Housing sales may get impacted if home loan interest rates breach the 9.5% mark, the CII Anarock Consumer Sentiment Survey – H1 2022 stated. For as many as 93 %of respondents said, there will be a ‘high impact’ on their home buying decision if home loan rates breach the 9.5 % mark. The low home loan rate was one of the key factors driving housing sales across the country since the pandemic – reaching as low as 6.5 %for a limited period. Presently, it is 8 % upwards across most banks. The survey highlights that if rates hover less than 8.5% Housing sales may get impacted if home loan interest rates breach the 9.5 percent mark, the CII Anarock Consumer Sentiment Survey – H1 2022 stated.
For as many as 93 percent of respondents, there will be a ‘High Impact’ on their home buying decision if home loan rates breach the 9.5 % mark. The low home loan rate was one of the key factors driving housing sales across the country since the pandemic – reaching as low as 6.5 % for a limited period. However, the three successive repo rate hikes by the RBI in 2022 (to curb inflation) has increased home loan rates, it said. Presently, it is 8% upwards across most banks. The survey highlights that if rates hover less than 8.5% there will be no impact (for 90% of respondents). Alternately, if rates breach the 9.5 % mark, there will be a high impact on their decision. Additionally, if rates hover between 8.5 % – 9 %, there will be only a ‘moderate impact’ for at least 47 % of respondents.
While 69 percent buy homes for their residential purposes, 31 per cent buy homes for investment purpose. For the first time, the demand increased for 3BHK houses compared to the demand for the 2BHK houses. While 44% of the surveyed voted for the 3BHK houses, 38 per cent of the responded favoured 2BHK houses. It may be recalled that last year only 40 per cent voted for 3BHK houses while 46% opted for 2BHK houses. This time, at least 7% of the surveyed favoured 4 BHK houses as against 2% in the survey conducted prior to Covid-19.
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