61% of mid income homebuyers feel prices to rise in next 1yr: Survey

Over 60 per cent of middle-income homebuyers in India expect prices of their primary residences to rise in the next 12 months, according to a survey by Knight Frank.

Around 30 per cent of respondents in the survey expect rates to rise up to 9 per cent, while 25 per cent hope prices to rise by 10- 19 per cent and 6 per cent feel rates to appreciate by more than 20 per cent.

The consultant on Wednesday released the Global Buyer Survey that analysed the impact of the COVID-19 pandemic on residential buyers' attitudes to purchasing homes around the world.

Knight Frank also conducted a two-part primary survey for India, having a total sample size of more than 550 people.

The first part of the survey comprised respondents in the high-end income segment, referred to as the 'Global Indian Segment' while the second part gauged buyer sentiment in the mid-end income segment referred to as the 'Mainstream Indian Segment'.

In the Indian edition of the survey, 26 per cent of mainstream Indians had moved their residences within the pandemic period.

"These relocations were motivated by factors like wanting more open space and proximity to friends and family," it said.

For Indian mainstream non-movers, 32 per cent were more inclined to move residences in the next 12 months.

An overwhelming 87 per cent of the respondents who desire to move homes in the next year, favoured the suburban neighbourhood of their current city of residence, while 13 per cent of respondents who want to relocate, may consider an alternate city.

On price outlook, the report said that 64 per cent of the 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 higher-income segment, 32 per cent expect prices to rise.

"Reflecting a more optimistic outlook, 61 per cent of respondents in the mainstream Indian segment expect prices of their primary residences to rise in the next 12 months," Knight Frank said.

Among other findings, 32 per cent of the respondents from the mainstream Indian segment expressed willingness to move into a new home in the next 12 months as a result of the pandemic, whereas 14 per cent from the Global Indian segment indicated a desire for relocation.

The report emphasised that the future of work would play a significant part not only for the commercial sector but also for the residential.

More than half of the respondents in the Mainstream Indian segment expect to be back in the office for the entire workweek once all restrictions are lifted.

As much as 47 per cent of the Global Indian segment respondents expect to continue working for 2-4 days in a week from the office once all restrictions are lifted.

In the mainstream Indian segment, the highest inclination towards five days of work from the office was shown by professionals such as lawyers, architects, doctors, chartered accountants etc.

In the case of the salaried class segment, the preference for work from the office ranged from 3 to 5 days.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, The pandemic has changed the outlook towards ownership of homes."

"Our survey confirms that across the spectrum of Indian homebuyers, 32 per cent showed interest in relocating from their pre-pandemic homes."

Apart from the spending propensity and house type that typically govern an Indian home buyer's purchase decision, Baijal said that factors such as access to open green spaces, healthcare and proximity to the workplace have also started playing an important role.

"Energy-efficient homes are also gaining traction as the concept is finding preference amongst home buyers in India," he added.