Consumers in Delhi have the lowest propensity to buy properties, while sentiment in Mumbai is highly positive, according to a study. TRA Research’s Buying Propensity Index (BPI) is a syndicated study, which surveys 3,000 consumer-influencers across eight cities in India conducted every quarter.
The BPI measures the transactional, aspirational and environment sentiments towards making buying decisions and is a direct measure of propensity to buy. The BPI value can range between -1 and 1, ranging from a completely negative sentiment to a fully positive Sentiment.
“With regard to the city-wise BPI, the highest Buying Propensity was seen in Mumbai with Q4 BPI at 0.58 (Highly Positive) and Pune with Q4 BPI 0.54.
“The lowest propensity to buy was seen in Delhi with BPI at 0.27 and Ahmedabad with BPI at 0.30, showing extremely low propensity for purchase,” the research firm said in a statement.
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The BPI for the quarter ending March 2017 stood at 0.42, a fall of 16 per cent over Q3 which was at 0.50.
“December, the month after demonetisation, had witnessed a sharp fall to the lowest BPI at 0.26 in the months since April 2016. Prior to that, there had been a steady climb in BPI from June at 0.37 to November at 0.68,” it said.
January 2017 witnessed a noticeable rise to 0.47, the highest in FY17 and there has been a continuous fall of the propensity to buy in subsequent months, with February 2017 showing 0.43 on lesser-than-expected relief in the Union Budget.
The Buying Propensity Index fell further to 0.35 in March, a slip of nearly 20 per cent.
Commenting on the findings, N Chandramouli, CEO, TRA Research (a Comniscient Group Company), said there is a clear indication that the worst of the demonetisation effect is over.