A Realty Check on 2014
While 2013 Was Somewhat Sluggish,
Experts Are Hoping That Buying Sentiments Will Revive In 2014
A FRESH START: The real estate market will hopefully pick up in the coming year with a section of buyers expecting prices to fall..
NEW HOME IN 2014
Our study shows that majority of home buyers want to purchase a property in 2014 for self use as they are currently staying on rent or wants to purchase new home. An almost equal number of home buyers want to buy property to meet the growing family requirements and for long term investment. The analysis show that the year 2014 may experience a very positive shift from the earlier years. As the property transactions have fallen over the past 12 months, speculators and investors are finding it difficult to exit the market.
WHAT BUYERS ARE HOPING FOR...
Property prices have remained
stable over the past few months and the mood of the market suggests a continuation of this trend. According to the survey conducted by an online real estate service provider firm; it was established that 26 per cent of home-buyers feel that the residential property prices would remain stable over the course of 2014. Around 46 per cent of buyers expect the prices to go up from the current level with majority of them expecting an appreciation of 10 per cent.
This should bring some relief to
the buyers in 2014 as generally more
than 10 per cent appreciation is
expected on a yearly basis. Twenty eight per
cent of buyers are advocating for the prices to go down from the current level while 17 per cent of them are expecting a drop of over 10 per cent.
HOME BUYER'S BUDGET
There has been talk of a slowdown
in the Indian economy with all economic indicators showing a negative trend. This however has not harmed the spirit of the Indian home buyer Budget for buying a property in
2014 will not be affected by the
slowdown. This reinforces the confidence of the home buyer in real estate as an asset class. Recent real estate market study says that there are 23 per cent of buyers who have reduced their budget allocation while there are another 19
per cent who are ready to wish out more money for property buying. Having a home is a dream of all Indians since ages; it is treated as a sign of social status and financial
stability. Properties in the range of Z40 lakhs would be an affordable housing for maximum home buyers, almost 60 percent home buyers choose this.
LOCATION AND PRICE FACTOR
Location will be the top most purchase consideration for home buyer in 2014. The preference for location is even higher than price that was the biggest influencer for property purchase over the last few years. This
is an important shift in behaviour of
the home buyer Other factors that will influence the purchase decision are price (24 per cent) and connectivity (18 per cent). Around 13 per cent of home buyers will give higher importance to neighbourhood and proximity of the property to hospitals, schools and offices as revealed in one of the survey conducted by a research company.
(This article is contributed by Brijesh Parnami, CEO-Distribution at Destimoney Enterprises Private Limited)
THE MAIN HURDLE
The observable fact of exponential jump in property prices has been prevailing in the Indian real estate market from the last four years; however it is for the first time that the high property prices has been identified as the single biggest obstacle in buying property in 2014. With more than half of the homebuyers considering high property prices as a barrier, it can be inferred that most of them are unable to justify or afford the high prices being asked from them.
(This article is contributed by Brijesh Parnami, CEO-Distribution at Destimoney Enterprises Private Limited)
Source :- Mid-day Property
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