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Realty check: Homebuyer’s expectations from 2011

Money Control
Realty check: Homebuyer’s expectations from 2011 - home buyers - property market - analysis

The year 2010 can be considered as a mixed year for the Indian real estate sector. The industry displayed some positive signs of revival with homebuyers & investors coming back to the property market on the back of a higher consumer confidence and the promise of sustained GDP growth. This lead to hardening of the property prices in the beginning of 2010. The home prices moved up at a brisk pace during Oct 2009 to March 2010. The sudden and steep rise in prices created a fear in the mind of the genuine homebuyers and they adapted a wait and watch approach during the second half of 2010.

The year 2010 also saw RBI tightening the flow of “easy money” into the Indian real estate sector. Steps like increase in risk weight age on bank lending to realty companies, ending the teaser home load regime, higher provisioning for home loan above 75 lac and RBI’s overall guidance towards high interest rate regime brought some sanity in the property market. The end of 2010, exposed glaring gaps in the procedure adopted by some banking officials in sanctioning loans to the realty companies. This disclosure by CBI along with RBI interventions kept the property prices under check for the second half of 2010 and prevented a potential bubble from being formed.

As we move into 2011 there are several un-answered questions. Where does the market go from here? What is the current psyche of home buyers? Is it still a seller’s market? Is the affordable home still top the priority when the common man goes home shopping? Which is the hottest destination for investing in real estate in 2011? To ascertain all such trends, Makaan.com, the fastest growing online real estate website, conducted a national survey for Metros and Tier II cities of India. Christened Property Trends 2011 - the survey was conducted online in the month of Dec 2010 (between 1st & 20th Dec 2010). It saw participation from over 4700 home buyers who were in the age group of 26-45 years.

The major findings of the survey are highlighted here

Home buyers want more tax rebate on repayment of housing loan


Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.