Consumer sentiment about buying a new home is
currently the strongest in four years, according to ZyFin Research's New Home
Purchase Sentiment Index.
The research firm says that declining borrowing costs, improving employment outlook and higher availability of affordable housing projects are encouraging prospective home buyers to purchase a new home in 2015.
The research firm says that declining borrowing costs, improving employment outlook and higher availability of affordable housing projects are encouraging prospective home buyers to purchase a new home in 2015.
"Regulatory changes like recent Cabinet
approval to the Real Estate Bill (Regulation and Development) are expected to
boost home buyers' sentiment further," it said.
According to respondents, mostly middle-class urban Indian consumers, who were polled by ZyFin Research, buying a home is gradually becoming more conducive compared to a year back. "A large section of consumers polled felt they expect borrowing costs to decline further making it easier to avail home loans," ZyFin Research said.
According to respondents, mostly middle-class urban Indian consumers, who were polled by ZyFin Research, buying a home is gradually becoming more conducive compared to a year back. "A large section of consumers polled felt they expect borrowing costs to decline further making it easier to avail home loans," ZyFin Research said.
Capturing the improvement in sentiment, ZyFin
Research's New Home Purchase Sentiment Index, stood at its highest level since
inception in October 2011 in June 2015 at 43.9 in June 2015. It was at 30.7 in
June 2014. The index is based on a monthly poll of 3,000 consumers in 11 cities
of different sizes across India.
"Boosting aggregate demand remains the key
to help an economy out of a slowdown. The recent steps taken by lending
agencies to curtail lending rates taking a cue from RBI's interest rate outlook
would go a long way in convincing consumers to start opening their purse
strings and help generate demand for new homes. Protection of consumer
interests, promotion of fair play in real estate transactions and ensuring
timely execution of projects have been some of the long pending demands of Indian
home buyers," said Debopam Chaudhuri, chief economist at ZyFin Research.
In June 2015, the index level was the highest in
South India at 48.9 while West India had the lowest level of 40.5. Among
cities, Hyderabad had the highest index level of 74.3 while Ahmedabad ranked
the lowest with an index level of 11.1.
SOURCE: THE ECONOMIC TIMES
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