Real Estate

Tenants across 6 top metros look to buy houses in 2020

Sangeetha Chengappa Bengaluru | Updated on January 08, 2020 Published on January 08, 2020

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A survey has found that 64 per cent of buyers have bought a house before the age of 35 and 65 per cent of buyers are below 45 years of age

After living in rented houses for the last 7 years, 29 year old techie Siddharth Rustagi’s top priority in 2020 is to buy and move into a 3 bhk house in Bengaluru in the next few and he is willing to pay upto Rs 1 crore for it. Marketing professional, Tara Shetty is looking for a Vaastu-compliant 2 bhk home for her 3-member family in Hyderabad and has a budget consideration of upto Rs 70 lakh for it this year.

Realtors can look forward to a great year ahead as 64 per cent of people living in rented accommodation in Delhi-NCR, Bengaluru, Mumbai, Pune, Chennai and Hyderabad are planning to buy houses in 2020. While 85 per cent of these people prefer to move into ready-to-occupy homes, the top three most important considerations for buying homes are – cost of the house, regular water supply and proximity to the workplace, according to ‘India Real Estate Report 2019’ released by real estate portal NoBroker.com. The portal conducted a survey of 14,562 people across the top 6 cities mentioned above and collated data from tenants, buyers, listings and closures on the platform from its user base of over 7.5 million customers to cull out these trends.

Budget is top consideration

71 per cent of these people are looking to buy homes within a budget of Rs 60 lakhs, while 12 per cent have a budget of Rs 60 – 80 lakhs and 10 per cent have a budget of Rs 80 lakh to Rs 1 crore, in 2020. One of the most important amenities that buyers were looking for is car parking with 58 per cent citing it as key.

“Stagnant property prices and home loan rate-cuts has boosted consumer confidence. This is the best time to buy a house as there is a lot of unsold inventory in the market as a result of which developers are luring interested buyers with good offers. Majority of the buyers want to buy ready-to-move-in homes because builders have previously delayed delivery of homes by 3-4 years, and buyers don’t have to pay GST on ready-to-move-in properties. We see a sharp decline in preference for broker services with only 11 per cent preferring to use brokers to find houses, a decline from last year’s 14 per cent, while 28 per cent prefer to find houses on real estate websites, up from 15 per cent in 2018” said co-founder and CEO of NoBroker.com, Saurabh Garg.

Buyer demographics

NoBroker found that 64 per cent of buyers have bought a house before the age of 35 and 65 per cent of buyers are below 45 years of age. While residential is still the preferred choice for investment among a vast majority of the people (86 per cent), commercial properties are gaining ground with 14 per cent evinced interest in commercial properties as rental yield is higher at 8-12 per cent compared to rental yield of 1-3 per cent for residential properties. Vaastu is a major consideration for buying homes with 73 per cent admitting they check for Vaastu compliance before buying, up from 52 per cent last year. While the preference for 2bhk houses dominate, 31 per cent prefer newly constructed properties.

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Published on January 08, 2020
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