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Home >Industry >Infrastructure >Homebuyers want discounts, spacious homes: survey

Homebuyers want discounts, spacious homes: survey

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Three-fourths (75%) of the surveyed builders said they have given price discounts. Out of the 75%, more than half offered discounts of upto 5% while 40% extended discounts from 5% to 10% of the property prices. (Mint)

  • Around 84% of the respondents in a survey of nearly 100 builders said sales improved last year compared to the corresponding period in the preceding year, with 87% claiming that discounts attracted homebuyers and resulted in sales, says a new survey by real estate portal NoBroker.com

BENGALURU: Discounts offered to homebuyers generated better sales in the second half of 2020, a majority of builders said, according to a new survey by real estate portal NoBroker.com.

BENGALURU: Discounts offered to homebuyers generated better sales in the second half of 2020, a majority of builders said, according to a new survey by real estate portal NoBroker.com.

Around 100 builders participated in the survey to map the latest property purchase trends and sentiments in the country. Around 84% of the respondents said sales improved last year compared to the corresponding period in the preceding year and a majority (87%) claiming that offering discounts attracted homebuyers and resulted in sales.

Around 100 builders participated in the survey to map the latest property purchase trends and sentiments in the country. Around 84% of the respondents said sales improved last year compared to the corresponding period in the preceding year and a majority (87%) claiming that offering discounts attracted homebuyers and resulted in sales.

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Three-fourths (75%) of the surveyed builders said they have given price discounts. Out of the 75%, more than half offered discounts of upto 5% while 40% extended discounts from 5% to 10% of the property prices.

Saurabh Garg, co-founder and chief business officer, NoBroker.com said, “The pandemic marks a turning point in India’s real estate sector, especially in the way property seekers are approaching home hunting and the way builders are responding to the shift in consumer sensibilities and preferences. The government launched several encouraging initiatives at both the Central and state levels to bring down the actual cost of ownership and make purchasing homes more affordable for Indian buyers."

The Maharashtra government had reduced stamp duty from 5% to 2% and followed this up with a further reduction in stamp duty to 1% for homes purchased by female buyers until 31 March. Karnataka also reduced stamp duty to 3% for homes priced between 35-45 lakh.

Regarding the efficacy of stamp duty reduction in Maharashtra, the NoBroker.com survey found that majority believed it would help improve sales.

The pandemic also encouraged the entry of a new class of consumers, namely millennials. According to the survey, 85% of the builders reported that millennials comprised the most active age group (30-40 years) when it came to homebuying activity in 2020.

New-age homebuyers are also setting aside bigger budgets in line with the growing demand for more spacious homes.

The demand for 2 BHK units saw the maximum increase in 2020 at 59%, followed by 1 BHK (22%), 3 BHK (17%), and 4+ BHK (2%). The 60-80 lakh range comprised the second-most sought-after price bracket (24.1%) among the new-age homebuyers, followed by those with a budget of 1 crore and above (20.4%). About 13% of the buyers preferred properties between 80 lakh and 1 crore while only 9.3% of prospective buyers looked for homes below the price of 40 lakh.

The survey also highlights the emerging trend where more than half of the builders said they received more leads from buyers through online portals compared to the previous years.

Finally, with remote work, many home-seekers are looking for a property in the outskirts and suburbs as opposed to city centres, specially with proximity to the workplace no longer being a determining factor. Around 59% of builders observed greater demand for property located in the suburbs, that can be attributed to the need for spacious properties at affordable prices.

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