India has emerged as the most optimistic housing market in the world, as Indian home-buyers are upbeat about the country's economy as well as their personal finances, says a study by a global mortgage insurer.
According to a survey by mortgage insurer Genworth Financial Inc, 64 per cent of surveyed respondents in India felt positive about the outlook for their national economy over the next 12 months compared to just 30 per cent across all surveyed countries.
Respondents in India, Mexico, Canada and Australia were the most positive about their countries' economies, while the US, Ireland, the UK were least confident, the study said.
Explaining the factors behind the high optimism of Indian and Mexican home-buyers the study said cultural factors have a large affect on home-buyers.
Potential home-buyers in India and Mexico save by living with their parents and extended family.
Over 80 per cent of potential home-buyers in these countries were living with at least one other generation, and over 30 per cent were living with at least two other generations, the study said.
By living at home, potential home-buyers are able to reduce their living expenses, unlike in countries like Canada, the US and
Meanwhile, the study, which covered over 9,000 potential homeowners in the US, UK, Canada, India, Ireland, Italy, Mexico and Australia, also noted that housing affordability concerns compounded by rising interest rates are worrying potential home-buyers in India more than in any other country.
Besides, rapid urbanisation has driven up property prices in tier I cities, forcing large number of companies and individuals to tier II as well as tier III cities.
Rapid growth in affluence along with shortage in housing supply would lead to high property prices across major urban centres in India and are likely to keep home ownership out of reach for many Indians.
"A large majority of non-property owners did not believe they would be financially capable of buying their first home for another five years," the study said.
With housing shortage estimated at 25 million units and 0.5 million units added every year, getting onto the property ladder is going to be increasingly difficult for lower income Indian home-buyers.
The study further said that "over the last 40 years, the average age of home-buyers has been rising in all countries except for India, as housing has become increasingly unaffordable."
