Square One recently conducted a real estate survey with 10 questions asked to 50 participants, to understand the consumer behavior of prospective home buyers. This survey also gave Square One an insight into how to effectively target the audience through advertisements using the data collected.
Square One conducted an extensive survey to understand the thinking of property seekers who already own a residential property and are looking to upgrade to a larger more premium space to live in. This in turn helped us achieve an in depth understanding of how to advertise different price categories of real estate to the relevant audience to strike a chord with them.
Conducted in the first quarter of 2020, the online survey saw 50 participants responding to the survey via Survey Monkey, which was forwarded to them through WhatsApp links, so that they could respond easily and immediately. No personal identification questions were asked so that the participants could answer all questions freely, without any reservations.
THE PARTICIPANTS WERE CAREFULLY SELECTED TO FIT THE BELOW MENTIONED CRITERIA:
Senior level/ management level executives in MNCs, small business owners and successful professionals.
Geographically located in Pune.
People with cars with a purchase value of 15 lacs and above.
People with an affinity for luxury lifestyles, bespoke tailoring and fine-dining.
Thereafter, the answers collected were analysed in-house and data was correlated to the present economic conditions. The views expressed in the report are completely unbiased.
DISTRIBUTION OF SURVEY PARTICIPANTS
HOW MUCH ARE YOU WILLING TO SPEND ON A NEW HOME?
The participants were questioned about buying a home to live in and not as an investment. We were able to deduce that 28% of the participants who had an annual household income of `20 lacs would have the spending power to purchase a home between `1.0-1.5 Cr. We understood that even those who climb the corporate ladder rapidly and reach senior positions in MNCs look out for sub `1.0 Cr homes. This also implies that sub `1.0 Cr valued homes have a good chance of getting sold faster. Another inference is that people prefer a `15 lac car to a luxury residence, as people’s lifestyles get more flamboyant with time while residential rentals stay low.
WHAT CONFIGURATION OF HOMES WOULD YOU PREFER BUYING?
We found that 2BHK homes had very few takers among the participants. The statistics indicate that even people who have a budget lower than `1.0 crore for a new house would prefer a 3BHK home. In fact the survey tells us that the demand for 2BHK homes is almost negligible amongst people who are settled in life. There is a high possibility that people who are just starting out prefer 2BHK homes in the lower price segments.
WHAT SIZE OF SOCIETY WOULD YOU LIKE TO BUY A NEW HOME IN?
We can see that the participants show a clear preference for big societies. This could be because often big societies come with a lot of amenities for the entire family as well as ample green spaces. A sizeable 34% would prefer a single building, which could be a need for a more private an intimate environment to live in. Two building projects have a relatively low preference.
WHAT ARE THE 3 THINGS THAT YOU MUST HAVE IN YOUR NEW HOME, IF YOU WERE TO BUY ONE?
Amenities like swimming pool, club house and gym
Well lit and ventilated homes
club house and
|Well lit and
The participants were asked to mention 3 things that were a must for their next home. Eg. a specific amenity/ apartment specification etc. The survey shows, not surprisingly, that participants have a penchant for amenities. As people move up the social ladder, they look to upgrade their lifestyle and want a home with amenities, like a swimming pool and a gym to keep themselves fit. It is safe to say that there has been a noticeable increase in fitness
Ample open spaces and gardens
|Ample parking||Good location|
consciousness in the current working generation. Another important demand is a need for a spacious terrace one that is ideal as a socially usable space, and not merely a standing balcony. We saw that a sizeable 40% of the participants prefer spacious well lit and ventilated homes, putting focus back on good architecture and smart use of spaces in design. Other important considerations while buying a new home seem to be security, location and ample car parking.
WHAT AREA OF PUNE WOULD YOU LIKE TO HAVE A NEW HOME IN?
The survey figures to this question almost matches an earlier question about the participants current residence locations, implying that people of this segment, are already settled in a locality in Pune that they are comfortable with and therefore would like to buy their home within the same locality.
