Millennials keen on earning rental income: Study
As many as 52% of aspiring homebuyers, especially the millennials, are keen on buying their first homes for rental income rather than opting to stay in a rented property, reveals a study by Anarock Property Consultants ‘Real Estate Consumer Outlook: H2 2018’.
Buyers are also positive of the real estate’s improving transparency, discipline and accountability post implementation of regulatory policies, indicates the study.
Commenting on the survey, Anuj Puri, chairman of Anarock Property Consultants says that with the discernible impact of RERA, demonitisation and GST, housing sales are seeing an upward trajectory in 2018. “New launches have also gone up this year with affordable housing sector witnessing a significant growth. NRIs see India’s real estate market environment conducive enough to invest in properties, especially with the rupee value depreciating .”
New millennials are focused on home purchases rather than renting. “In fact, 52% respondents lean towards this specification. Young professionals prefer to buy homes in locations close to their workplaces and are choose homes small enough to be affordable both on base cost and maintenance,” adds Puri.
The survey also reveals that besides real estate, the stock market and mutual funds have overtaken fixed deposits to become the 2nd most-preferred asset class for investment. Around 23% respondents favour stock market and mutual fund investments, followed by fixed deposits with just 14%. Gold has lost its sheen as an investment option in most metros except the southern cities of Chennai and Hyderabad.
New consumers now rule the previously investor-driven realty market and have the upper edge in the strengthened regulatory environment. Investors are ready to exit the market even at lower profit margins.
Developers are now aware that apart from various other factors, the influence of social-media has put buyers in the driver’s seat and customer satisfaction cannot be compromised during and after sales.
Moreover, attempting the trace the trend of buyers and the features in real-estate they are opting for, the survey highlights the following statistics: Nearly 69% prospective buyers are looking to buy property for end-use. 84% first-time are looking for homes which are either readyto-move-in or slated to complete in the next six months. Ready-to-move-in properties are garnering maximuminterest from buyers who prefer fully-furnished homes. Buyers continue to perceive risks associated with newlylaunched projects in terms of delays and shady dealings by developers. 61% property seekers are abandoning their prolonged waitand-watch mode and are looking to buy a property within a year. As many as 24% will take the plunge and buy their property immediately, while 61% are looking to buy within the next one year.