📲
Homebuyers expecting property prices to fall or remain stable

Homebuyers expecting property prices to fall or remain stable

Homebuyers expecting property prices to fall or remain stable

Indian Real Estate market witnesses prosperity around this time of the year, with the start of the festival of lights – Diwali. The property market in India traditionally witnesses higher property transactions during this time. This dynamicity extends till the end of the festive season that concludes with Christmas & New Year. In the period starting from October to December every year the real estate developers introduce the most attractive offers on their projects, for which property seekers to keep a look out.

A comprehensive study in conducted through a survey by Makaan.com’s research team every year. The survey christened “Festive Reality”, maps the actual trends that will prevail during the festive season. The survey extending to Metros and Tier II cities of India, analyses and highlights the expectations of property seekers from the residential property market.

Festive Reality 2011 was conducted on the website between 10th to 24th October and saw a participation from 4517 property seekers. Majority of respondents who took the survey belong to the age group of 26-35 years.



Indian homebuyers optimistic about property purchase

Indian real estate market has seen a low volume of transactions from November 2010 till October 2011, but that hasn’t dampened the sprit among the home buyers. When we asked our survey takers whether they have made up their mind to book a property this year, a majority of homebuyers seem to say “YES”.

  • Nationally, 52% homebuyers are sure of making a property purchase this year.
  • It’s also interesting to know that 31% are mulling over and are still not decided whether they want to make a high value purchase like property, this year.
  • On the contrary, only 17% seekers do not want to invest in real estate this year.

City wise break up of buyers likely to buy a house this festive season



When compared city wise, majority property seekers across cities seem sure

  • Amongst all cities, Hyderabad tops the charts with 60% buyers looking forward to make a property purchase this festive season. Pune & Delhi follow with 56% and 54% interested seekers respectively.
  • Homebuyers from Bangalore are least sure about buying a house this festive season. 39% homebuyers are unsure about making a property purchase this year.
  • Bangalore also has the maximum homebuyers (20%) who do not want to invest in real estate this year. This is followed by Chennai (19%) & Mumbai (18%)


A comparison with last year

  • Home buyers this year are less confident of property purchase compared with last year. Number of homebuyers saying “YES” to property purchase this year has dropped from 62% in 2010 to 52% in 2011. High property prices and even higher home loan rates are few factors that are responsible for this trend.
  • Percentage of Homebuyers who are not sure of making a property purchase has gone up by 3%.
  • Percentage of Homebuyers who say “NO” to property purchase this festive season has increased by 7% in 2011.

Cash discounts are favourite FREEBIE for home buyers!

Cash Discounts are the favourite freebies among the property seekers as they are easy to evaluate and can directly make a difference to the cost of a property. We asked homebuyers 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, and rebate on EMI etc.

  • Nationally, 50% buyers feel that projects/options tagged with cash discounts, would be their first preference.
  • 20% seekers wish a rebate on EMI and an equal 20% prefer fully furnished homes.
  • For another 7% Parking and Club facilities, is ideal and enough for closing a deal.
  • Only 3% are attracted towards goods like Cars and electronic goods.

City wise break up of preference for freebies this festive season.


  • Among all the cities, seekers from Mumbai and Pune (56% respectively) have shown the maximum inclination towards cash discounts. Followed by Delhi with 47% of seekers.
  • Fully furnished homes on offer seem to be most appealing to homebuyers from Chennai and Bangalore; as 26% from respective cities vote for this freebie.


A comparison with last year





Comparing the trend to that of the last year, the survey reveals that the preferences have remained same

• Homebuyers are investing in real estate during this period of time because of cash discounts. Percentile of home buyers investing in real estate to avail fully furnished homes, Parking facility and Club membership, Cars and other electronic gadgets remain the same.

• Only variation was seen in the percentile of homebuyers choosing rebate on EMIs. There is a drop of 4% in the number of homebuyers investing because of the rebate on EMIs.


Investing in realty during festivity is not just about great offers but is also an auspicious time!

It is difficult to say Indian homebuyers are investing in realty during this time of the year only for availing attractive offers. The survey results reflect that Indian homebuyers still carry along with them some sentiments and a sense of sanctity. Homebuyers feel making a property purchase is ideal in the light of the auspicious occasion.

