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Press release

28 JUL 2019

Brand reliability & trustworthiness leading factors for home buyers

RICS, in association with international property consultant Knight Frank, has released a new report, Affordable Housing — Know your Customer, which captures findings from a recent survey of homebuyers across 15 cities in India. It's aim was to better understand the expectations of urban end users for ideal affordable housing.

Homebuyers ranging from ages 23–66 were surveyed. The engagement methods primarily used were Focus Group Discussions (qualitative research) and Structured Questionnaire-based interactions (quantitative research).

Housing is one of the most fundamental demands that influence quality of life. Access to acceptable living conditions is an elementary human need, which affects individuals at many levels as it provides shelter, safety, security and for most of us represents the most significant investment that we will ever make during our lifetime.

The affordable home segment offers great potential, which is yet to be fully explored. This segment will definitely perform better when affordable housing projects 'on-ground', while catering to the needs of customers on security, safety and lifestyle attributes, are successfully executed and energies stay focused on delivering these within the promised cost and timeframes.

Nimish Gupta FRICS, Managing Director, South Asia, RICS

Key findings

  • While purchasing an affordable housing property, product quality ranked as the 1st key parameter followed by brand name.
  • 80% of homebuyers put cost as the top most consideration while buying a home followed by safety and security for 71% for homebuyers
  • 52% of homebuyers highlighted parking space as a major gap in terms of their requirements in their current residences, followed by adequate security, playground and availability of public transport accounted for 43% each.
  • 53% of homebuyers said that self-use is the main purchase driver. While 48% highlighted better location and 44% expanding family size, amongst others as important drivers for their decision to buy houses.
  • As per Knight Frank's market survey, customers perceive these brands as the top 10 developers providing affordable housing: Provident Housing, Mahindra Lifespaces, PS Group, Prestige Group, Lodha Group, ATS Homekraft, Signature Global, TATA Value Homes, Godrej Properties, Ashiana Group.

Customers of affordable housing are highly "value conscious" and since they normally buy a house once in their lifetime, the focus is more on developer credibility.

Today, when most stakeholders in the real estate sector are boarding the affordable housing bandwagon, they need to first understand their consumers before converting their ideas into reality. This explicitly explains why few of the affordable housing developers, who are keeping customer preferences at the forefront, are succeeding in this sector while others are not.

Shishir Baijal, Chairman and Managing Director, Knight Frank India