90% of Prospective Buyers Expected to Buy Home in Next 3 Months

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As many as 90% buyers want to purchase a house within the next three months and 80% prefer properties in the sub Rs 75 lakh category, says a recent survey. Prospective homebuyers want to make the most of this ‘great time to buy a house’, with more than 80% of the prospective buyers inclined towards buying a house in the next three months, says a study by JLL with RoofandFloor called Homebuyer Preference Survey 2021: The COVID-19 Impact. The market survey covered more than 2,500 prospective homebuyers with respondents spread across the top six cities of Mumbai MMR, Delhi NCR, Bengaluru, Hyderabad, Chennai, and Pune. "Developers have been operating on very thin margins for the past few years. As the market recovers, reputed developers are becoming less flexible in terms of offering price discounts and other benefits to homebuyers.With most of the prospective homebuyers expected to make a purchase in the next three months and developers launching new projects to monetize their land banks, the residential market is expected to get back on the recovery path and 2021 is likely to end on an optimistic note," the survey said. As per the survey, new launches are expected to go up in H2 2021, with developers launching larger sized houses and apartments to capture the changing preferences of consumers in the post-COVID era. If the impending Covid-19 wave can be contained and consumer sentiments improve further with the festive season, the sector is expected to make a healthy recovery in the second half of 2021. There is an increase in demand for 3BHK apartments in Bengaluru, Chennai, Hyderabad, and Delhi NCR. Cities such as Bengaluru, Chennai and Hyderabad have witnessed demand for villas and plotted developments. There is also greater emphasis on floor plans and presence of an additional room for work/online classes. Connectivity to office and schools no longer dictates home purchase decisions. Lower density environments, access to open green spaces, access to healthcare and the size of the apartment have moved up in importance in the decision-making matrix. Developers have also taken cognizance of the changing preferences and are open to customisation to suit buyer needs. Additionally, developer profile now occupies an even more significant position in the decision-making matrix. There is an increased preference and willingness to pay a premium for projects by developers with an established track record. "The 'work from home' phenomenon is here to stay and this has titled homebuyer preferences towards peripheral submarkets. Currently, prospective buyers are more willing to take up the occasional longer travel to work in exchange for spacious homes at affordable rates in less crowded spaces. Adding, most of the buyers making a home purchase decision for self-use fall within the categories of first-time homebuyers, homebuyers upgrading to larger or better houses and homebuyers purchasing a second asset to be used as a holiday home. "The lockdown induced forced homestay has brought about a need for the sense of security that comes with having a roof over our heads. Self-use continues to be the primary reason for home purchase even today. So much so that in certain markets like Hyderabad, which have seen a reasonable appreciation in home prices over the last few years, increasing interest from investors was witnessed as they found this to be an opportune time to strike a good deal with developers," the survey noted. The size of the apartment has assumed greater significance and there is a clear preference for larger, more spacious homes. In fact, the buyers are today showing a greater willingness to relocate to suburban/peripheral markets to get larger homes while keeping the budget intact. Cities like Bengaluru, Chennai, Hyderabad as well as the Delhi NCR market are the prominent cities where the demand for 3BHK apartments has increased. Layouts of apartments, presence of balconies and an additional small room for work/online classes are in focus. This trend is more prominent in the cities of Mumbai and Pune where 1BHK and 2BHK are usually the most sought-after configurations.