Buyers Hold Their Breath: Waiting for Election Results Despite Positive Sentiments
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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