Real Estate market on its way to recovery: Survey
Makaan.com, an online portal devoted to real estate, has conducted a national survey called 'The Real Picture'. Through the survey, the portal strives to gauge the real scenario prevailing in the Indian Real Estate market, a sector which saw a serious meltdown in the last 9 months.
Both property seekers and builders were affected by the global economic slowdown. While the builders were unable to raise capital for their projects, property buyers on the other hand were deferring purchases due to job uncertainty and doubts about the future prospects.
The survey reveals how the real estate sector is now reacting to the recovery in the economy. And, also whether, the skepticism to buy a new home was actually a result of the slowdown or was it just a panic wave created by it.
The survey throws the following key findings:
*Brokers/ realtors are upbeat about recovery of the realty sector: An overwhelming, 79% national respondents feel that the sector has revived in the last 3 months. This scenario is echoed in both Metro as well as the Non Metro cities, as the majority of respondents agreed to the trend.
*Affordable housing has emerged as the need of the hour : 66% of the respondents confirm that majority of homebuyers in the present times want to buy property in the sub 40 lacs segment.
Respondents in Metros too feel same; 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.
*A ready to move in home is the current flavor: With builders not able to deliver projects within the stipulated time, property seekers are taking a rather cautious approach and prefer investing in ready to move in apartments.
54% of the respondents, nationally, believe that maximum demand, amongst property options, is for Ready to move in apartments.
*Budget and Location: Top items on the checklist while choosing a house: When it comes to narrowing down on a property search, buyers give maximum importance to budget followed by location.
42% of the respondents across the country agree that property seekers want a house that falls under their desired budget. Another 40% feel that for a seeker in these times, location is the next important factor.
*Some months is all it takes to close a deal: Some months back, when the global recession was at its peak, property seekers were mulling over or delaying their property purchase decision, therefore resulting in no or very less transactions. Now, when the market has improved, 59% respondents confirm that the deal finalisation time for a property transaction is reduced to 3 months.
*Demand for rental increases in comparison to buying properties: A good 46% of respondents have experienced an increase in demand for rented accommodations as compared to buying. On the contrary, 30% disagree to the change in trend and believe that the demand for buying properties is still overriding.
*2BHK is the most ideal size of a house: When it comes to the dimension of the house, 57% of the national respondents agree and confirm that maximum demand is for houses is for 2BHK homes.
*This is the best time to buy a property - confirms the broker community: 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, 49% of the respondents feel that the realty prices are now steady and this is an ideal time to invest in real estate. Agreeing to the trend, another 34% confirm that this is a good time to buy, but, because the prices are expected to rise in the coming time.
Makaan.com conducted the study in leading Metros and Tier II cities of India, which was carried on the portal between 11th August 2009 - 20th August 2009 and saw participation from over 3200 brokers / realtors, spread across the nation.
Maximum respondents who participated in the survey belonged to the age group of 26 - 35 years.