Most Mumbai Homeowners Expect Home Prices to Increase in Next 1 Year
Knight Frank India in their latest survey report cited that 69% of respondents from Mumbai expect the value of their primary residence in the next 12 months. Mumbai leads the chart in the country with 87% of the respondents expressed in favour to pay a premium to purchase a home in a branded residential property. Nearly 35% of the respondents in Mumbai are willing to relocate to another city which quite higher than the ones willing to relocate within the city (13%). Nearly 29% expressed willingness to purchase a second home in the next 12 months. With respect to home price trajectory; 58% of the city respondents expected the price of their current residence to increase by 1% - 9% in the next 12 months. This is a quantum shift towards optimistic sentimental value as 68% of the respondents indicated a decrease in their primary residence since the start of the pandemic. Rajani Sinha, National Director and Chief Economist - Research, Knight Frank India said, “Mumbai witnessed a strong resurgence is sales post the cut in stamp duty announced last year. In terms of prices, Mumbai Metropolitan Region has witnessed a correction of 17% in the last 5 years. The prices are expected to be stable in FY’22 with an upward bias in select locations.” Rohit Poddar, Managing Director, Poddar Housing and Development Ltd shared his perspective, “The pandemic has led to a radical attitudinal shift when it comes to home-buying decisions. The demand for bigger space amongst the mainstream buyers is here to stay and people are happy to explore the peripheries of metro cities for the same. Buyers are preferring townships and projects that are at proximity to social and healthcare amenities. This trend is going to further boost housing demand in central and western suburbs when it comes to Mumbai. On the other hand, the investor class has realized the value of real estate and the financial security it brings along. The rise in NRIs or global Indians investing back in the home country has grown even in the pandemic and is further expected to continue. As a result, the upcoming festive season is expected to see a growth in sales derived from both the buying-classes. This positive sentiment will hopefully continue as we keep taking gradual but steady steps towards normalcy.”
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