Brand reliability, trustworthiness, timely delivery are other factors are considered by those purchasing an affordable house, says a RICS – Knight Frank report
Price, construction quality, timely delivery, reliability, trustworthiness, brand awareness and visibility as well as past track record were the key factors homebuyers considered while selecting an affordable housing property, according to the RICS- Knight Frank report on affordable housing.
At the time of purchase, homebuyers tend to put cost as the topmost consideration, followed by safety and security. Homebuyers and intenders are also categorical that cost-related transparency like actual cost, maintenance charges should be mentioned right in the beginning to avoid complications later on, the report said.
As many as 80 percent homebuyers put cost as the topmost consideration while buying a home followed by safety and security for 71 percent homebuyers. Nearly 52 percent homebuyers highlighted parking space as a major gap in terms of their requirements in their current residences. This was followed by adequate security, playground and availability of public transport which accounted for 43 percent each, according to the report by International Property Consultant Knight Frank in association with Royal Institution of Chartered Surveyors (RICS).
Nearly 53 percent homebuyers said that self-use is the main purchase driver. However, 48 percent highlighted better location and 44 percent cited expanding family size as other important drivers for their decision to buy houses.
As per Knight Frank Research, the residential market of the top eight cities in India – Mumbai, NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad witnessed an infusion of 0.57 million units since 2016. Also, given the push in the affordable housing sector, the private sector players have participated in the development of the affordable housing programme, which is visible from the latest set of numbers that indicate a consistent high share of less than Rs 25 lakh ticket size since 2016.
Parking space and safety of residents are key concerns that people have while choosing a place to stay. Parking space continues to be a chronic problem on the residential front across India along with security that also comes out as a major concern. People feel that there is a need for parking facility for at least one car and open space is required in the residence which will lead to a sense of comfort at home. Also, they feel that adequate security measures should be undertaken to ensure safety of the residents, says the report.
According to homebuyers and intenders, self-use, better location and expanding family size, amongst others, are the major drivers for their decision to buy houses. More than 50 percent people want to own a house for self-use indicating a growing need for 'independence' and 'long-term security'. 'Opportunity to move to a better location for access to better facilities' and 'increase in family size in near future' are other major reasons for purchasing affordable housing in India, the report says.
The latest RICS – Knight Frank report captures findings of a market survey that was conducted with homebuyers across 15 cities in India to understand the expectations of the urban end-users for ideal affordable housing. Homebuyers ranging from age 23 to 66 were surveyed.
Shishir Baijal, chairman and managing director of Knight Frank India said, "Customers of affordable housing are highly value conscious and since they normally buy a house once in their life time, the focus is more on developer credibility. Today, when most of the stakeholders in real estate sector are boarding the affordable housing bandwagon, they need to first understand their consumers before converting their ideas into reality. This explicitly explains why few of the affordable housing developers, who are keeping customer preferences on the forefront are succeeding in this sector while most of the others are not."
"Housing is one of the most fundamental demands that influence the quality of life. Access to acceptable living conditions is an elementary human need, which affects individuals at many levels as it provides shelter, safety, security and for most of us represents the most significant investment that we will ever make during our lifetime."The affordable home segment offers great potential which is yet to be fully explored. This segment will definitely perform better when affordable housing projects ‘on-ground’, while catering to the needs of customers on security, safety and lifestyle attributes, are successfully executed and energies stay focused on delivering these within the promised cost and timeframes," says Nimish Gupta FRICS, Managing Director, South Asia – RICS.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.