Indian Real Estate Market: A Short-Term Hesitation Among Buyers for Election Results
Anil Katariya, Founder & CEO
Shree Katariya & Associates
In the midst of political anticipation, the Indian real estate market continues to demonstrate strength and promise, defying short-term hesitation among buyers and global economic uncertainties. Recent data indicates a robust performance in 2023, with over 2.82 lakh units sold, setting a new benchmark for the industry. Projections hint at sustained growth, with expectations of a 10-15% year-on-year increase, foreseeing sales to surpass 3,00,000 units in the year 2024.
A deeper dive into the market’s dynamics reveals a multifaceted landscape influenced by various factors. Government initiatives, such as the Smart City project, coupled with stable economic indicators, contribute significantly to this upward trajectory. Low unemployment rates, favorable inflation rate and substantial salary hikes further bolster market sentiment, inspiring confidence among investors and buyers alike.
A recent survey conducted by Shree Katariya & Associates sheds light on the prevailing sentiments within the real estate ecosystem. The study underscores the enduring appeal of real estate as an investment asset class, with 58% of respondents expressing a preference for property investment. Moreover, a significant majority 71% view the current period as opportune for property purchasing, citing the importance of homeownership during the pandemic and the expectation of favorable returns.
Optimism spreads throughout the discussions on property prices, with 87% of respondents anticipating further growth. While 69% expect a steady increase, 18% foresee a more moderate rise after Covid-19. These insights not only validate the positive curve of the real estate market but also provide valuable guidance for stakeholders navigating its dynamic landscape.
However, despite the overwhelmingly positive sentiment, a noticeable short term trend of hesitation emerges among potential buyers. A closer examination reveals that 26% of respondents are delaying their property purchase by 2 to 3 months. We approached every single respondent who preferred to buy or invest in real estate after 2 to 3 months to inquire why they are feeling hesitant. The majority of them, more than 68% of the total respondents who hold their decision for 2 to 3 months’ time, said they are waiting for election outcomes, while others are holding their decision for various reasons.
This careful approach arises from the anticipation of potential changes in government policies that could impact buyers. Prospective buyers are seeking more clarity on the government’s stance towards property buyers and its implications for the real estate market. This thoughtful strategy of prospective buyers demonstrates a detailed understanding of how the market works, with buyers eager to make informed decisions based on current social and political factors.
In conclusion, even though the Indian real estate market is strong despite global economic uncertainties, recent data shows robust performance, with expectations of sustained growth in 2024. However, as the nation awaits the outcome of the elections, a trend of short term hesitation among buyers is observed, linked to political anticipation and potential policy changes. It’s crucial for stakeholders to understand market dynamics and make informed decisions to capitalize on opportunities for growth.
Business Research Insights:
· Over 2.82 lakh units sold in the Indian real estate market in 2023.
· Expected year-on-year growth of 10-15%, projecting sales to exceed 3,00,000 units in the year 2024.
· 58% of respondents prefer real estate as an investment asset class.
· 71% view the current period as an ideal time to buy property.
· 87% of respondents expect further growth in property prices.
· 26% of respondents are delaying their property purchase or investment decisions by 2 to 3 months.
· Out of the total respondents who are delaying their decision for 2 to 3 months, 68% said they are waiting for election outcomes.
Website: www.ShreeKatariya.com
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