Among EMs, India Sees Least Interest in Buying Real Estate

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In the brilliant Credit Suisse Emerging Market Survey 2014, a question was asked (among others) to people in emerging markets, about whether they would buy property in the next two years. The answer breakdown was astonishing.

India seems to have the least “interest” in buying real estate in the near future!


Mexico, Brazil, China and Russia all seem to have a good amount of interest in real estate, especially at the higher income levels. Russia sees interest only in the higher income brackets.

In India less than 20% of respondents at any level said yes, including those earning more than 50K a month.

People say things very differently from what they actually do, and the people spoken to are only in some big cities (and less than 3,000 of them) so we might be seeing a sample error in generalizing.

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  1. May be it has dawned upon a lot of Indians that economically it’s just not possible to afford housing purchases at current prices and income levels.

    From what I know, a good 2 or 3bhk apartment goes for 60-70L in Bangalore.
    Even at incomes of 1L per month, it’s tough to afford a decent house in city limits.
    And with job insecurities, who will pay emis if axed?
    You also can’t save a thing for retirement etc. in case you somehow brave yourself to buy a house.

  2. Shenoy, Thanks for posting this, it is informative. Overall I agree with you that the Indian RE market needs a correction. But some of the data in this survey looks spurious. For example, they ask “Do you or your family live in your own property?”. There is a column “would prefer to answer”, However the numbers in that column say that 76% of these people say “Yes” and 24% say “No” to this question. Not sure how this works. Further their income ranges look unrealistic – they slice and dice people into 7 segments for monthly income below 50000INR. And everybody earning more is clubbed into the >50000 piece. This makes no sense in Urban India. Further, 15% of people with income 5-7.5k, sampled here plan to buy a house. Really? How do they plan to buy property with that monthly income. I am sure there are other pieces of data that can be questioned.

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