  • A noteworthy 31% think that they can avail attractive offers around this time.
  • 28% consider the period as auspicious for making a high value purchase like property.
  • 20% of the national seekers feel that investing around the festive season means choosing from multiple property options.
  • 11% are more optimistic, that the property prices will fall.
  • Only 5% confirm that their reason for buying a house around the period is due to availability of cash flow.

City wise break up for seekers considering property buying during the festive period

  • Delhi & Mumbai with 33% & 32% respectively, tops the charts when it comes to seekers who consider buying property because of the cash discounts followed by Pune with 28%.
  • Seekers from Hyderabad consider this time the most auspicious with 33% of the homebuyers feeling strongly for it.
  • A great number of homebuyers from Pune (30%) expect a great number of options to choose from.


A comparison with last year

  • Compared to last year there are only slight variations in the trends. The percentile of homebuyers opting out for attractive offers remains the same.
  • There is a 4% increase in the homebuyers considering it an auspicious while property purchase.
  • Homebuyers expecting the property prices to fall were also more this year. There is a 5% increase in this category. This could be on account of increase in property prices over past one year.
  • There is a 10% decline in the number of seekers expecting various property options to choose from. This year has seen fewer launches during the month of Oct and homebuyers are echoing that trend.


Homebuyers expecting property prices to fall or remain stable

We asked our survey takers to plot the trend in the property prices this festive season the homebuyers were of the opinion that property prices are expected to fall or remain stable.


  • 36% survey takers feel that property prices are likely to stay stable this year.
  • An equal 36% are expecting the property prices to go down.
  • On the other hand 28% property seekers are expecting real estate prices to rise from the existing level.

When compared city wise the data echoes the same trend



  • Majority of property seekers who are expecting realty prices to fall this year are from Mumbai (43%), Hyderabad (40%) and Pune (38%).
  • With 39%, Chennai emerged as the city with maximum respondents expecting property prices to stay steady this year. Bangalore, Pune and Hyderabad follows.
  • Moving against this popular trend is Delhi with 38% believing the property prices to go up.


A comparison with last year

• There is an increase of 3% in number of people who believe that prices will fall.
• There is a rise of 3% even in the number of people who believe prices will rise.


This festive season could change the fate of the Indian real estate sector – feels the Indian Homebuyer

Festive season usually brings cheer to markets, including the property market. With the sector witnessing ups and downs over the last 2 years, we asked our survey takers on how they feel the market is likely to behave this season.

  • 51% property seekers feel that real estate sector is set to have a favorable time.
  • On the other hand, 25% are unsure if the festival season could have any effect on the sector in terms of actual transactions.
  • 24% are of the belief that the period cannot make a significant change and is likely to remain the same.

When compared city wise the data echoes the same trend


  • Majority of property seekers across the country believe that the Indian real estate market will have a favourable time.
  • The figures show an uncertainty prevailing in the minds of the home seekers across the nation with Chennai topping the chart with 36% home buyers uncertain of how the market will behave in the coming days.
  • 33% of Mumbaikars seem to believe real estate market will not be having a great time ahead.

A comparison with last year

• In comparison to last year there is an increase of 10% in the number of seekers believing that the real estate market trends will remain the same or will not get better.
• There is a 4% decrease in the number of seekers believing that the property trends are going to be good in the coming days.


The ever climbing Home loan rates do matter!

With the RBI revising its policies through out the year at regular intervals, the home loan rates have increased considerably. In this context we asked our survey takers whether it makes any impact on the festive period purchases. A stern 68% believed that the increasing rates do matter in their investment.

• Nationally, a whopping 68% hit the option of “yes”. This shows majority of the investors do consider home loans rates seriously while making an investment.
• It did not bother 12%
• Whereas 20% remained uncertain about whether it affects their investment or not.


City wise break up for seekers considering property buying during the festive period



  • Majority of property seekers across the country feel strongly for the increasing home loan rates with Mumbaikars on the lead with 72%.
  • Homebuyers in Chennai seemed to be a little less worrying about the increasing home loan rates.
Last Updated: Mon Oct 31 2011

Similar articles

@@Fri Feb 07 2020 12:07:08