Delhi-NCR residential realty market: CommonFloor.com survey
A recent survey by CommonFloor.com has showcased home buyers’ preferences and spending pattern in Delhi-NCR region. The parameters that were taken into account included respondents choice of city, budget, type of property and the period they are planning to buy a house within.
Preferred City
30% of the respondents chose Noida as the most preferred city, with Delhi being close with 27%. Surprisingly the other developing cities of the NCR region like Bhiwadi, Sonepat, New Gurgaon etc. were preferred by 20% of the respondents leaving Gurgaon, Ghaziabad and Greater Noida only 12%, 6% and 5% of the votes respectively.
The fact that 30% of the total respondents have preferred to buy a house in Noida region shows the overwhelming realty development in the city. One other reason for Noida to be a preferred city is the price factor compared to Delhi. Besides boasting of excellent connectivity with the national capital, Noida offers desirable lifestyle for young professionals at an affordable rate. While in Noida, the average price for property ranges between Rs 4500-Rs 5000 per square feet, a potential home buyer in Delhi will have to shell out a whooping Rs 15000-Rs 20000 per square feet to avail a property.
Factors like affordability, growth of IT/ITeS industry and enhanced connectivity with the Delhi Metro, Noida Expressway and the Dwarka Expressway have resulted in generating greater demand in Noida and Delhi.
Preferred Property Type
When it came to desired property type, 59% of the respondents cited apartments as the most preferred property they would like to own and another 39% chose to go with plots and a mere 2% wanted villas.
This overwhelming preference for apartments was also very prevalent in a recent nationwide survey where 63% of the respondents opted for apartments. This no doubt is a clear reflection of the soaring highrises in the Delhi-NCR region and also the growing acceptance of community living among the urban population.
It also highlights the growing demand for luxury amenities which most of the apartments offer these days.
Preferred Budget
Apartments in the range of up to Rs 40 lakh were much in demand with 63% of the respondents opting up to 40 lakh as they budget. Another 21% opted for apartments in the range between Rs 40 lakh to Rs 60 lakh and 10% respondents opted for apartments worth Rs 60 lakh to 1 crore. Only 6% opted for properties worth more than Rs 1 crore.
The survey shows that there is an immense potential for mid segment market as a total of 84% of buyers have the budget of up to Rs 60 lakh. It shows that on the backdrop of high inflation and astronomical price rise across the country (average property price escalation has been 10%-12% in the past one year), potential home buyers are limited to a constrained budget when it comes to buying a house.
Preferred buying time
Respondents were being asked about the time limit within which they would like to buy a house. The buyers’ responses seem to bring positive indication for the realty developers as buyers opted for a quick time limit within which they are looking to buy a house. While 44% of them opted to buy a home within 6 months, 24% opted for 4 months and 32% opted for as quick as 2 months of time period.
The survey shows that Delhi-NCR real estate is a hot one as there is a quick demand for residential realty. Taking into consideration the fact that residential launches have come down by as much as 50% in the later half of 2012, launches are expected to rise in 2013.
The results may also suggest that there is a gap between demand and supply of mid range and affordable segment as there is a significant portion of buyers who want to buy mid segment properties quickly.
The survey conducted by CommonFloor.com provides a vital insight into the home buyers’ demand in Delhi and National Capital Region, especially showcasing the huge demand for mid segment properties and projecting the region as the preferred real estate destinations in India.
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