Mil­len­ni­als keen on earn­ing rental in­come: Study

Hindustan Times (Chandigarh) - Estates - - ESTATES - Anuj Puri n ht­spe­cial­pro­jects@hin­dus­tan­times.com The au­thor is the chair­per­son of Anarock Prop­erty Con­sul­tancy

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.

TRACINGATREND?

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.

IS­TOCK

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