Developers deals top priority for homebuyers, says report
2 min read . Updated: 18 Jun 2020, 03:25 PM IST- Homebuyers are prioritizing discounts over developer's credibility or the infrastructure in the area, says report
For potential homebuyers, deals and discounts matter the most, more than even the developer’s credibility or the infrastructure around the home they plan to buy, according to a report by Housing.com and National Real Estate Development Council (Naredco), titled Consumer Sentiment Survey.
The report, released on 17 June, covered the views of more than 3,000 potential homebuyers.
About 44% potential homebuyers said that deals and discounts would motivate them to purchase a property in the coming months, said the report. The credibility of the developer matters to only 24% of the respondents. Other things that buyers prefer include affordable loans, healthy appreciation of the property and the infrastructure around the house.
As there’s uncertainty around economic growth, business and jobs, 53% respondents in the survey said that they have postponed their search for the coming six months. They will start their search after that. However, 19% also said that they have put their search on indefinite hold.
As more people are working from home and children are attending online classes, many have also started feeling that their existing house is small and want to upgrade to a bigger house. About 33% of the respondents said that they would look for a bigger house.
Existing homeowners are not keen on buying a second house or a property for investment. Only 27% of the respondents said that they would want to purchase a second house, and 30% said that they would look at property for investment.
Those living on rent want to buy a property, but most feel that property prices are too high.
Real estate companies, too, have realized that buyers are looking for affordable pricing and discounts. They are also keen to sell the inventory that’s piling up. Many have, therefore, started offering deferred payment options to buyers. In this plan, buyers pay 5-30% of the property cost at the time of buying, and the remaining later or at the time of possession. In such plans, buyers save on interest cost. They would need to take a home loan once the flat is ready for possession.
Other offers include refundable booking amounts, cashback schemes and freebies on booking.
However, ensure that you read the fine print before opting for any offer (read more here). The best option is to ask for an upfront cash discount on the total price instead of trying to make sense of the offers that developers are giving you.
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