Indians investing more in real estate despite inflation

A new survey reports that Indians have been increasingly investing in real estate over the past months despite the burden of inflation.

The survey, conducted by Magicbricks across 11 cities with more than 4,500 respondents in March-April 2024, established the company’s Housing Sentiment Index (HSI). The index shows that the outlook of buyers in the country’s residential real estate sector is upbeat, boosted by better infrastructure and a glut in new real estate projects all over the nation.

Professionals aged 24 to 35 had the highest HSI of 154 across age groups, according to the survey. Homebuyers with yearly earnings of around Rs 10-20 lakh were most inclined to buy a home, with an HSI of 156, and most consumers preferred to buy a home within three years, the survey added.

Research pertaining to the survey indicated that while buyers are ready to invest up to four times their annual income to buy a home, affordable homes had a high HSI of 152. With an overall HSI of 149, the survey also shared data on Indian cities where buying trends were the highest.

Ahmedabad recorded the highest HSI of 163 while Kolkata holds the second spot with 160 HSI. Gurugram with 157 and Hyderabad with 156 are at number three and four respectively.

The survey factored in the significance of growing income among the buying class, stability of economy and government initiatives that reinforce the robustness of the real estate sector.