MUMBAI: Declining borrowing costs, improving employment outlook and availability of affordable housing projects are encouraging prospective home buyers to purchase new properties in 2015, a survey has said.
According to a report by ZyFin Research titled 'New Home Purchase Sentiment Index', the regulatory changes including the recent Cabinet approval to the Real Estate Bill (Regulation and Development) are also expected to boost home buyers' sentiment further.
The macro-analytics firm said the sentiment is gradually becoming conducive for home buyers this year compared to 2014.
There has been a significant rise in sentiment as the index stands at 43.9 in June this year compared with 30.7 in the same period in 2014.
"A large section of the consumers polled felt they expect borrowing costs to decline further making it easier to avail home loans," the firm said in its report.
The index is a monthly barometer of Indian consumers' willingness to purchase a home within a year, which is based on a poll of 3,000 consumers in 11 cities of different sizes across India.
"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," ZyFin Research Chief Economist Debopam Chaudhuri said.
He further said 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.
"Also, as perceived economic outlook improves, consumers feel optimistic about their levels of job security and household income. There is an indication that a rising number of consumers would be keen to invest in residential properties subject to availability of affordable housing projects and cheap loans," Chaudhari added.