News: Residential housing sees green shoots with end-users looking for houses: Report-08-08-2020

https://www.hindustantimes.com/gurugram/residential-housing-sees-green-shoots-with-end-users-looking-for-houses-report/story-4qj2b0ivUAPvoIed32HWFJ.html

With the economic activity resuming following the 68-day lockdown that ended in May, real estate activity in the city has started showing signs of recovery in the residential segment with property enquiries reaching 60 to 65 per cent of pre-Covid level, according to a report by private real estate consultant Anarock.

The report states that there was also an increase in conversion rate (how many of those who enquired for a property actually bought it)-- from nearly five percent earlier to 10 percent in Gurugram.

Most enquiries were for properties priced between ₹75 lakh to ₹1.25 crore for sizes 1,400-1,600 sq ft built-up area. Gurugram-based developers and consultants said that affordable properties (between ₹15 lakh to ₹30 lakh) were seeing good traction and 30 per cent demand for affordable housing was from investors, while 70 percent were from end-users, the report said.

The report said that, across the country, most buyers preferred ready-to-move-in homes and that salaried professionals and employees from IT/ITeS, pharma, manufacturing industries and government employees were driving the demand.

Prashant Thakur, director, Anarock property consultants, said, “Despite site visits far below previous levels, the site-visit-to-closure conversion rate has increased considerably as only serious buyers are venturing out.”

The report further said that in terms of the preferred budget range, homes priced between ₹40 lakh and ₹1.25 crore now attract a major chunk of the buyer enquiries.

Bengaluru, Chennai, Ghaziabad and Noida are now seeing the most enquiries for homes in the under-₹1 crore category.

Pradeep Agarwal, MD of affordable housing company Signature Developers, said that their recently launched projects in Gurugram and on Sohna road were attracting customers. “In July alone, 3000 flats were alloted and not even one per cent allottees surrendered their homes. Around 2,500 flats were launched last month and most were booked by end users in affordable category,” he said.

Property consultants also said that they are seeing more enquiries from end-users, who want to have a look at the property and decide on taking it up.

Kamaljeet Singh, vice president, Bestech Ltd, said that there has been an uptick in sales and enquiries in last one month. “Home buyers are ready to make visits, look at different properties, but what they want is finished product, which they can see and feel before they buy it,” he said.

Vaibhav Jaiswal, a city-based real estate consultant, said that sales of only completed apartments and houses are happening and buyers are showing interest for projects between ₹90 lakh and ₹1.25 crore. “Things are slowly improving but it will take time for situation to normalise,” he said.