In the past two years, there has been rent increases in seven major cities in India, including Delhi, have increased by as much as 70 percent.
This is due to the fact that homebuyers are increasingly favoring larger apartments and real estate for investment purposes, notably for earnings from rentals.
Major Indian Cities See Up to 70% Rent Increases:
According to a recent analysis by property consultants ANAROCK Group, rents in seven major Indian cities—including Delhi—have jumped by as much as 70 percent over the past two years on rent increases.
Across 14 cities, the study gathered 7,615 participants ranging in age from 24 to 78.
The results revealed a change in purchaser tastes:
52% of Delhi-NCR area buyers chose 3BHK apartments and 38% choose 2BHKs.
With 59 percent of respondents selecting real estate over other asset classes including stocks, which were favored by 31 percent.
The survey also made clear that the most preferred asset class for investment is real estate.
Shifting Trends: Regional Differences in Property Purchases
A third finding of the study was that there are geographical disparities in purchasing patterns.
In the southern region of India, homebuyers are more likely to be interested in purchasing residential plots.
On the other hand, in the northern and western regions of the country, particularly in the Delhi-National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR), apartments continue to be the most popular option.
Over seventy percent of buyers in these regions are inclined to purchase apartments, In Chennai, Bengaluru, and Hyderabad.
Approximately one third of homebuyers prefer to purchase residential plots.
The research also showed that the majority of consumers purchase real estate for their own personal use rather than for the purpose of investing.
On the other hand, the key motive for those who do invest is rental income.
57 percent of investors are looking for properties that will provide rental returns, whereas just 20 percent of buyers want to sell their houses after they have appreciated in value.
From 18 percent of preferences pre-Covid to 28 percent in 2024, the demand for more costly homes has also grown as residences valued between Rs 90 lakh and Rs 1.5 crore becoming very popular.
Larger homes—especially 3BHKs—have proven more popular despite growing prices; 51 percent of respondents chose them over smaller flats.
With 53 percent of homebuyers expressing displeasure with the present affordable housing options.
The study also revealed discontent among them due to problems including inadequate location accessibility, limited spaces, and poor building quality.
Furthermore, high home loan interest rates—which have above the 9 percent mark—are a main disincentive for prospective purchasers, therefore influencing the decisions on home purchase of more than 87 percent of respondents.
With 93% of respondents giving building quality top priority and 72% looking for well-ventilated homes, the study underlined how important purchasers find these factors to be.