Despite headwinds in the global economy, homebuyers in Mumbai are eager to invest in property.
As per the House Purchase Sentiment Index (June 2022), a survey report by Credai MCHI and TruBoard Partners to show buyer sentiment towards procuring property highlights that at least 47 per cent of prospective homebuyers in Mumbai Metropolitan Region MMR are optimistic about buying a house.
However, the overall house purchase sentiment has witnessed a dip. CREDAI-MCHI is an apex body consisting of members from the Real Estate Industry in the Mumbai Metropolitan Region (MMR) with a membership of over 1,249 leading developers in Mumbai.
The driving sentiment among prospective buyers is speculation of further interest hikes and other economic factors which could lead to more expensive loans in case of delayed buying decision.
Credai-MCHI’s President, Boman Irani said, “Despite uncertainty globally real estate in India continues to be the prime avenue to safeguard investments as homebuyers in MMR expect home loan rates to rise but will be banking on the stability of the real estate market’s performance over generations. Due to the current stock market fluctuations, physical assets like real estate are much more stable which has enabled salaried individuals to be more likely to invest in a home. Currently, buyers in Thane are more resilient towards planning purchases than the rest of MMR. CREDAI-MCHI is constantly working with the Government for better and evolving policies to help the real estate sector.”
The House Purchase Sentiment Index dipped by 9.5 per cent quarter on quarter in Q1 FY23, but it still depicts optimism with a score of 65.5, above the pessimism threshold of 50. While rising policy rates have dented consumer sentiment compared to previous quarter, 2 out of 3 home buyers surveyed expected prices will rise but also were certain to buy a home in next 3-6 months.