across all bedroom-hall-kitchen (BHK) configurations has risen post-Covid. Homes in the 2 BHK category continue to be the hot favourite. However, buyers are now also on the market for larger sizes, with 69% of the survey's property-favouring respondents now prefer bigger 2 BHKs (>600 sq ft area) vis-à-vis just 38% in the pre-Covid period. Previously, 62% of buyers preferred compact 2 BHK units sized within 600 sq ft area.

The popularity of bigger configurations━3 BHK and 4 BHK━has also increased as compared to the pre-Covid survey, most notably among non-resident Indians (NRIs). The latest edition of this survey finds that most NRIs now prefer luxury homes priced between Rs 90 lakh to Rs 2.5 crore 3 BHK and 4 BHK homes are on top of their wish list. Out of the total 24% respondents who had already booked property recently, 38% were NRIs.

Real estate's popularity as an investment asset class increased perceptibly post Covid-19. 


About 57% respondents now favour property over fixed deposits, the stock market, and gold. 59% property-favouring respondents were convinced after the pandemic unfolded, after riding the fence of uncertainty before Covid-19.

About 43% respondents now prefer living in peripheral areas while just 28% favour homes in the city limits (in proximity to offices). Demand for branded developers continues to rise and the ratio of demand for branded vs non-branded developers stands at 61:39 post-Covid, as against 52:48 in the pre-pandemic period.

Millennial respondents continue to prefer home ownership over renting; of all respondents favouring real estate as an investment option, at least 48% are aged between 25-35 years.

Equally surprising, there was a decrease in the preference for ready-to-move-in homes, a reduction of at least 17% since the lockdowns and 6% since the pre-Covid levels.

This is vouchsafed by data from Anarock's consumer sentiment surveys done before and during the height of the pandemic in May 2020.

Anuj Puri, Chairman of the CII real estate confluence 2021 and Chairman of Anarock Property Consultants, says, “One major factor for this [trend] could be that post-Covid, new supply was largely by branded developers. Homebuyers consider it safe to buy from strong, organised players. Also, there is limited inventory available in the ready-to-move category.”

The report was unveiled at the 3rd CII real estate confluence themed 'Indian Real Estate Vision 2025'.

Image:The CII-Anarock survey reveals several key post-Covid real estate trends.


Confederation of Indian Industry (CII) and Anarock, a real estate consultancy company, conducted the Covid-19 sentiment survey to understand the impact of Covid on people regarding home-buying decisions. Amidst deals, discounts and cheaper home loans, nearly 62% of respondents in the CII-Anarock Covid-19 sentiment survey consider it expedient to buy homes right away. While 24% of the respondents have already booked properties (81% of this segment were previously unsure of buying), 38% opted for newly-launched projects. In terms of consumer preferences, demand for bigger homes across all bedroom-hall-kitchen (BHK) configurations has risen post-Covid. Homes in the 2 BHK category continue to be the hot favourite. However, buyers are now also on the market for larger sizes, with 69% of the survey's property-favouring respondents now prefer bigger 2 BHKs (>600 sq ft area) vis-à-vis just 38% in the pre-Covid period. Previously, 62% of buyers preferred compact 2 BHK units sized within 600 sq ft area. The popularity of bigger configurations━3 BHK and 4 BHK━has also increased as compared to the pre-Covid survey, most notably among non-resident Indians (NRIs). The latest edition of this survey finds that most NRIs now prefer luxury homes priced between Rs 90 lakh to Rs 2.5 crore 3 BHK and 4 BHK homes are on top of their wish list. Out of the total 24% respondents who had already booked property recently, 38% were NRIs.Real estate's popularity as an investment asset class increased perceptibly post Covid-19.  About 57% respondents now favour property over fixed deposits, the stock market, and gold. 59% property-favouring respondents were convinced after the pandemic unfolded, after riding the fence of uncertainty before Covid-19. About 43% respondents now prefer living in peripheral areas while just 28% favour homes in the city limits (in proximity to offices). Demand for branded developers continues to rise and the ratio of demand for branded vs non-branded developers stands at 61:39 post-Covid, as against 52:48 in the pre-pandemic period. Millennial respondents continue to prefer home ownership over renting; of all respondents favouring real estate as an investment option, at least 48% are aged between 25-35 years. Equally surprising, there was a decrease in the preference for ready-to-move-in homes, a reduction of at least 17% since the lockdowns and 6% since the pre-Covid levels. This is vouchsafed by data from Anarock's consumer sentiment surveys done before and during the height of the pandemic in May 2020. Anuj Puri, Chairman of the CII real estate confluence 2021 and Chairman of Anarock Property Consultants, says, “One major factor for this [trend] could be that post-Covid, new supply was largely by branded developers. Homebuyers consider it safe to buy from strong, organised players. Also, there is limited inventory available in the ready-to-move category.” The report was unveiled at the 3rd CII real estate confluence themed 'Indian Real Estate Vision 2025'.Image:The CII-Anarock survey reveals several key post-Covid real estate trends.

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