Rents in seven major cities across India, including Delhi, have surged by as much as 70 percent over the past two years, as revealed by a recent study conducted by property consultants ANAROCK Group. The research surveyed 7,615 respondents aged 24 to 78 across 14 cities.
The findings highlighted a shift in homebuyer preferences, with 52 percent of homebuyers in the Delhi-NCR region opting for 3BHK apartments, and 38 percent preferring 2BHKs. The report also noted that real estate emerged as the most favoured asset class for investment, with 59 percent of respondents choosing it over other options like stocks, which were preferred by 31 percent.
The study further identified regional differences in buying patterns. In southern India, homebuyers are more inclined towards residential plots, whereas in the northern and western parts of the country, particularly in Delhi-NCR and the Mumbai Metropolitan Region (MMR), apartments remain the preferred choice, with 70 percent of buyers in these areas leaning towards apartments, around one third homebuyers in Chennai, Bengaluru and Hyderabad prefer buying residential plots. Additionally, the research revealed that most people buy properties for use rather than as investments. However, for those who do invest, rental income is the primary motivation, with 57 percent of investors seeking properties for rental returns, compared to just 20 percent who buy with the intention of selling after appreciating in value.
The demand for more expensive homes has also increased, with homes priced between Rs 90 lakh and Rs 1.5 crore gaining significant traction, rising from 18 percent of preferences pre-Covid to 28 percent in 2024. Despite the rising prices, larger homes, particularly 3BHKs, have become more popular, with 51 percent of respondents favouring them over smaller units.
The research also highlighted dissatisfaction among homebuyers, with 53 percent expressing disappointment with the current affordable housing options, citing issues like poor location accessibility, cramped spaces, and subpar construction quality.
Moreover, high home loan interest rates, which have crossed the 9 percent mark, are acting as a major deterrent for potential buyers, impacting the home-buying decisions of over 87 percent of respondents. The study emphasised that homebuyers are also placing significant importance on the quality of construction and ventilation, with 93 percent of respondents prioritising construction quality and 72 percent seeking well-ventilated homes.