IS NCR HAS BECOME BUYER'S FRIENDLY? NEW BUZZ WORD "AFFORDABLE"

The most of the residential projects being launched since last three months has price tag below 35 Lakh, Is it really working for end user/buyer in NCR? The question is also there what is the quality of the product, delivery time? What is really meant by the buzz word Affordable? Why every builder want to present is project as affordable? Is everyone trying to catch the pulse of the real estate market? Creating an attraction for real buyer who is in wait and watch mode.

The developers are trying to hit the Affordability quotient of middle class end users in their quest for their own sweet homes. The fall in the interest rate to
around 9.5% on home loans up to Rs 30 lakh has further added to this factor. As per the market resources the project with this price tags are taken hand in hand by the buyers and almost 70% queries are being converted in real deal if buyer is convinced. The buyer is being allured by the price tag only mainly no one is emphasising on the features of the projects, specification of construction which was the earlier trend. As per market around 80% of the project lauched has price tag of around 30-35 Lakh, it seems this has financial quote has become as threshold of the affordable word. The developers are playing with the sizes of the unit as well as quality of the infrastructure to be provided and specifications of construction also.  One has be careful and aware against this prevelant practices. The projects recently launched in Noida, Gurgaon, and Faridabad by JP Green, Mahagun, Gaursons, Assotech, Supertech, Purvanchal and BPTP. In some cases, the entire projects were sold out within a couple of days as quoted and posed by the developer. What is the reality of this? As per research work conducted by the propertykoncepts around 40-60% bookings were done by the authorised agents of the builders and later trying to sell the same in the open market and developers also consented this move. Even some builders projected that they have recived tripple applications against the project and allotment could be done through lottery system.

This is true probably this is the right time to have a proper deal at relaxed terms from most of the developers. There is a huge rush to buy houses by the middle class people, who till six months ago found it almost impossible to do so. Buyer must take note of not only has the average size of housing units been decreased in the first half of 2009, as compared to the size of units launched a year ago, the amenities provided by developers have also been curtailed, for 2-BHK units, size it has come down by 15-18% for 1- and 3-BHK units, the size has decreased by 5% and 15-18%.  

In the budget segment, only basic amenities like car parks, security, power back up, and lifts for highrise apartments are being provided. In many cases, even amenities like swimming pools and a gym, which had become a common features in the condominiums being developed for the last five years, are not being provided. Therefore, while selecting an apartment, a buyer must be clear about the deliverable vis to vis cost being paid. Builders are also working out various ways to reduce the cost and changing their focus in developing independent floors. The report says developers have indicated a preference for constructing independent floors in lowrise housing units and apartments of less than 1,000 sq ft in highrise buildings because of the cost advantage they offer. According to the report, in the last six months, 28% of the units launched were in the form of individual floors in lowrise housing, as compared to only two villa projects, which were launched.

However, the buyer must check it before buying, as half of the independent-floor projects do not provide even power back up.  The builders are also trying to create the condominium of affordable apartments, the density of flats is higher than that in the premium apartments. This will certainly put extra pressure on the common area. The buyers looking for hunting a good deal and trying to materialise the dream house, the price at which they are being offered is certainly a good value for money.