Residential Market Set for Massive Expansion by 2029

India’s economic growth is significantly boosting the real estate sector, with the residential market projected to grow at an impressive rate of 25.6% annually. Experts anticipate it will reach a staggering $1.04 trillion by 2029. However, rising home loan rates could pose challenges for prospective buyers.

Home Loan Rates: A Major Concern for Buyers

According to the FICCI and ANAROCK “Homebuyer Sentiment Survey,” nearly 90% of respondents indicated that home loan interest rates exceeding 9% could dampen their purchasing intentions. The survey also revealed that over 71% believe stable rates below 8.5% would not deter them from making a purchase. Conversely, 54% expressed that rates between 8.5% and 9% would force them to reconsider their options.

Timely Project Completion: A Key Priority

A striking 98% of homebuyers prioritize the timely completion of projects. Additionally, 93% seek high construction quality, while 72% prefer homes that are well-ventilated.

Real Estate: The Preferred Investment Avenue

For over 59% of respondents, real estate remains the favored investment choice. More than 67% are interested in purchasing homes for personal use, with a significant portion (35%) preferring budgets between 4.5 to 9 million INR. Meanwhile, 28% are considering properties worth up to 15 million INR.

Trust is Crucial for Industry Success

At a recent FICCI event, SEBI Executive Director Pramod Rao emphasized the importance of investor confidence for the long-term success of the industry. He noted that transparency and operational integrity are vital in maintaining this trust.