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Affordable housing has emerged as the need of the hour |
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| Realtors across the country are experiencing a higher percentage of demand in the sub 40 lacs segment. |
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66% of the respondents confirm that majority of homebuyers today want to buy houses in this segment. |
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On the same hand, 26% survey takers are receiving enquiries for houses within 40 lacs to 75 lacs. |
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Luxury housing segment continues to have scarce demand; only 8% feel that there is demand in this category. |
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| In the past we have seen developers concentrating on high-end luxury segment, which has limited demand. To meet this mismatch and increase sales, builders today are either restructuring their existing schemes or are introducing more and more projects in the affordable segment. |
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| Demand for various price brackets - Metros V/S Non Metros |
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| Table 2 |
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| < 40 Lacs |
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| 40 L - 75 L |
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| > 75 L |
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| Source: Makaan.com |
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| Metros |
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Respondents in , , and feel that maximum demand for property is in under 40 Lac segment, however there also exists a sizeable demand for the mid segment (40 lac - 75 lac). The luxury segment (> 75 lacs) continues to have fewer takers. |
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Amongst all Metros with 75%, has the highest demand for affordable homes. , and follow the city with 65%, 53% and 52% demand in the segment, respectively. |
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Due to the prevailing mismatch between demand and supply in the lower price brackets, the metro cities continue to have a significant proportion of requirement in the mid segment (40 lacs to 75 lacs). Demand for houses in this category is the highest in (40%), followed by 30% in , 29% in and 21% in . |
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When we talk of luxury housing, with 17%, has the maximum demand in this bracket. This is followed by 8% in , 4% in and 6% in . |
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| Non-Metros |
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The trend is similar in Non Metro cities of , , and , as Respondents here are receiving majority of enquiries for homes under < 40 lacs. The demand for properties in the mid segment is limited and almost zero for the luxury-housing category. |
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Amongst Tier II cities, and with 87% each, have the highest demand for affordable housing segment. |
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and follow this with 83% and 82% demand respectively. |
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A ready to move in home: Current flavor of the realty sector |
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| With builders not able to deliver projects within the stipulated time, property seekers today are taking a more cautious approach and prefer investing in ready to move in apartments. |
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54% of the respondents, nationally, believe that maximum demand, amongst property options, is for Ready to move in apartments. |
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The Resale (old) apartments have just 17% takers. |
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New Residential complexes constitute only 11% of the total demand. |
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At the bottom of the pyramid are Plots and under construction apartments with demand of 9% each. |
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Budget and Location: Top items on the checklist while choosing a house |
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| When it comes to narrowing down on a property search, buyers give maximum importance to budget followed by location. |
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42% of the respondents across the country agree that property seekers want a house that falls under their desired budget. |
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Another 40% feel that for today's seeker location is the next most important factor. |
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10% believe that future appreciation value of a house affects a house buying decision. |
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8% give importance to proximity to amenities, Interiors and other add-on facilities. |
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Buying a house is once in a lifetime decision for an Indian, therefore the first preference for a buyer is the budget on the basis of which he repays his home loan. The second key factor is the location, which is dominated by the distance from work place, children's school and other amenities. If these prime criteria's are met, a property seeker is ready to overlook other benefits like interiors of a house. |
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| Top items on a checklist: For Property options |
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| Table 3 |
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| Budget |
43% |
44% |
36% |
42% |
50% |
35% |
59% |
33% |
| Location |
34% |
45% |
48% |
39% |
36% |
47% |
31% |
43% |
Future
appreciation |
14% |
7% |
9% |
3% |
10% |
12% |
6% |
10% |
| Interiors |
2% |
1% |
0% |
3% |
0% |
0% |
0% |
4% |
| Amenities |
7% |
3% |
7% |
13% |
4% |
6% |
4% |
10% |
| Source: Makaan.com |
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Metro or a Non Metro, Budget and Location are the major drivers when it comes to a house buying decision. Other factors like future appreciation value; Amenities and Interiors are secondary in the current scenario. |
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For Property buyers in , , and , a house within the desired budget is most vital. |
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In cities of , , and , location is a more important aspect when it comes to choosing a house. |
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3 months is all that it takes to close a deal- says respondents across Indian cities |
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| Some months back, when recession was at its peak, property seekers were mulling over or delaying their property purchase decision, therefore resulting in no or very less transactions. |
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| Today when the market has improved, majority of respondents confirm that the deal finalization time for a genuine property transaction is 3 months. |
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59% respondents confirm, that in the current market scenario it takes 3 months time for an ideal transaction to close. |
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31% say that it may take from a period of 3 to 6 months for the transaction to be completed. |
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10 % opt for the 6 - 1-year (+) bracket of time taken to close the agreement. |
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Demand for rental increases in comparison to buying |
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| Majority of respondents agree that the demamd for rentals has gone up as compared to buying properties, in the last few months. |
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A good 46% of respondents have experienced an increase in demand for rented accommodations as compared to buying. |
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30% disagree to the change in trend and believe that the demand for buying properties is still overriding. |
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And quite interestingly 24% feel that there is no perceptible change as compare to prior times. |
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City wise Scenario for Rental demand |
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| Table 4 |
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| Yes |
52% |
48% |
45% |
45% |
26% |
24% |
54% |
30% |
| No |
23% |
34% |
32% |
32% |
48% |
29% |
30% |
47% |
| No Significant Change |
25% |
18% |
23% |
23% |
26% |
47% |
16% |
23% |
| Source: Makaan.com |
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| Metros |
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Respondents from Metro cities, have experienced a rise in demand for rental homes as compared to buying. In 52% respondents have experienced this, which is the highest amongst all other Metros |
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This trend is higher in metros on account of the fact that ready to move in stock in the affordable housing segment is limited or non-existing. Seekers have no option but to stay on rent till the affordable housing supply becomes available. |
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| Non-Metros |
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Except for , the trend is different when it comes to Non Metro cities; respondents from these cities have not seen any significant change in the demand for rentals as compared to buying. For them the buying category is still dominant. |
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2BHK is the most ideal size of a house today |
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| When it comes to the dimension of the house, for today's property seeker, 2BHK is the most preferred option. |
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57% of the national respondents agree and confirm that maximum demand is for houses in this particular category. |
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28% believe that there is significant demand for 3BHK houses. |
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Smaller houses (1BHK) have even lesser takers; only 13% respondents are seeing demand in this segment. |
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This is the best time to buy a property - confirms the broker community |
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| In anticipation of correction in real estate prices, property seekers were applying the wait and watch approach. They were holding back their property purchases in a hope that realty prices will fall further. Today, majority feels that property prices have stabilized and this is the best time to buy.
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49% of the respondents feel that the realty prices are now steady and this is an ideal time to invest in real estate. |
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Agreeing to the trend, 34% confirm that this is a good time to buy, but, because the prices are expected to rise in the coming time. |
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On the contrary, 9% suggest a further wait, as real estate prices are likely to fall. |
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Another 8% are not sure. |
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| It is advisable for property seekers to buy a property now, not just because the real estate prices have fallen, but also because there are enough options available in the popular budget category. This is also the best time to negotiate and strike a good deal, as developers are ready to sell their piled up inventories. |
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