Saturday, December 31, 2011



The year 2011 can best be described as a lackluster year for Indian real estate sector. There were several headwinds that prevented the sector from delivering to its full potential. High property prices and rising home loan interest rates kept the home buyers away from the property market. Property transactions in major Indian cities were down by 20-40% for the year.

As we move into 2012 there are several un-answered questions. Where does the property market go from here? What is the current psyche of home buyers? Is it still a seller’s market or buyers will dominate the market movement? Is affordable housing still the top priority, when the common man goes home shopping? Which is the hottest destination for investing in real estate in 2012? To get an insight into these and many more issues,, the fastest growing online property website, conducted a survey among its users.

The survey christened “Property Trends 2012” ran on the website between 27th November to 15th Dec 2011, witnessed a voluminous participation of 4430 home buyers from across the country including cities of Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh & more. Most of the survey takers were male, in the age group of 26 – 45 years. The major findings of the survey are highlighted here

Higher tax rebate &; Carpet area are most desired reform of 2012
Property Trends 2012 asked home buyers to give an advice that would bring a positive impact on Indian realty sector in 2012, nationally, 29% people wish for an increase in income tax exemption limit, on repayment of interest on home loan, from current 1.5 lac p.a to 3 lac p.a. Next advice from the home buyers is to resolve the constant conflict of Super area Vs Carpet area. 27% of home buyers want the developers to charge on the Carpet area rather than Super area. They believe this will bring more transparency, as Carpet area is measurable as against the latter which in most cases is ambiguous.

Home buyers expect the home loan interest rates to fall in 2012
As far as purchasing a home is concerned; arranging funds becomes the most critical aspect. Usually home buyers rely on home loan for making a property investment. In the recent past RBI has increased the benchmark REPO rate 13 times in the past 18 months. Home buyers seem to believe that RBI is at the end of the interest rate increase cycle, majority 41% expect the home loan rates to fall in 2012.

End user demand to drive property market in 2012
2012 is going to be a year that will be dominated by end users. Home buyers seem confident for making a property purchase in 2012 with some help, in the form of a price correction & softening of home loan. We asked home buyers on the main reason for buying a house in 2012.

To read the full report: PROPERTY TRENDS 2012