49 pc look for sub-Rs 60 lakh option: Magicbricks’ report

The April-June 2015 edition of PropIndex report takes a closer look at buyer’s expectation in the present real estate market through an in-depth Consumer preference analysis. It reveals that at the national level, almost half 49 pc of the consumers are looking for options in the sub-Rs 60 lakh segment.

The report says within this budget range, the share of consumer preference in the sub-Rs 50 lakh segment is 75 pc. Preference for lower budget segments is reinforced by the fact that 47 pc consumers are looking for 2 BHK unit options. With 60 pc of 2BHK units’ supply in 900 – 1,200 sq ft saleable area range, the relatively smaller size (sq ft) of 2BHK format helps the consumers to keep the acquisition cost low at different price points (INR/sq.ft).

Commenting on the findings of the report, E Jayashree Kurup, Head – Content & Research, Magicbricks said, “The report highlights that while consumer interest is focused in the lower budget categories, the supply-side is catering to higher budget segment. The propensity to introduce more units in 3BHK format exacerbates the situation as its larger size increases the total acquisition cost and takes it beyond the consumers’ budget range. There is a case for supply side to better align itself with consumer preference. While aspects like property price will take time to sort out, developers can address consumer preference for the lower budget by designing smaller yet smart dwelling units.”