In some markets, buyers said they will not consider buying a property from the same developer, clearly giving an indication that they are not satisfied with their developer.
In today’s time, customer satisfaction is of paramount importance for most companies providing a product or any service to people. Therefore, in order to understand how consumers felt about their product from their respective developer, property consultant ANAROCK recently asked the property buyers – “Given a chance, will you consider buying again with the same developer with whom you bought your last property?”
Surprisingly, only 52% of the respondents seemed satisfied with their earlier-bought home, while 48% buyers said that if given a chance, they will not buy a property from the same developer. The response, however, varied from city to city.
At the city-level, a majority of respondents (about 68%) in Delhi-NCR, for instance, said they will not consider buying a piece of property from the same developer, clearly giving an indication that they are not satisfied with their developer.
“It is no surprise that buyers in this region have been left at the mercy of their developer’s whims and fancies. Also, other factors that could be preventing buyers is either due to project delay or a compromise with quality. Many homebuyers in NCR incessantly complain of the quality of their homes. Similarly, in Kolkata too, more than 63% buyers will not consider buying a second property from the same developer,” says Anuj Puri, Chairman, ANAROCK Property Consultants.
In Hyderabad also, about 52% buyers would avoid buying a piece of property from the same developer. On the contrary, end-user driven markets such as Bangalore, Pune and Chennai seem to be satisfied with the developer as a greater number of respondents will buy their second home from the same developer if given a chance. “This suggests that there is more professionalism in these markets with developer giving close to what they promise,” the survey stated.
Whatever be the case, as per ANAROCK’s Consumer Sentiment Survey H1 2019, Indian real estate sector is in a sweet spot now due to the new reformatory environment marked by greater transparency and efficiency. This is extremely beneficial not only for developers but also for the homebuyers. Positive buyer sentiments, favourable macroeconomic conditions and better-valued products at the right location have prompted approx. 24% of the respondents to successfully purchase a property over the last few quarters. This is followed by 35% of the respondents who are looking buy a home within the next six months.
The rise in consumer sentiments was further validated by the declining number of unsold stock. As per ANAROCK data, the unsold inventory across the top 7 cities declined by 7% to 6.73 lakh units in Q4 2018 as against 7.26 lakh units in Q4 2017, indicating that due to the overall positive sentiments among home buyers, those sitting on the fence since long have ultimately taken the plunge. Interestingly, 25% respondents will buy within 2019 itself. However, there are still 16% respondents who are confused and thus hesitant to make an informed decision about investing in real estate in 2019.
One of the major deterrents for prospective buyers was the high GST rates. However, in a recent development, the government slashed the GST rates of under construction properties to 5% without ITC for premium properties and merely 1% without ITC for affordable homes. This is likely to attract more buyers to make a property purchase and thereby boost up housing sales. “Another booster for the real estate sector was offered in the interim budget in February wherein the government offered multiple sops to both affordable buyers and investors as well. This is likely to bode well for the overall residential sector in 2019, provided a new stable government is formed at the Centre who takes on the baton of change further,” the report reveals.