Rising Mortgage Rates: A Tipping Point in Indian Real Estate

A survey by FICCI and Anarock reveals that nearly 90% of potential homebuyers could be deterred from purchasing if mortgage rates exceed 9%. The Indian residential market is mainly driven by self-use buyers, with investment priorities shifting towards under-construction properties, indicating trust in developers and regulation.

In a joint survey by FICCI and Anarock, nearly 90% of prospective homebuyers expressed concern about buying properties if mortgage rates surpass 9%. The survey highlights that home buying decisions remain largely influenced by mortgage rates, with most respondents receiving minimal impact if rates stay below 8.5%.

The Indian real estate market continues to see growth, primarily fueled by end-users, with preferences inclining towards under-construction homes. Executives at a recent FICCI event emphasized the vital role of regulatory frameworks and transparency in nurturing trust and fostered growth in the sector.

Real estate leaders underscored the sector's evolution, driven by economic expansion and institutional investments, particularly in rapidly growing areas and ultra-luxury properties. Sustainability and skilled workforce development were also pinpointed as critical focus areas moving forward.

(With inputs from agencies.)