Affordable Housing

Affordable Housing – a strong undercurrent of demand from Indian consumer

A report by foreseegame.com & Microsec Research 8th November 2013 | 1 8th November 2013


A report by foreseegame.com & Microsec Research 8th November 2013 | 2

Affordable Housing – a strong undercurrent of demand from Indian consumer!

Investing in real estate has always been a top preference for middle class Indians. As a result, the property demand and value have spiraled up during the last decade. The growth can be attributed to various reasons like favourable demographics, increased purchasing power and easy availability of finance. However, there are other aspects as well which influence the buying decision. In today’s multifaceted world of real estate, the choices are mindboggling, and it is undoubtedly much more complex than the pretty, colourful homes that children paint in their drawing books. There are several reasons why Indian middle class dream of owning a property. According to traditional norms, owning a house gives its owner an added aura that helps to build his or her social repute. Second, high inflation has made physical assets such as real estate and gold more attractive relative to purely financial assets. Third, the momentum of real estate prices has attracted speculators who seek to flip homes for easy profit. So a home is not only a home to Indian buyers; it is a means to attain surest financial affluence and prosperity. Buying a home is not easy, be it for investment purpose or for personal living. It involves taking a lot of decisions and putting much effort in selecting that particular piece of property which would suit one’s personal choice and preferences. What are those aspects that influence the buyers’ decision? Is it the location of the plot or the builder’s repute that matters most to the purchasers? Do they aspire to buy apartments in developed, urban areas, or are the futuristic locations more appealing to them? At the same time it is important to understand the voice of today’s youth , who shall form the key segment for real estate developers in the next few years. It is in order to get the answers of all these questions that we at Foreseegame decided to carry a survey on the real estate scenario of India that sought to delve deeper into the buyers’ psyche. The survey results will be useful to the developers of real estate in gauging their customers’ mindset and approach. Foreseegame.com is a unique portal of consumer engagement, which provides a platform for two way communication and engagement between the brand and the consumer using games of foresights. Microsec research is the research wing of Microsec Capital having experienced analysts across the sectors.

Executive Summary



We used the online feedback from the users of www.foreseegame.com. The users have been registered only on the basis of unique mobile numbers and hence, it provides authenticity and genuineness of the participants. The participation is being monitored by Google. About 33,000 participants have contributed from all parts of India; however the limitation of this sample is that it is from the group of people who are users of internet.

Executive Summary

The take away points: 1. Builder’s repute is the biggest concern for the prospective buyers before selecting

a property. 81% of the participants have said that they would consider the repute of the builder while booking an under-construction flat.

2. It is not just the decision of the seniors in the Indian families that matter most while buying a residential flat. In fact, 58% of the participants said that it would be a combined decision of the whole family where the opinion of children and youth would be given preference. 24% and 18% of the participants, however, have left the decision on the elders or the head of the family respectively.

3. Getting accurate and in-time information is a must in order to select that perfect property. 53% of the participants said they would refer to advertisements posted in newspapers and digital media. In fact, digital media is fast gaining ground as the medium of choice for the new age Indian with 23% of the respondents opting for this medium to look out for their dream property. Another 38% of the participants said that they would get in touch with real estate brokers for accurate information.

4. Divine assistance is necessary for Indian property buyers while booking a new home. A mammoth 78% have said they would consider the Vastu factor while buying a residential flat. Only 22% are oblivious to this factor.

5. Digital media display of your property can work wonders for your brand. A majority 82% of participants said they would like to see the model flat and take a virtual tour on digital media before actually booking it.



6. Though it is perceived that the current economic scenario is impacting the mood of consumers, there lies a strong opportunity in the affordable housing segment. While 40% of the respondents do not have a plan of making new purchases in next three years, there is a massive demand in the affordable housing segment with 28% respondents willing to buy a home worth up to Rs.25 lakhs and another 21% wanting to purchase houses in the range of Rs.26-50 Lakhs, resulting in a pool of 49% consumers willing to make purchases in the affordable housing segment. This by itself, presents an amazing opportunity as every second youth seems to be looking out for an affordable housing property.

7. The brand of lifts that has been installed in the apartment holds a major importance for Indian buyers. A mammoth 77% have chosen branded lifts like Mitsubishi, OTIS and Schindler and other brands. Of these three brands, 31% and 22% of the participants have chosen Mitsubishi and OTIS respectively. Schindler and all other brands have got 12% vote each. Only 23% said that the brand of the lift does not matter to them.

