65% Indians looking to buy a home in 2024: NoBroker Annual Report 2023

The contributing factors include narrowing the gap between rents and EMIs, increase in affordability and security of owning a home

As the gap between rents and equated monthly instalments (EMIs) continues to narrow, sixty-five per cent of Indians are willing to buy a home in 2024, the annual report released by real estate property website NoBroker on Monday showed. It added that the increase in affordability and security of owning a physical asset is also among the other contributing factors.

The report, which is based on a survey of 32,000 Indians, said that the biggest factor in buying homes is the rise in rent. Forty-one per cent of the surveyed said that it now makes more sense to buy rather than to rent a property.

Findings of the report showed that the rise in rent, at 24 per cent, has been the steepest in Bengaluru followed by 18 per cent in Chennai and 16 per cent in Hyderabad. In Delhi NCR, the rent has risen by 15 per cent and 14 per cent in Mumbai.

The second most important factor for people to choose to buy a home is affordability. Twenty-seven per cent of the surveyed Indians said that they want to buy a home simply because they can. Another 23 per cent said that they want to get the security of owning a physical asset. Nine per cent said that they want to buy a home because they are getting married.

The report also showed that 56 per cent of the surveyed landlords have increased the rents of their properties. The highest among these, 35 per cent, have raised the rent in the range of 10-20 per cent. Thirty-three per cent have raised the rent by 20-30 per cent and 28 per cent by less than 10 per cent. The remaining 4 per cent have hiked the rent by 30 per cent and above.

Moreover, homes are easier to rent out today and 86 per cent of landlords are looking to buy a second property as an avenue for investment.

The report further highlighted that real estate continues to be the most preferred option for investment in India. As compared to 71 per cent in 2022, 74 per cent of Indians at the end of 2023 believe that real estate is better than any other form of investment.

Thirteen per cent said they believe gold is the best option, and 12 per cent put their faith in stocks and systematic investment plans (SIPs). Another 1 per cent of Indians prefer Bitcoin over anything else.

ALSO READ: Registration of properties in Pune up 7% in Nov amid higher demand: Report

"It (real estate) has demonstrated a track record of consistent growth over the past few decades and, time and again, has proven to be the best investment option. It is a safe investment option that appreciates over time and ensures good returns while also enabling tax savings," the report said.