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Good time now to buy property

Good time now to buy property

Good time now to buy property

Now is the best time to buy property, ac­cording to the bro­ker community. The finding is the result of a na­tional survey titled "The Real Picture" conducted in metros and Tier II cities of India by Makaan.com.

The study, done on the portal between August 11 and 20, took responses from 3,271 brokers/realtors nation­ally. Most of the people who participated in the survey belonged to the 26-35 age group.

WAITING GAME

The study says that in anticipa­tion of a correction in real es­tate prices, property seekers have adopted a wait-and-watch approach. They are holding back their property purchases in the hope that realty prices would fall further. Today, a ma­jority of brokers feels that prop­erty prices have stabilised and this is the best time to buy.

As many as 49 per cent of the respondents feel that the realty prices are now steady and this is the ideal time to invest in real estate. Another 34 per cent con­firm that this is a good time to buy as they think prices are ex- pected to rise.

However, 9 per cent suggest a further wait, as they feel real estate prices are likely to fall. Another 8 per cent are not sure.

BUDGET CATEGORY

It is advisable for property seek­ers to buy property now, not just because the real estate prices have fallen but also be­cause there are enough options available in the budget catego­ry. This is also the best time to negotiate and strike a good deal, as developers are ready to sell their piled up inventories, says the study.

Over the last three months (June 09 onwards) the scenario has taken a positive turn and the sentiments in the property market are echoing some initial signs of revival.

As many as 79 per cent of na­tional respondents feel the sec­tor has revived in the last three months. Another 11 per cent are still waiting for the market to boost further. And 10 per cent are unsure if the segment has improved.

The recovery can be attrib­uted to the steps taken by the government to infuse liquidity and reduce interest rates on home loans, encouraging more people to invest in real estate. Signs of economic revival have also boosted property seekers' confidence, says the study.

AFFORDABLE HOUSING

Affordable housing has emerged as the need of the hour. Realtors across the coun­try are experiencing a higher percentage of demand in the sub Rs 40-lakh segment.

As many as 66 per cent of re­spondents confirmed that a majority of homebuyers today want to buy houses in this segment. Another 26 per cent are re­ceiving enquiries for houses within Rs 40 lakh to Rs 75 lakh.

The luxury housing seg­ment continues to have scarce demand; only 8 per cent feel that there is demand in this category. Builders today are either restructuring their existing schemes or are introducing more projects in the affordable segment.

READYMADE HOMES

A ready to move in home is the current flavour of the realty sec­tor. Property seekers prefer in­vesting in ready to move in apartments.

As many as 54 per cent of the respondents, nationally, believe that maximum demand, amongst property options, is for ready-to-move-in apart­ments. Resale (old) apartments have 17 per cent takers.

New residential complexes constitute only 11 per cent of the total demand.

At the bottom of the pyra­mid are plots and under-con-struction apartments with de­mand of 9 per cent each.

THREE MONTHS

It takes three months to close a deal, say respon­dents across Indian cities. Some months back, when recession was at its peak, property seekers were mulling over or delaying their property pur­chase decision, therefore resulting in none or very few transactions. Today when the market has im­proved, a majority of respondents confirm that the deal finalisation time for a genuine property trans­action is three months. As many as 59 per cent of respondents confirm that in the current market scenario, it takes three months time for an ideal transaction to close.

Another 31 per cent say that it may take 3-6 months for the transaction to be completed.

And 10 per cent opt for the 6 months to 1 year bracket of time taken to close the agreement.

SUB-40 LAKH IS FAVE

Respondents in Delhi, Mumbai, Bangalore and Chennai feel that the maximum demand for property is in the under Rs 40 lakh segment. However, there also exists a sizeable demand for the mid segment (Rs 40 lakh to Rs 75 lakh). The luxury segment (above Rs 75 lakh) con- tinues to have fewer takers.

Amongst metros, Bangalore with 75 per cent has the highest demand for affordable homes. Chennai, Mumbai and Delhi follow the city with 65 per cent, 53 per cent and 52 per cent demand in the segment, respectively.

Last Updated: Wed Aug 07 2013

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