Festive reality shows positive signs
Starting Diwali, the real estate market in India traditionally experiences a surge in both property buying and selling. Around this time, real estate developers introduce the most attractive offers on their projects, for which, property seekers keep a look out.
But considering that last one-year saw property prices undergoing various levels of correction, would developers continue to give these offers this season? What kind of freebies would attract maximum property seekers? Will this year result in higher property transactions and change the fate of Indian real estate sector?
In order to answer all these Questions and gauge the actual trends that will be prevalent this festive season, Makaan.com conducted a national survey for metros and tier II cities of India. Cnristened 'Festive Reality', the study analysed and highlighted expectations of property seekers vis-a-vis what developers have to offer this year.
The survey was conducted on the portal between October 2 and 12 with participation from over 3800 property seekers and 312 leading national developers. Majority of respondents who took the survey belonged to the age group of 26 to 3 5 years.
Buyers and developers in chorus over freebies
With the realty market spurring with activity around the festive period, expectations of homebuyers were compared with what developers had to offer, in terms of freebies. The findings revealed that both seemed to be in sync with each other. According to the survey, a vast majority of national property seekers were looking forward to freebies and developers were more than glad to offer them. The results throw the following findings.
Nationally, a whopping 80% home-buyers were looking forward to attractive offers this year. Singing the same tune, 64% national developers have confirmed that they were introducing perks on their projects. On the contrary, 12% buyers were less optimistic and were not expecting any freebies. On the same hand 25% national realtors were not supplementing their projects with any sucn offers.
When compared city-wise, both, property seekers and developers were echoing the same trend. Amongst all cities, Pune toped the charts with 84% buyers looking forward for attractive offers. Mumbai and Delhi follow the city with 80% and 78% seekers expecting perks, respectively. With 80% each, realtors from Hyderabad and Pune have shown maximum inclination towards offering freebies this year.
Buyer's confident, developers expectant
Last few months, property seekers have been applying the wait and watch approach, but this festive season they looked more confident, as majority were ready for making a property purchase. On the same hand, developers seemed to have sensed this trend and were hoping that property transactions would go up significantly this year. The level was varying from city to city, but one cannot deny tne fact that positive sentiments were back considerably, both amongst seekers and realtors.
Nationalty, 72% seekers confirmed that they were like|y to make a property purchase this season. On the contrary, 28% were either not sure or were not yet ready for a high value purchase like real estate. Developers across cities were expecting a jump in real estate transactions. 59% anticipate the market to boost between five and 20%. Metro or a non-metro, buyers across cities were hopeful of making a real estate purchase this festive season.
Amongst all freebies cash discounts were the most wanted, developers willing to offer. Today, property seekers have become more alert, they prefer perks that were easy to evaluate and can directly make difference to the cost of a property. Homebuyers were asked on what freebies would be most appealing for them and found out that majority wanted to avail cash discounts, far surpassing options like fully furnished homes, cars, electronics, rebate on EMI. Developers were also asked on what kind of freebies would attract maximum property seekers. Majority agreed that in the current scenario, cash discounts were the most lucrative perk a seeker was looking for.
Nationally, 45% buyers feel that projects or options tagged with cash discounts, would be their first preference. On the contrary, 19% were not interested in any kind of freebies, for them other factors like location etc matter more. For 15% parking facility and club membership along with the ideal house, is enough for closing a deal. Another 14% prefered fully furnished homes over any other freebie. Across cities, 59% realtors felt that cash discounts were the perfect freebie and can attract maximum property seekers. Another 13% felt that buyers give a higher preference to property options that were fully furnished.
Keeping in mind the high cost of property acting as a deterrent in sales, developers were leaving no stone unturned to lure seekers. Unlike the previous times, they were offering exactly what the seekers were looking for. In the non-metro category, 68%. seekers from Pune have shown the maximum inclination towards cash discounts. Interestingly, the city also tops the charts (80%) when it comes to realtors offering cash discounts as freebie.
Amongst metro cities, Delhi with 47% has the maximum number of buyers looking forward for cash discounts, this season. Mumbai and Bangalore follow the capital with 45% and 42% buyers respectively. And in the developer category majority (55%) of developers offering the same belong to Bangalore,
As compared to other metro cities, maximum realtors from Mumbai were planning to compliment their projects with home furnishings. While only 11 % seekers from the city were looking for the same. Indian homebuyers can be categorised as 'practically superstitious'. Survey takers were asked on their reason for choosing to buy a house around the festive season and it was found that today's homebuyers were a mixture of realism and mythical belief, while for majority investing during this period means choosing from a plethora of property options, for some it brings good fortune. Thirty-five per cent of the national seekers feel that investing around the festive season means choosing from multiple property options. A noteworthy 32% tnink that this is an auspicious period to make a high value purchase like property. Another 18% were more optimistic, as they look forward to correction in realty prices. With companies offering bonuses, 15% confirm that there reason for buying a house around the period is due to availability of cash flow.
With 41 % each, seekers in Mumbai and Pune have emerged as the most rational across cities. As they believe that buying during festive season helps them in choosing from multiple options. Hyderabad, with 43%, tops the charts wnen it comes to seekers who consider buying property around this time as auspicious. Delhi and Bangalore follow this trend with 39% believers each.
Developers were doling them out on both under construction and new launches. Another attraction this season would be the new launches. Realtors have understood that the real demand lies in the affordable housing category.