As many as 39% buyers wish to purchase a property for self-use this year, says a survey. This means that the investors in the market will be far less than previous years.
As we welcome the New Year, it is important to take stock of the overall mood of home-buyers in terms of their aspirations and fears. Makaan.com, conducted a survey across Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh and Indore for which over 1100 home-buyers participated. The key findings of the survey were that as many as 39% buyers wished to purchase property for self-use and that location would be an important deciding factor than price. Riding on the government’s vision of Housing for All, affordable housing will be the flavor of the year.
1.) The year of end-users:
The year 2015 will experience a very positive shift from the earlier years and will bring in the much required stability in the property market. Speculators and investors who have been riding the property market since a long time will make way for end-users this year. According to a survey by Makaan.com, as many as 39% want to purchase a property for self-use as they are currently living in rented accommodation. Another one-third want to buy property to meet growing family requirements. Only 14% buyers want to buy a property for long-term investment whereas 5% are looking to buy a property as a short-term investment.
2.) Property prices to remain stable in 2015:
Property prices have remained stable over the past few months and the mood of the market suggests a continuation of this trend. Around 33% home-buyers feel that the residential property prices would remain stable over the course of 2015, whereas 27% of buyers expect prices to go up from the current level with majority expecting an appreciation of not more than 10%.
3.) For buyers, location is more important than price:
Location will be the most important purchase consideration for home-buyers in 2015. The preference for location will be even higher than price. This will be an important shift in the purchasing pattern of home-buyers this year. Other factors that will influence purchase decision will be price, connectivity and proximity of the property to hospitals, schools and offices. It is interesting to note that only 8% of home-buyers rate size as the top purchase consideration.
4.) Affordable and mid-segment housing to be hot favorites:
Affordable housing i.e., housing in the range of 40 lakh will continue to be preferred by a majority of home-buyers with as many as 46% buyers opting for it. Mid-segment housing (`40 lakh to a crore) will be the preferred budget category for 31% of home-buyers. High-end housing (`1 crore and 2 crore) will be a preferred choice for 15% of buyers whereas only 8% of buyers will be looking for luxury housing (over 2 crore). Among types of properties, apartments will continue to be preferred over plotted homes or villas. Service/studio apartments have gained popularity but will account for a small portion of the overall demand.
5.) Factors that will keep buyers away from buying property:
High property prices will be the single biggest hindrance in buying property in 2015. As many as 43% home-buyers consider the high property prices as a major challenge and 21% home buyers are unable to find a property close to their preferred location and appropriate connectivity. They are either forced to compromise with the area or postpone the purchase.
Source: HT Estates, Jan 3, 2015, Page 01