An ET Wealth survey shows a lot of people plan to buy property in the next one year
After a hibernation lasting nearly five years, home buyers are planning to go shopping again. More than 60% of 1,181 respondents to an online survey say they are likely to buy property in the next 12 months. The survey, was conducted after the RBI cut rates. More than 16% of the respondents say they plan to `definitely buy' real estate in the next one year . “Many fence-sitters have realized that it makes sense to buy a home now, when prices have not risen too much,“ says Anuj Puri, Chairman & Country Head, JLL India.
The bullishness is more pronounced in cities such as Hyderabad and Pune, while buyers are not so keen in NCR and Bangalore, where high prices and huge inventory have dampened demand. However, buyers are not rushing in with eyes wide shut. They are acutely aware that in the coming years, returns from real estate may not be able to match those from other asset classes. “Over the next one year, the appreciation of real estate prices will, at best, be inflation-linked,“ says Samir Jasuja, Managing Director and CEO of realty portal PropEquity .
Returns from real estate also tend to be jerky. Therefore, investors should not go for property if their investment horizon is less than five years. Our survey shows that more than half (53%) of the respondents will buy property only for their own use, and 19% will buy it as investment. There is another 18% who will buy for both own use and investment.
Buyers are also mindful of project delays. This is why a significant majority (66%) want to buy ready-to-move-in properties, and only 22% are willing to consider under-construction flats or prelaunch offers. Even though the Real Estate Regulation Act, 2016 has been passed, not many people are aware of how it will make a difference. Barely 35% of the respondents feel that the Act will protect the interests of buyers.
Seeing the surge in buyer interest, we reached out to experts to find out what people should keep in mind when they purchase property. We list out smart moves that can help buyers get the maximum bang out of their bucks.
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