59% Homebuyers Looking for Ready Homes Are Millennials

By LODHA

The on-going crisis has made many realize that owning a home ensures safety and security for oneself and the family. Modern investment instruments like mutual funds, stocks, equity have witnessed severe volatility. In these uncertain times, selecting a conventional investment option like real estate is the smartest choice. 

Home buying is an extremely challenging decision, but with the current market scenario and other RBI norms, this is a perfect time to take the leap and make that purchase. With one of the lowest interest rates -- ranging between 7.15% and 8.05% -- in the last 10 years, real estate has never been this attractive to potential homebuyers. Additionally, many developers are sweetening the deal with offers like the lowered booking amount and discounts up to 10 - 20 % on the flat rates. 

Amidst all these lucrative offers, it is essential to understand the pandemics' impact on the sector and choose a property that ensures maximum returns. Daily wageworkers' migration has halted the majority of construction activities, further delaying the delivery of under-construction projects. The relief package announced by the government on real estate has given RE players six months' extension. Along with that, RERA in individual states can offer three additional months' extension, which will further delay the completion of under-construction projects. 

With these factors in play, homebuyers can always choose from the existing ready homes options to fulfil the dream of homeownership. Various studies done in recent time's show how consumer behaviour is evolving and ready to move-in homes are becoming the preferred lot. A study done by Anarock indicates that of the total 6.44 lakh-unsold homes in India nearly 12% are completed and ready. Homebuyers in Pune and Mumbai have good options across segments to choose from in the current market scenario.

A recent consumer research done by Lodha Developers with active home seekers in Mumbai region during the lockdown showed 63% of the respondents are keen to invest in ready homes. 80 per cent of respondents' who preferred ready homes opted for it because one could see the finished property and pay for what they see, 76 per cent said it ensures no double expense of paying rent & EMI and 73 per cent were lured because ready homes attracted 0% GST. 

Additionally quoting on-ground experience, our development in Thane region saw growing demand for ready homes from 28% in January 2020 to 85% in May 2020.  The most striking insight, 59% of the respondents planning to buy within a year is millennial.  This outlines how the pandemic has modified the consumer thinking pattern, as millennials preferred living asset-light till recent past. 

Ready to move homes eliminate uncertainties, and one can move into the property within months. In such a changing market, a consumer can see the final property and check the quality, development, and location, being sure of what one invests in without any ambiguity. Amidst these demands, quality projects are getting first preference.

Many reputed developers have received inquiries even during the lockdown, and we have observed that buyers are interested in transacting when given confidence of delivery and quality. In fact the report also enlightened that consumers looking for under construction are more than willing to switch if they had flexible payment plan option and lower down payment. 

These consumer feedback coupled with the thought of giving back to the nation gave rise to originating Apna Ghar Apna Desh initiative that struck a chord with our home-buyers. In fact 85 percent of the homes sold by Lodha Developers during the lockdown have been ready to move in projects, which is yet another testament to the growing demand for ready homes. 

With people starting to spend more time at home and work from home (WFH) becoming more prevalent, having a good quality home in a well-maintained development with good amenities and infrastructure has become increasingly important. Renters have also seen the difference in the attitude of Resident Welfare Association's (RWA's) towards renters vs. homeowners and this has also made them more eager to buy their own home. 

Article authored by Prashant Bindal, Chief Sales Officer, was published in ETNOWNEWS