The COVID-19 has expedited the process where real estate buyers prefer projects by branded developers over non-branded ones. The situation has been changing for quite some time, but the pandemic has only added to the chaos. Last year, the number of projects initiated by branded developers increased to 53 per cent, indicating the branded developers’ growing trustworthiness. As per the recent online report, it was found out that more than half the Indian home buyers (as many as 54%) do not mind paying up to 20% premium for properties by established brands.
The report analysis also says that 68% people would prefer an under-construction unit of a reputed brand, rather than a ready-to-move-in project by a lesser-known developer. The branded developers have multiple added advantages such as capital stability and market recognition. The study also says that brand name matters, not only for buyers of luxury housing but also affordable housing. As many as 44% affordable housing buyers are ready to shell out 10% more for brands with a consistent track record. Also with India still reeling from the second wave of COVID, customers are searching for ‘gold standards’ in the housing market from well-known brands; this is also valid for high-end under-construction projects by reputable brands, which are favored over ready-to-move-in homes by smaller developers
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development says, “Homebuyers’ preference for branded developers with an impeccable financial history and a track record would provide them with an opportunity to invest in return-generating properties. The market has much more price appreciation potential than is currently apparent”