House purchases will be affected if interest rate exceeds 9%, $1.04 trillion residential market by 2029: Survey

New Delhi| India’s economic growth is driving rapid expansion in the real estate sector. The residential market is growing at 25.6 per cent every year, which is expected to grow to reach $1.04 trillion by 2029. However, expensive home loans can become a major hindrance in this growth. Nearly 90 per cent of respondents to FICCI and Anarock’s ‘Home Buyer Perception Survey’ survey say that their willingness to buy a house may be affected if the home loan exceeds 9 per cent. The survey claims that more than 71 per cent believe that if interest rates remain below 8.5 per cent, the buying decision will not be affected. With interest rates between 8.5 percent and 9 percent, they will have to consider their choices, said 54 percent.

The priority of about 98 per cent of home buyers is the timely completion of projects. 93 per cent want better construction quality, while 72 per cent of respondents want to buy well ventilated houses.

Real estate is the preferred area of investment for more than 59 per cent of people. More than 67 per cent want to buy a house for their own use. A budget of 45-90 lakhs is the preferred option for more than 35 per cent of buyers. 28 percent want to buy houses worth up to 15 million.

Speaking at the FICCI event, SEBI Executive Director Pramod Rao said, investor confidence is important for the long-term success of the industry. SEBI’s focus on transparency and working methods has been an important factor in maintaining this confidence.