The year 2014 began with anticipation among the real estate fraternity regarding the general elections in the country. Then came ‘The Day’ when, with a clear majority, BJP tsunami swept the entire nation. Several interesting events preceded soon after which raised people’s expectations from the Modi government. Plagued by the economic malaise, the markets suddenly showed signs of revival with Sensex appreciating past 25K mark and the rupee recovering against the US dollar. Further, the new government in its maiden budget opened a jackpot for realty and infrastructure sector and set the stage for ‘acche din’ ahead. In line with the progressive manifesto of BJP, which largely spoke of Housing for All by 2022, a mammoth budget of Rs 4,000 crore was allocated for affordable housing.As part of ‘Real Insights’ into real estate, CommonFloor.com recently conducted a survey to understand property buyers’ sentiments- Real Estate Outlook: H1 2015.Here are the highlights for you.

1. Consumer Expectations
From Real Estate In 2015

3. The Modi-era is definitely generating a wave of optimism
in the country. CommonFloor conducted a comprehensive
survey which makes an analysis of what consumers
want/expect from Real Estate In 2015. Here are the
highlights for you.

4. In line with market sentiments, consumers
also displayed positive sentiments.
About 46% consumers believe that the
current macro economic environment is
‘Ok’ while 42 % were optimistic and
believe that the current market situation is
‘good’ for overall growth and development
when compared to the year 2014.
#1
How is the current macroeconomic environment
for overall growth and development compared to
2014?
42%
46%
12%
Good OK Bad
*The graph indicates percentage of Consumer Responses*

5. From time immemorial, investing in Real
Estate has been promising and most
profitable. The tradition still continues
and will bound to remain an attractive
investment option in coming years as well.
Out of five asset class investments, Real
Estate evolved as a showstopper with
about 41% voting for it as the best
investment option in 2015.
Which would be the best asset class investment
in 2015?
41%
26%
13%
12%
7%
RealEstate Stocks Mutual Funds Fixed Deposits Gold
#2
*The graph indicates percentage of Consumer Responses*

6. The year 2014 saw major breakthroughs in
terms of policies initiated by the Modi
government. To accomplish the ambitious
dream of ‘Housing for All by 2022’,
several policies saw the light of the day.
As government encouraged savings by
increasing the limit for PPF and other
measures, over 40% respondents feel that
these new policies and directives will result
in more purchase in the coming year.
Will the new initiatives by the Modi Government
result in more home purchases in 2015?
42%
38%
20%
Yes Maybe No
#3
*The graph indicates percentage of Consumer Responses*

7. With real estate evolving as the best asset
class for investment, when consumers
were asked whether they will invest in
property in 2015 , more than half of them
– 52% said ‘Yes’, while about 30% were
not yet sure. However, for about 18%
respondents, there was a subdued feeling
of uncertainty in the market.
Would you prefer to invest in Real Estate
in 2015?
52%
30%
18%
Yes Maybe No
#4
*The graph indicates percentage of Consumer Responses*

8. Unlike conventional market trends, for the
first time in our survey, plots emerged as
most preferred property type for
investment with about 48% respondents
voting for it. While plots do score better
over other property types for better returns,
this remarkable trend also indicates that
buyers are now investing with mid-to-long
term investment horizon.
Which is the most preferred property-type for
investment according to you?
48%
30%
6%
7%
8%
Plots Apartments Villas/Row Houses
Independent Houses Commercial/Rental
#5
*The graph indicates percentage of Consumer Responses*

9. For about 45% within Rs.40 lakh is the
preferred budget, followed by Rs.41-70 lakh
for 33% of consumers. This clearly indicates
that buyers are more inclined towards a
regular apartment with necessary amenities
instead of plush residences. Taking a cue
from this, several developers have also set
their foot for launching affordable projects.
What is your expected budget for property
investment in 2015?
45%
33%
14%
8%
Within 40 Lakh 41 Lakh - 70 Lakh
71 Lakh - 1.2 Crore Rs.1.2 Crore onwards
#6
*The graph indicates percentage of Consumer Responses*

10. With the market getting back on track, about
40% respondents think that realty prices will
appreciate at a steady pace over the next few
months. However, a good 30% are
envisioning a significant drop, while another
30% believe that prices will remain stagnant
and will not see any significant movement.
Do you expect real estate prices to appreciate
in the next few months?
40%
31%
29%
Yes Remain Stagnant No
#7
*The graph indicates percentage of Consumer Responses*

11. Today’s well-informed buyers’ no longer
aspire for exorbitant returns from their
property. Nearly 48% respondents expect
upto 10% annual returns from property,
followed by 36% respondents who expect
upto 20% returns on their investments.
Considering the current market situation,
annual returns anywhere in the range of 8-
15% considered healthy.
What are your expectations of annual ROI from
Real Estate in the coming year?
48%
37%
12%
4%
Upto 10% 11 - 20% 21 - 30% 31% and above
#8
*The graph indicates percentage of Consumer Responses*

12. For 41% respondents, Tier I cities are
most preferred destinations for property
investments. While this has always been
the case, it is interesting to note that about
32% respondents showed interest in
upcoming smart cities. Tier II cities that
were once doing the rounds in the market
just garnered interest of 26 per cent
respondents.
Which will be your most preferred destination for
property investment?#9
41%
27%
32%
Tier 1 cities Tier 2 cities
Smart Cities
*The graph indicates percentage of Consumer Responses*

13. While metros garnered maximum interest,
Ahmedabad and Vijayawada also received
significant interest with about 15%
respondents voting Ahmedabad and 14% for
Vijayawada. Other cities that are likely to see
realty growth include Varanasi, Jaipur, Indore,
Kochi, among others.
Which city, in particular, is likely to witness
maximum realty growth in 2015?
51%
15%
14%
6%
6%
3%
2% 2% 2%
Metro cities Ahmedabad Vijayawada Varanasi Jaipur
Indore Vadodara Lucknow Kochi
#10
*The graph indicates percentage of Consumer Responses*

14. Get Detailed Insights On Property buyers’
Sentiments On Real Estate Outlook here

16. CommonFloor.com is India's leading property search portal.
On a mission to make property search hassle-free, transparent and fruitful;
CF has best of breed property search on maps, property search mobile apps and
an extensive section for knowledge resources and advice in real estate.