Homebuyers
optimistic to buy a house in this festive season:-
Dynamics of Indian real estate market reaches
its apex during this time of the year as the nation prepares for the festive
season. The season commences with Ganesh Chatruthi followed by Navratri, Durga
Puja, Dussehera and reaches its peak around the festival of lights Diwali. The
property market in India witnesses higher property transactions during the
festive season that concludes with Christmas & New Year.
“Makaan.com” has conducted a comprehensive
research and analysis to gauge the collective expectations and offerings within
the real estate industry. The analytical research covers both: the buyers and
sellers side expectation and tries to identify the common points and gaps. To
achieve this, the research was conducted among the home buyers and developers /
builders. The research was conducted in Tier I and Tier II cities of India and
saw a major participation.
Home
buyers expectations this festive season:- (As per research done by makaan.com)
·
The overall mood among home
buyers is upbeat with majority of them optimistic about purchasing a property
during the next 100 days of festive season. 68% home buyers are also looking
forward to plenty of new property launches during the festive season. The
desire to finalize a property seems to be more intense this year as the buyers
are looking forward to support from the developers.
·
The prime reason for this
enthusiasm among home buyers is rooted in the expectation of schemes and
freebies from the developers during the festive season. A very high percentage
of respondents (almost 80) are expecting the developers to offer cash discounts
of more than 5% of the home value and another 12% are looking forward to a
discount in the range of 2-5%. It seems that the cash discount on the property
value will be crucial for the home buyers’ final decision.
·
Similarly, out of the
various freebies, the most popular and accepted option among buyers is ‘paying
20% at the time of booking and no EMI for next 24-36months’. It seems people
are unwilling to commit huge sum upfront and any freebie that helps them
achieve this is bound to become the flavor of the season. The second most
popular scheme among the homebuyers is “pay 25-40% at the time of booking and
balance on possession”. Other popular schemes are free car parking and club membership with the purchase of a property.
·
When it comes to the budget,
75% of homebuyers are looking to invest in affordable housing (under 40 lakhs)
and 21% are looking for mid segment housing (40-100 lakhs); however, a
negligible number of people are looking for high end (2%) & luxury homes
(2%) with budget of 100-200 lakhs and above 200 lakhs respectively.
The
mood among developers & builders:-
·
Looking at economic
condition of the country, developers are taking a conscious approach this
festive season; however, they do not want to disappoint the buyers and lose out
on an opportunity to revive their sales. A good number of developers are
planning at launching between 1 to 5 projects during the festive season.
·
It seems the developers
understand the cash situation of home buyers as most of the developers are
launching projects in the affordable housing and mid-segment section. However,
the number of launches in the affordable segment is 50% whereas the appetite
among home buyers for this segment is 75%.
·
This ensures good absorption
of these projects. Out of the new launches 7% and 6% are likely in high end
& luxury homes with budget of 100-200 lakhs and above 200 lakhs
respectively. These launches are more than the current appetite among buyers.
·
While majority of the
developers have made up their mind to offer discounts and freebies to attract
home buyers, the quantum of discount varies from developer to developers. It is
good news for the homebuyers that nearly 29% developers are considering to
offer more than 5% cash discount. While another 21% developers are willing to
offer 2-5% discounts.
·
Moreover, according to many
developers this festive season, the homebuyers can expect freebies like ‘paying
40% at the time of booking and balance on possession’ and ‘pay 20% at the time
of booking and no EMI for next 12-18 months’. This is mainly because the
developers feel that the main point of attraction for the buyers will be in
whichever situation they can hold onto their money now and pay later.
