Cash crunch squeeze on home buyers
The budget for a new home is shrinking; there are more people looking to rent a house than buy one; and fewer buyers are picking up property for the purpose of investing, writes Tanya Ashreena.business Updated: Oct 27, 2008 01:28 IST
The budget for a new home is shrinking; there are more people looking to rent a house than buy one; and fewer buyers are picking up property for the purpose of investing.
This is the story that realty portals tell.
As the impact of the global financial crisis trickles down India’s property market, online realty brokers say they are seeing significant changes in preferences of visitors on their websites.
Unlike a year ago when many people would check out deals online for the purpose of investment, most home buyers today are seeking details of property that they would actually use for their stay, said Naresh Malkani, chief executive of indiaproperties.com.
The liquidity crunch and high rates of interest on home loans have also affected the price ranges of the properties searched for.
“Earlier, the Rs 45-70 lakh segment was the most sought for. Now queries are geared more towards affordable housing in the Rs 25-40 lakh segment,” said Prashan Agarwal, business head, allcheckdeals.com.
Also, there is a shift from the purchase of property towards rent.
“In the past quarter, while makaan.com saw queries relating to rent of property rise by 19 per cent, it observed a 16 per cent decline in queries relating to purchase of property,” said Aditya Verma, business head of the portal.