61% of homebuyers expect prices to rise in one year

Over 60% of middle-income homebuyers in India expect prices of their primary residences to rise in the next 12 months, according to a survey by Knight Frank.

Around 30% of respondents in the survey expect rates to rise up to 9%, while 25% hope prices to rise by 10- 19% and 6% feel rates to appreciate by more than 20%.

The consultant on Wednesday released the Global Buyer Survey that analysed the impact of the COVID-19 pandemic on residential buyers' attitudes to purchasing homes around the world.

Knight Frank also conducted a two-part primary survey for India, having a total sample size of more than 550 people.

The first part of the survey comprised respondents in the high-end income segment, referred to as the 'Global Indian Segment' while the second part gauged buyer sentiment in the mid-end income segment referred to as the 'Mainstream Indian Segment'.

In the Indian edition of the survey, 26% of mainstream Indians had moved their residences within the pandemic period.

"These relocations were motivated by factors like wanting more open space and proximity to friends and family," it said.

For Indian mainstream nonmovers, 32% were more inclined to move residences in the next 12 months.

An overwhelming 87% of the respondents who desire to move homes in the next year, favoured the suburban neighbourhood of their current city of residence, while 13% of respondents who want to relocate, may consider an alternate city.

On price outlook, the report said that 64% of the respondents expect the value of their primary residence to increase in the next 12 months.

In the case of the Global Indian segment, which represents the higher-income segment, 32% expect prices to rise.

"Reflecting a more optimistic outlook, 61% of respondents in the mainstream Indian segment expect prices of their primary residences to rise in the next 12 months," Knight Frank said.