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CII-ANAROCK survey Shows Increased Demands of 3 BHKs in 2022

Opportunity India Desk
Opportunity India Desk Sep 29 2022 - 3 min read
CII-ANAROCK survey Shows Increased Demands of 3 BHKs in 2022
The survey also highlights that major concern for homebuyers is raising inflation. A large number of respondents, 61 per cent, have said that their disposable income is ‘Majorly Impacted’.

The Confederation of Indian Industry (CII) and ANAROCK have jointly organised a survey to understand the demand in various sectors of Real Estate industry. According to the survey, named CII-ANAROCK Consumer Sentiment Survey - H1 2022, demand for 2 BHKs (Bedroom, Hall, and Kitchen) is getting down as compared to 3 BHKs for the first time. 38 percent of people participated in survey chose 2 BHKs as their first choice while people choosing 3 BHKs were around 44 percent.  The results of same survey for the period of 2021 H1 were, 46 per cent preferred 2BHKs while 40 per cent voted for 3BHKs. In 4BHKs category the demands has seen a minor growth from 2 per cent in the pre-Covid survey to 7 per cent.  The survey was performed on 5,500 participants between January and June 2022.

The survey also highlights that major concern for homebuyers is raising inflation. A large number of respondents, 61 per cent, have said that their disposable income is ‘Majorly Impacted’. 92 per cent of respondents are expecting the economy to either stay at what it is now or grow in upcoming 12 months. In the H1 2021 survey, respondents were more bullish about the economy - at least 16 per cent expected it to improve significantly over the next one year.

"The demand for homes prices > INR 1.5 Cr continues to grow," says Anuj Puri, Chairman – CII Real Estate Knowledge Session on Tapping the Consumer Beat and Chairman - ANAROCK Group. "Compared to the pre-Covid 2019 survey, there has been a 4 per cent rise in the vote share for these homes – from 6 per cent pre-Covid to 10 per cent in H1 2022. Buoyed by the increasing demand for luxury homes, developers have also significantly increased the new supply in this category in H1 2022. ANAROCK data reveals that 33,210 units priced INR 1.5 Cr and above were launched across the top 7 cities in H1 2022. Contrastingly, H1 2019 saw just 16,110 units launched in this segment."

"The pandemic effect on home sizes continues - larger spaces in non-core urban areas remain in higher demand across the top cities. The reopening of offices and schools has changed little about this trend - as the increasing demand for the 3BHK configuration over 2BHKs vouchsafes,” says Puri.

Interestingly, investors with an 8–10-year investment horizon have the most positive outlook in H1 2022. More than half of respondent investors feel that the current housing market is a better investment proposition than it was 12 months ago. The survey also highlights that while ready-to-move homes still draw top buyer demand, the demand gap between ready and under-construction options continues to narrow. The ready vs. new launch demand ratio is 30:25 in the H1 2022 survey, while it was 46:18 in the H1 2020 edition.

Other Survey Highlights

  • Preference for real estate over other asset classes is growing. In the H1 2022 survey, 59 per cent of respondents prefer to invest in real estate, against 54 per cent last year
  • Buying homes with capital gains from other investment asset classes like the stock market and mutual funds is the top priority for millennials and Generation X – with 56 per cent and 38 per cent respectively voting in its favour
  • The residential market remains dominated by end-users, with 69 per cent of respondents looking to buy homes for self-use and 31 per cent for investment
  • Newly-launched properties gaining traction – 25 per cent of respondents now prefer new projects as against 18 per cent during the 1st Covid wave survey (H1 2020)
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