2014 can be marked as the year of transformation for India. The whole country wanted a change and elected a new government. Many impact areas such as real estate, the stock markets, fuel and gold prices were buoyed by the positive sentiments in the market. These changes paved way for 2015 which is expected to be the year of recovery.
Some of the major buying trends that can be seen in the real estate industry include high proportion of end users looking for mid segment properties, buyers giving importance to infrastructure, presence of public transport and security before deciding the locality.
To understand the psyche of property buyers and analyse the buying trends of 2014 and outlook for 2015, IndiaProperty.com conducted a Pan India survey in December 2014.
32% of the respondents purchased a property in 2014 and 41% intend to buy a property in 2015. Here are some of the highlights across five major cities in India – Delhi NCR, Mumbai (MMR), Chennai, Bangalore, and Hyderabad.
About 81% buyers in Mumbai and 78% in Hyderabad are looking for a property for end-use. Moreover, over 60% buyers are first time home buyers in both the cities. Delhi NCR (34%) still tops the chart when it comes to buying real estate for investment. Chennai has an equal mix of first (47%) and second (45%) time home buyers.
Apartments are considered to be the most popular property type when it comes to purchasing a property. Even though 79% of the buyers in Mumbai are looking for apartments, buyers are now looking for alternate property types especially in southern cities. 57% of buyers in Chennai invested in land in 2014 followed by 27% in Hyderabad.
More and more property seekers are looking for affordable homes. Demand for properties under INR 30 Lacs has increased in most of the cities across India. In Delhi NCR where 32% buyers purchased properties under 30 Lacs in 2014, around 49% buyers are seeking to buy affordable properties. In Bangalore the demand has gone up from 21% to 44% and in Mumbai from 37% to 52%. Chennai is the only city where buyers are ready to shell out more money this year. In Chennai 62% of the buyers bought property under INR 30 Lacs in 2014 and only 38% property seekers are looking for properties in this budget in 2015.
With increasing awareness buyers today are looking beyond simply buying a home. They take into consideration a number of aspects before finalizing their property purchase. Infrastructure like roads, availability of public transport, security and scope of future price appreciation in the locality are some of the trending parameters in all the Indian cities.
The building collapse incident in Chennai in 2014 was an eye opener for the real estate industry. Where in 2014 only 19% buyers in Chennai considered track record of the builder as a critical parameter, this number has moved to 57% in 2015. Besides track record of the builder some of the other major aspects which buyers are considering before deciding a project are locality, affordability and amenities provided.
A stable government brings in hope for development in our country. And if the government puts infrastructure and housing for all amongst its list of main agendas the buyers confidence on the realty industry is bound to increase. 64% buyers in Delhi NCR who purchased a property in 2014 felt the same followed by 64% in Hyderabad and 57% in Bangalore.