Track2Realty Exclusive
While buying a house majority of the Indians have now matured to pay for ready-to-move property than a castle in the air. No wonder, despite the high appreciation potential, the new launched projects have few takers and there is hardly any market for a pre-launch offer. Thanks to the poor delivery of the real estate developers, unmet commitments and execution risk involved, at least the end users are not interested in new launches anymore.
More than seven out of 10, as many as 74 per cent, prospective home buyers across ten cities of India are negotiating for a ready-to-move property as it is easier to evaluate the probability of appreciation, the reasonability of the imposed rates by the builder, exact specifications being met or not. Out of the remaining 26 per cent, who opted for new launches for price discounts in recent times, majority of them, as many as 82 per cent, are now repenting their decision due to delay in project completion. Having burnt their fingers, nearly nine out of ten, 88 per cent, blame a nexus between developers and greedy investors that makes the new launches a hot property.
These are the findings of ten city survey by Track2Realty, the real estate market tracker. Track2Realty conducted this survey in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Kochi, Ahmedabad, Chennai, Patna, Pune and Chandigarh between April 1 and 14. A structured questionnaire that was based on the choices & concerns, risk exposure & appetite, and their satisfaction index was given to respondents who belonged to a mix of mid segment and luxury projects’ buyers to understand the choice of qualitative and quantitative socio-economic groups.
Delay in the delivery is cited as number one reason of their reluctance to book a new launch by almost all the home buyers, 92 per cent. Default in design, construction quality and fear of faulty construction is what scares the home buyers, 70 per cent, to better opt for “you get what you see” project. Frustration of home buyers is not only with the small developers, but even the leading developers suffer from the trust deficit of buyers. Nearly eight out of ten, 78 per cent, say they have not got what was showcased as the sample flat.
The industry, as expected, is not amused with these on-your-face findings, something that everybody knows but nobody accepts. Lalit Jain, President, Confederation of Real Estate Developers Association of India differs with the survey findings saying that “ready-to-move in flats comes at a premium rate and the availability of such in the country is currently just 5 per cent.”
…..to be continued
