Home buyers' expectations and developers' offerings during the festive season:
Festive Realty 2013 by Makaan.com
Dynamics of Indian Real Estate market reaches its apex during this time of the year as the nation prepares for the festive season. The season commences with Ganesh Chatruthi followed by Navratri, Durga Puja, Dussehera and reaches its peak around the festival of lights – Diwali. The property market in India witnesses higher property transactions during the festive season that concludes with Christmas & New Year.
Makaan.com
has conducted a comprehensive research and analysis to gauge the
collective expectations and offerings within the real estate industry.
The analytical research covers both: the buyers and sellers side
expectation and tries to identify the common points and gaps. To achieve
this, the research was conducted among the home buyers and developers /
builders. The research was conducted in Tier I and Tier II cities of
India and saw a major participation.
Home buyers’ expectations this festive season
The overall mood among home buyers is upbeat with majority of them
optimistic about purchasing a property during the next 100 days of
festive season. 68% home buyers are also looking forward to plenty of
new property launches during the festive season. The desire to finalise a
property seems to be more intense this year as the buyers are looking
forward to support from the developers.
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The prime reason for this enthusiasm among home buyers is rooted in the expectation of schemes and freebies from the developers during the festive season. A very high percentage of respondents (almost 80) are expecting the developers to offer cash discounts of more than 5% of the home value and another 12% are looking forward to a discount in the range of 2-5%. It seems that the cash discount on the property value will be crucial for the home buyers’ final decision.
Similarly, out of the various freebies, the most popular and accepted option among buyers is ‘paying 20% at the time of booking and no EMI for next 12-18 months’. It seems people are unwilling to commit huge sum upfront and any freebie that helps them achieve this is bound to become the flavor of the season. The second most popular scheme among the home-buyers is “pay 40% at the time of booking and balance on possession”. Other popular schemes are free car parking and club membership with the purchase of a property.
When it comes to the budget, 75% of
homebuyers are looking to invest in affordable
housing (under 40 lakhs)
and 21% are looking for mid segment housing (40-100 lakhs); however, a
negligible number of people are looking for high end (2%) & luxury
homes (2%) with budget of 100-200 lakhs and above 200 lakhs
respectively.
The mood among developers / builders
Looking at economic condition of the country, developers are taking a
conscious approach this festive season; however, they do not want to
disappoint the buyers and lose out on an opportunity to revive their
sales. A good number of developers are planning at launching between 1
to 5 projects during the festive season. Another 27% are more upbeat and
are considering 5-10 new launches to capitalize on the festive season.
The number of launches this year is likely to be lower than previous
year (based on Festive Realty research by Makaan.com for 2012).
It seems the developers understand the cash situation of home buyers as most of the developers are launching projects in the affordable housing and mid-segment section. However, the number of launches in the affordable segment is 50% whereas the appetite among home buyers for this segment is 75%. This ensures good absorption of these projects. Out of the new launches 7% and 6% are likely in high end & luxury homes with budget of 100-200 lakhs and above 200 lakhs respectively. These launches are more than the current appetite among buyers.
While majority of the developers have made up their mind to offer discounts and freebies to attract home buyers, the quantum of discount varies from developer to developers. It is good news for the home buyers that nearly 29% developers are considering to offer more than 5% cash discount. While another 21% developers are willing to offer 2-5% discounts.
Moreover, according to many developers this festive season, the
home buyers can expect freebies like ‘paying 40% at the time of booking
and balance on possession’ and ‘pay 20% at the time of booking and no
EMI f or next 12-18 months’. This is mainly because the developers feel
that the main point of attraction for the buyers will be in whichever
situation they can hold onto their money now and pay later.
by Makaan.com Research Team
by Makaan.com Research Team
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