Post demonetization the Delhi real estate market has been sluggish. Buying a home is becoming a distant dream, in reality. Recently, TRA Research Buying Propensity Index (BPI) is a syndicated study shows that consumers in Delhi have the lowest propensity to buy properties, while sentiment in Mumbai is highly positive. The research surveys 3,000 consumer-influencers across eight cities in India conducted every quarter.
by Souma Mukherjee
The BPI measures the transactional, aspirational and environment sentiments towards making buying decisions and is a direct measure of propensity to buy. Currently, the conditions in Delhi are getting worse with the environmental issues, safety, infrastructural amenities, transparency, and unsold inventories piling up.
As reported by ET, “With regard to the city-wise BPI, the highest Buying Propensity was seen in Mumbai with Q4 BPI at 0.58 (Highly Positive) and Pune with Q4 BPI 0.54. The lowest propensity to buy was seen in Delhi with BPI at 0.27 and Ahmedabad with BPI at 0.30, showing an extremely low propensity for purchase,” the research firm said in a statement. The BPI for the quarter ending March 2017 stood at 0.42, a fall of 16 per cent over Q3 which was at 0.50. December, the month after demonetization, had witnessed a sharp fall to the lowest BPI at 0.26 in the months since April 2016. Prior to that, there had been a steady climb in BPI from June at 0.37 to November at 0.68,” it said.
The government has shown significant interest in this sector, yet they seem to miss the right chord. Thus the so-called “buyers market”doesn’t seem to bring confidence for the purchase decision in the Delhi NCR market. The next quarter can be a game changer for this sector with RERA and GST coming in action.
P.S: If you are planning to buy a property, wait!