Are Indian Homebuyers Shrinking Their Budget?
A joint study conducted by Housing.com and Makaan.com recently revealed that homebuyers in major India cities are cutting down the average cost they are willing for property transactions. Data show Chennai, Kolkata, Delhi and Noida are among the Tier-I cities that have been asking for bigger homes at a corrected price.
Industry experts say that rates are already at their lowest. Perhaps, buyers expect a further cut in real estate prices in the backdrop of reforms such as the Real Estate Regulatory Authority (RERA), the Goods and Services Tax (GST), etc.
In Kolkata, for instance, between Jan-Mar 2018, those looking at a property were willing to pay not more than Rs 43.80 lakh for a 1,085-square foot (sqft) home. In 2017, they were up for paying Rs 46.22 lakh for a smaller home with an average size of 1,053 sqft.
Chennai is in the same league. In 2017, the average size demand stood at 1,129 sqft and the average budget of homebuyers was estimated to be Rs 63.81 lakh. One year later, Chennai has been asking for bigger homes with an average size nearing 1,200 sqft at an average budget of Rs 61.40 lakh.
At 900 sqft, Delhi has asked for slightly bigger homes than last year when (886 sqft), but the price Delhiites are willingly to pay is sharply cut by 28 per cent, and stands at Rs 47.30 lakh. In 2017, 886 sq ft-homes were worth Rs 65.50 lakh.
Noida buyers are looking for 1,319 sqft homes on an average which is a 1.1 per cent jump from what the demand was last year. The average budget on the other hand has been reduced by nearly 3 per cent and stands at Rs 47.72 lakh now.
Meanwhile, Bengaluru, Greater Noida, Gurgaon and Mumbai do not mind cutting down on space needs to keep the purchase affordable. Greater Noida which is an affordable bet till now is also looking for further correction.
The only exception to this trend is Hyderabad, Pune and Tier-II cities of India.