Hyderabad residents demand more sub 40 lacs properties

77% of property seekers are looking at homes below 40 Lacs budget.
43% of property seekers expect further correction in prices

To ascertain the current preferences of the property seekers, Makaan.com – the fastest growing online real estate portal conducted a real estate trend survey in metros and the tier-II cities of India. The survey was conducted on Makaan.com from Dec 4 – 22, 2008, with 13426 property seekers participated in the survey nationally, out of which 819 were from Hyderabad. The survey looked at gauging opinion and mood of the property seekers, on the real estate topics and throws the following trends and figures.

Increasing preference for affordable housing – upto 20 lacs segment most in demand in Hyderabad

• 77% property seekers prefer homes below 40 lacs
• 46% property seekers prefer homes upto 20 lacs
• Localities which offer sub 40 lacs homes include JNTU, Medinaguda, Tellapur, International Airport, Chanda Nagar, Sri Sailam Highway and Gochibowli.

Why property seekers are playing the wait and watch game – A direct effect of the meltdown

• 43% property seekers from Hyderabad expect further price correction in the coming months
• 13% holding back property decisions due to prevailing job insecurity
• 8% are deferring their decision due to high home loan interest rates, hoping it will come down further

• 30% of the respondents’ decision to hold back is influenced by all of the above

Home loan rate of 9% looks comfortable feels Hyderabad seekers

• 60% of seekers were comfortable at a home loan rate of 9%
• 10% wanted the rates to be between 7-8%

Based on the step taken to the government to offer home loan rate of 9.25% for amount under 20 lac, Makaan.com anticipates a revival in demand for properties less than 30 Lacs. Commenting on the findings, Aditya Verma – Business Head Makaan.com says, “The current supply in sub 30 lac housing segment in Hyderabad is low. With the expected revival in demand, we can expect an end in price correction in this segment. However, the correction will continue in higher price segment, at least for now”.

Developers in Hyderabad need to rethink their pricing strategy, and focus more on the sub 40 lacs segment to bridge the demand – supply gap and bring the much needed bounce back in the real estate market.

source: Makaan.com