Mid-Range Homes are Homebuyers First Choice says the Survey

According to the survey done by LIC and ANAROCK, mid-segment properties that are priced between Rs 45- 90 lacs are in the major demand among the potential homebuyers. As opposed to the common perception, Pune and Hyderabad have emerged as the most preferred cities for investment than Bengaluru.

Government has been making efforts to revive the real estate sector of the country. The court rulings in favour of the buyers, GST, and RERA have all come together to push the homebuyers towards the purchase more.
 
RERA registered properties over low home loan rates
Buyers who took part in the survey stated that they prefer RERA preferred properties over low home loan rates. Seventeen percent of the participants of the survey also bought properties last year saving in their capital gains.

Affordable segment (homes under Rs 45 lacs) is the most preferred budget category in H2 2018, has taken a backseat this year (31 percent).

Pune and Chennai are the homebuyers first choice for the affordable segment with 52 and 51 percent votes both the cities. Together the demand in both the cities accounts for up to 73 percent of buyer’s demand in both affordable and mid-segment.

This year the homebuyers preferred the homes worth Rs 90 lacs. The percentage of the homebuyers preferring the ultra-luxury (properties over Rs 1.5 crore) keep falling down.
 
Two BHK most preferred among buyers
In one of the surveys in 2019, 2BHK was voted as the most preferred housing unit by the buyers and this still continues. However, the preference for 2BHK has fallen 5 percent from 57 percent in 2018 to 52 percent in 2019. Thirty-one percent indicated that they prefer 3 BHK home while 15 percent preferred buying a 1BHK house. Only 2 percent showed interest in investing in 4BHK house.
 
Investing in gold, stock or real estate?
Fifty nine percent of participants preferred real estate over other investment assets like gold, stocks and FDs. Currently, the property prices are lowest across the country and the government is making tremendous efforts to boost the sales in the real estate sector. It is expected that this year will see a progressive rise in sales.

The stock market is still the second-best investment option for the buyers. Pune has emerged as the most preferred city for real estate investment as compared to the rest of the metros.
 
 
Regulatory changes play an important part
Seventy two percent of the survey participants believe that the measures are taken by the government to make the real estate sector more reliable and buyer-friendly has helped in boosting the confidence of the buyers. Thirteen percent stated that the previous mishaps by the developers won’t easily go away and it will take more than efforts by the government to rekindle their trust in the real estate developers.

To boost the trust among the home buyers, last year the government announced last-mile funding of Rs 250,000 crore to help the projects that have been stuck due to shortage of funds. This will help in completing the projects that have been stuck in the middle.
 
Who is buying?
Sixty percent of the residents in NCR are looking to buy the property in the next six months, 24 percent in Kolkata and 26 percent in Bengaluru. Pune is the biggest choice for the investors and homebuyers, 58 percent are hoping to invest in Pune in the next six months. While Hyderabad and Mumbai have 47 percent and 42 percent of potential buyers.
 
Connectivity is important
When it comes to investing in the city, most homebuyers look for proper inter and intra connectivity. Not just to the main city but also to IT hubs of the city should be well connected by proper roads and transportation.
 
Ready- to move- in is highly preferred
Project delays are the reason most buyers prefer ready to move in homes rather than under-construction properties. With the developers holding unsold inventories across the country, the potential buyers have a wide range of choice to buy the house and also negotiate a good discount.