The Six Month Golden Period To Own A home

Looking for Apartment for Sale ? 

Confused Is it the Right Time to buy a flat or house? 

The real estate sector like most businesses had come to a grinding halt because of tough time last year. However, buyers are tired of being cautious. Many who were planning to buy a house before the pandemic are now not letting the on- going health crisis be a hindrance. They say that ‘almost any skill except patience can be taught; however, the pandemic taught us that too’.

THE TREND

Most home-buyers today are looking at the six-month window for possession of a flat for sale, which means — if they purchase their dream home during the first month of 2021, their home would be ready around the Diwali of 2021. The report, which is based on a survey (conducted predominantly among 20–35-year-olds) and titled — Home Buyer Preference Survey: The 2020 impact reveals that a greater proportion of people in the age group of 20–35 years were likely to defer their home purchase plans by more than six months. Consumers above 35 years indicated that they are more inclined towards buying a property in the next six months. Also, more than 50 per cent of the prospective home-buyers indicated a preference to buy a 2-BHK apartment with unit size ranging from 800 to 1,000 sq ft. The fact that the six-month option is being preferred by many has led to the otherwise traditional developers to step out of their comfort zone too, feels Samantak Das, chief economist and head — research & REIS, JLL. “It is encouraging that more than 50 per cent of the prospective buyers surveyed have expressed their readiness to potentially buy homes within the next six months. At the same time, developers are relatively flexible to allay buyers’ concerns in this fragile environment concerning immediate cash outgo and long-term financial obligation by offering attractive, flexible payment options with minimum upfront payment,” he says. T Chitty Babu, member of CREDAI Chennai, says, “Right now, we are seeing people opting for ready-to-move-in (RTMI) projects or those with a possession date within the next six months. In Chennai, some developers are offering discounts as well for projects that are due to be delivered in the next three-four years, but buyers are not opting for those.” The most likely reason for this trend seems to be the fact that RTMI properties offer quick and easy possession.

“Most people are aware of their salary post the pay cuts; many have also confronted their employers on possibilities of any lay-offs. After mulling over all these aspects, buyers are now looking for apartments for sale, which they can shift into by either the end of the year or before the next financial year begins,” he further adds.

PERKS OF THE GOLDEN PERIOD

The key reasons why people are more inclined towards buying a property in the next six months include:

1. Lowest home loan interest rates;

2. Flexible payment plans being offered by the builders;

3. Stabilization of salaries among buyers after almost six months of fluctuations as many employers have restarted their businesses, and have laid off as much staff as they could have without it eating into the quality of the output;

4. A fear that the prices will rise in FY 2021–22;

5. Many renters are showing an interest to move into a home they ‘own’;

6. The six-month possession date is not too far and yet not too close, thus allowing buyers to plan financially.

Santosh Bhurani, real estate consultant, Bhurani Real Estate (Bengaluru), says, “Because of 2020 pandemic, as an industry, we have had to re-invent ourselves and make sure we can still reach out to our buyers via video calls, virtual site visits and discounts. Hence, now if people are looking at projects they can move into in the next six months, it’s a step in the right direction and will lead to a positive outlook. Also, this timeline will finally then force us all to sit up and invest more in technology during construction, and use drones for mapping and surveying our sites because there are not enough engineers on the ground to do that. This might also mean that the quality of construction will improve because the builders would have to concentrate on fewer projects right now than many spread across the next five to ten years.”

Consumers above 35 years of age indicated that they are more inclined towards buying a property in the next six months. Also, more than 50 per cent of buyers indicated a preference to buy a 2-BHK with size ranging from 800 to 7,000 sq ff.

YOUR CHOICE

Arvind Goel, a member of Navi Mumbai CREDAI-MCHI, says, “As a consumer, you have the power to say ‘no’ to a project if it is getting delivered on a date later than you desire. No one can influence your decision and you are always stronger on the negotiating table. Hence, now is an ideal time for buyers who want to purchase their homes, especially, in the suburbs of Tier-I cities or even make a transition from I-BHK to 2-BHK. However, this window of opportunity is very limited, as there are no new launches because of the pandemic, and the gap between supply and demand is decreasing with every passing day.”

THE NUMBER GAME

1. Amidst limited new launches, unsold inventory in the top six cities shrunk by 5% on Y-o-Y basis from over 6.34 lah units in Q2 2019 to over 6 lakh units in Q2 2020;

2. Kolkata saw an yearly decline of six per cent in Unsold stock.

3. Prices remained range-bound in all cities during 2020.

— Source: ANAROCK, Times Of India, 510earth, JLL, Real Estate Forum India