MUMBAI: Real estate purchase sentiment index has improved by almost 2.5 points to 32.3 in September this year reflecting an improvement in consumer interest after a long period of lull, says a survey.
According to ZyFin Research, the index improved by 2.5 points to 32.5 compared to 29.8 in August, suggesting a recovery in consumer interest after the score bottomed out in April this year.
"This improvement in the overall index signifies that a larger number of Indian consumers are planning to purchase homes within the next 6-12 months," ZyFin Research Chief Economist Debopam Chaudhuri said.
According to the survey of 4,000 consumers in 18 cities across the country representing urban consumers, the improvement was led by stronger confidence levels in the north and south India compared to those in the east and west.
While the index in the north rose to 44.8 in September from 40.2 in the previous month, in the south, the score increased to 40.5 from 36.4.
The index is at its lowest in the east at 20.7, but this is also an improvement over the previous month's score of 19.1. The west registered a score of 27.5 in September, as compared to 26.7 in August.
"Historically, the sentiment index has had a strong correlation with actual sales of homes. With the festive season coinciding with the recovery in sentiment, home sales are expected to be better this season, as compared to 2012 or 2013," Chaudhuri said.
Of the 18 cities surveyed, Delhi, Bengaluru, Hyderabad, Mumbai and Mangalore hold an optimistic outlook on purchasing homes, the survey highlighted.
Of these, Bengaluru and Mumbai have turned optimistic from pessimistic in the current month. While Bengaluru posted a score of 62.5 in September, as compared to 42.5 in August, Mumbai improved to 52.5 from 40.5. The remaining three, Delhi, Hyderabad and Mangalore, have been consistently optimistic on home purchase in recent months, the survey said.
"With rising confidence among consumers towards employment conditions and household income, they are once again showing an inclination to purchase homes. If affordable housing plans are executed in reality, there would be a substantial demand in country's larger cities, as re-iterated by consumers through this index," he added.