8. Indian buyers consider all the available amenities while purchasing a new flat. 65% of the participants said that they would buy a new flat purely on the basis of amenities like easy transportation, availability of schools and hospitals etc. 10% would like to stay close to their existing location while 11% would stay close to their friends and relatives. 13% of participants, however, would like to stay closer to their workplace and would buy a flat near to that place.

9. Ivory is the most preferred colour when it comes to painting the exterior elevation of the building. 31% of the respondents have chosen ivory. Pink comes in second with 11% vote share. Blue and orange received 9% vote each. Violet, yellow, green, red, brown and purple have got a total of 29% vote together. 11% vote has gone to other colours.

10. Commutation is very important for the real estate buyers while choosing a particular property. 35% of the participants have chosen public bus service as the preferred mode of transportation while 25% have chosen metro railways. 39% have chosen local railways, taxi, auto and drive-worthy roads for travelling.

Executive Summary



Q 1. Do you consider the repute of the developer while booking an under construction residential flat?

Builder’s repute is the biggest concern for the prospective buyers before selecting a property. A whopping 81% of the participants have said that they would consider the repute of the builder while booking an under-construction flat!

Q 2. Who is the decision maker in your family while buying a residential flat?

58% of the participants said that it would be a combined decision of the whole family where the opinion of children and youth would be given preference.

58% 24%

18% It is the decision of the entire family whereinopinion of children and youth matters most

It is the decision of the elders of the family

It is the sole discretion of the head of thefamily

81%

19% Yes

No



38% of the participants said that they would get in touch with real estate brokers for accurate information. 30% have opted for newspaper advertisements while 23% have chosen digital media.

Q 3. Where do you look first for the information while buying a residential flat?

Q 4. While buying a new house, would you consider the vastu factor?

78%

22%

Yes

No

A mammoth 78% have said they would consider the Vastu factor while buying a residential flat.

38%

30%

23%

9% Real-estate broker

Newspaper advertisement

Digital media

Any other



Q 5. Would you like to see the model flat and the virtual tour on digital media before buying a residential flat?

Q 6. What would be your budget if you are planning to buy a flat in next 3 years?

A majority 82% of participants said they would like to see the model flat and take a virtual tour on digital media before actually booking it.

28% will buy the second flat with a price tag up to Rs.25 Lakh. For 21%, the budget is up to Rs.50 Lakh. Hence, with a combined 49%, this reflects a massive underlying demand in the affordable housing segment!

82%

18% Yes

No

40%

28%

21%

7% 4%

We don't have any plan

We plan to buy a flat upto Rs. 25 Lakh

We plan to buy a flat upto Rs. 50 Lakh

We plan to buy a flat upto Rs. 1 Crore

Above Rs. 1 Crore



Q 7. Which brand would you prefer for the elevator (lift) of your residential apartment?

Q 8. Apart from the budget, which of the following factors do you consider while choosing the location for your residential flat?

A mammoth 77% have chosen branded lifts like Mitsubishi, OTIS and Schindler. Only 23% said that the brand of the lift does not matter to them.

65% of the participants said that they would buy a new flat purely on the basis of amenities like easy transportation, availability of schools and hospitals etc.

31%

23% 22%

12%

12% I prefer Mitsubishi

Brand of the lift does not matter to me

I prefer OTIS

I prefer any brand other than OTIS, Mitsubishi and Schindler

I prefer Schindler

65% 13%

11%

11% I prefer to buy purely on the basis of available amenitiessuch as transportation, school and hospitals

I prefer to buy nearby my working place

I prefer to buy in the location where my friends &relatives stay

I prefer to buy in my existing location



Q 10. Which mode of transportation do you consider while buying a residential flat?

Q 9. Which colour would you prefer for the exterior elevation for your building?

31% of the respondents have chosen ivory as the most preferred colour. Pink has become the second favourite with 11% vote.

35% of the participants have chosen public bus service as the preferred mode of transportation while 25% have chosen metro railways.

31%

11%

11% 9%

9%

7%

5%

5%

5% 4% 3% Ivory

Any other

Pink

Orange

Blue

Violet

Green

Purple

Yellow

Brown

Red

35%

25%

19%

11%

5% 5% Public Bus

Metro Railway

Good road for driving a car

Local Railway

Taxi

Auto

Affordable Housing

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