The Real Estate Industry Scenario in 2014: Property Segment Hoping For a Turnaround

The Indian real estate market of last year was an eventful year for the Indian Real Estate sector with the introduction of a Real Estate Regulatory Bill and a Land Acquisition Bill in the parliament. For the real estate property buyer’s side, it can be best described as a lackluster year with high commercial property prices and property loan interest rates that kept the buyers waiting on the sidelines. As we move in current year it is important to gauge the mood of home buyers in terms of their desire and aspirations. For this purpose, Cosmic India – India’s fastest growing property real estate company, highlights on why the real estate segment would make a turnaround in this year.

Cosmic India

The Property market in 2014 will be driven by end users:

Speculators and Investors have been riding the Indian real estate property market since a long time; however, they will make way for end users in 2014. The majority of home buyers want to purchase a real estate property in 2014 for self-use as they are currently staying on rent. An almost equal number of property buyers want to buy real estate property in India to meet the growing family requirements and for long term investment. The analysis shows that the year 2014 may experience a very positive shift from the earlier years and will bring in the much required stability in the property market in India. As the real estate property transactions have fallen over the past 12 months, speculators and investors are finding it difficult to exit the market.

The Residential property prices will either stabilize or will appreciate marginally in 2014

The real estate property prices in India have remained stable over the past few months and the mood of the market suggests a continuation of this trend. 26% of home buyers feel that the residential property prices would remain stable over the course of 2014. 46% of buyers expect the prices to go up from the current level with majority of them expecting an appreciation of up to 10%. This should bring some relief to the buyers in 2014 as generally more than 10% appreciation is expected on a yearly basis. 28% of buyers are advocating for the prices to go down from the current level. 17% of them are expecting a drop of over 10%.

The real estate property budget of home buyers is likely to remain the same in 2014

There has been talk of a slowdown in the Indian economy with all economic indicators showing a negative trend. His budget for buying a real estate property in 2014 will not be affected by the slowdown. This reinforces the confidence of the home buyer in real estate as an asset. There are 23% of buyers who have reduced their budget allocation while there are another 19% who are ready to dish out more money for property buying.

The apartment is the preferred choice of home buyers

In 2014, the majority (65%) of home buyers will be looking for apartments or flats. Residential plots (15%) also emerged as the preferred choice for a few home buyers. The apartment is the preferred choice for people in Delhi, Mumbai and other such cities that have high property prices and scarcity of land. Security and community living also contribute in making apartment the preferred option. The service / studio apartment have also gained popularity; however, they still account for a very small portion (3%) of the overall demand. There is an interesting overall shift in the property type preference; a decade back or so, quite a lot of the people preferred an independent/builder floor; however, now the preference for the same remains only 4%.

The real estate property investment budget for home buyers

Owning a house has been a priority for Indians since ages; it is treated as a symbol of financial stability and social status. Affordable housing i.e., a house costing up to 40 lakhs will continue to be a preference for a majority of home buyers with almost 60% buyers opting for this. Mid-segment will be the preferred budget category for 34% of home buyers. High end housing will be preferred choice for 6% of buyers whereas only 1% of buyers will be looking for luxury housing.

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Tags : Investment Budget, Real Estate Industry Scenario,Cosmic Projects,Cosmic Structures, Affordable Housing, Residential Property Price,