Urgency to buy a property highest among Delhi NCR, Bangalore and Chennai home buyers
“Homebuyers across the nation are looking for good property options; however, the urgency to purchase a property and the concentration of home buyers varies among various cities”- Says a research conducted by Makaan.com
One of the most important decisions for an Indian is to buy a home. Prior to going with the property search, homebuyers give a thought to the location, connectivity, future appreciation, budget, neighborhood and whether it is the right time for to engage in property purchase. The assertiveness with which a home buyer goes about property search varies from city to city depending on the local dynamics and market sentiments. With the objective to evaluate the sentiments of home buyers, Makaan.com, India’s fastest growing property website, conducted a research in eight key property markets in the months of April and May 2013 among 2032 home buyers in the cities of Delhi/NCR, Mumbai, Bangalore, Pune, Chennai, Kolkata, Ahmedabad and Chandigarh.
Among other things, the top two key findings of the research are:
1. Urgency to buy a property highest among Delhi NCR, Bangalore and Chennai home buyers
The time frame within which homebuyers wish to conclude the desired property transaction varied from city to city. The interesting fact was that the differentiation is not on the basis of Tier 1 and Tier 2 cities but a function of local dynamic and market sentiments. Home buyers in Delhi/ NCR, Bangalore and Chennai can be classified as “Active seekers” as majority of them would prefer to conclude the property deal in less than 3 months. This is the most aggressive time frame when compared to other cities in India. Home buyers in Pune can be categorized as “Moderate seekers” in terms of purchasing a property as their want to conclude the transaction is in 3-6 months.
On the other hand, Mumbai, Kolkata, Chandigarh and Ahmedabad are the cities in which majority of home seekers are of the view that they would want to invest more than 6 months prior to purchasing the property. The urgency to purchase the property in these cities is less as compared to others. The homebuyers in these cities can be classified as “Passive seekers”.
2. City of Mumbai and Delhi NCR account for over 50% of national home buyers
The rise in property prices have been experienced all across the nation. Makaan.com analyzed which cities are having the highest concentration of home buyers across the nation despite the high property prices. Maximum number of home buyers want to invest in a home in Mumbai, closely followed by Delhi/NCR. The home buyers looking for investing in these two metros do not necessarily belong to these areas; around 35% of them have moved from other towns and cities to settle here and are now looking for having their own dwelling place in Mumbai and/or Delhi/NCR.
After Mumbai and Delhi/NCR, the maximum number of home buyers are searching for property in Bangalore.
In Tier 2 cities, majority of home buyers are looking for property in Pune, Chennai and Kolkata. The concentration of home buyers in Ahmedabad and Chandigarh is also significant.
Apart from the key findings, the research also highlighted the following preferences of home buyers in Tier 1 and Tier 2 cities:
• Overall, home seekers have been searching for property for more than 6 months.
• Unavailability of the right deal is the prime reason for delay in purchase decision.
• Most End users are unsure whether it is the right time to invest in real estate.