People have cited reasons like child’s existing school and knowledge of the current neighbourhood, to not shift to another part of Pune.
We can thus ascertain that if your target audience is a second home buyer, or if he/she is living in a rented residence conveniently located near his/her child’s school, you should focus on putting up advertisements of your real estate project around their existing location. So if your project is in South Pune, putting up billboards in North Pune may give you very meagre returns.
Below is the analysis to the responses received segment wise. Here we will study the consumer behaviour of people belonging to a particular segment of annual income.
ANNUAL HOUSEHOLD INCOME BELOW Rs. 20 LACS.
It is observed that in such households, one spouse is predominantly the bread winner, while the other spouse is generally a home maker. This segment of families make up 70% of the participants. We are more inclined to believe that the final decision to select a home may predominantly lie with the breadwinner of the house.
It is a foregone conclusion that people in this segment would prefer a sub `1.0 Cr home looking at their financial capacities.
MUST HAVE FOR THEIR NEW HOMES
A sizeable 53% of the participants look forward to having good amenities in their new homes. This shows that in this segment, people are very conscious about the list of amenities a project has to offer as they are looking for value for their money spent. About 20% participants look for a 2BHK home; 65% prefer 3BHK homes. This implies a heavy preference for 3BHK configurations for this segment as well, especially when we are talking to people who already own a home in Pune. As far as size of society is concerned, this segment has a high preference for larger societies.
To advertise to this segment we would need to cater to the male member of the family, who is the bread winner and decision maker. Being a single income family the budget would play a big role, therefore we need to highlight this aspect in the creative, also showing the home to be a value for money proposition with a range of amenities on offer. This in turn would coax the buyer into considering the property weighing it against the value he is receiving with the price he is paying. As budget is a key factor here, the family will not mind shifting to a new neighbourhood, hence the advertising can be spread across the city.
ANNUAL HOUSEHOLD INCOME Rs 20 – 35 LACS.
This is a clear indication that the home buying decision is now a very equal decision. The communications have to be designed for both the husband and the wife.
The trend here is clear. People who fall in this segment aspire for an upgraded lifestyle and 33% would even consider luxury homes. There is a huge demand for homes costing around Rs 1.5 Cr from people in this segment.
60% of people would like to have good amenities in their society. Sufficient parking and good terraces are their second demand.
Surprisingly participants from this segment have almost equal preferences for different sizes of society.
To advertise to this income group we would need to cater to both the husband and wife as it would be a dual decision. This income category aspires for an upscale luxury lifestyle with spacious well designed homes that offer the right amenities. We therefore need to highlight the same in our creatives, which can be advertised both in the project neighbourhood as well as other neighbourhoods in close proximity, as the family may be open to shifting a bit further for the added value that they are receiving
ANNUAL HOUSEHOLD INCOME Rs 35 LACS PLUS.
income groups together as our findings are same for the entire group.)
We see that both the husband and the wife seem to be equal partners in making the decision.
Almost 40% of the participants prefer a home worth `2 Cr and above;clearly showing a
preference for big luxury residences. A good 28% however are likely to settle for a more modest
home costing around `1-1.5 Cr. Obviously they have other means of spending their money, and for
these 28%, a luxury home isn’t their only priority. This segment too shows a huge preference for
amenities. However, there is a growing requirement for spacious, well lit and ventilated homes too.
This segment shows equal preference for 3BHK and 4BHK homes amongst the participants.
Lastly participants from this 50% segment have an inclination towards a bigger size of societies.
To this income category the emotion of luxury, space, quality and an upscale lifestyle will be the key selling points. The creatives must highlight the same and the advertising must be specific to the project area as people in this income group would have grown accustomed to that particular neighbourhod and would be looking to upgrade without having to change their area of residence. As this is a dual income family, the creatives must cater to both the husband and wife.
This survey is the first survey on consumer behaviour towards residential real estate, conducted by Square One. In the coming months we will continue to probe the general public and keep asking them questions on their expectation from a new home. The learnings can be used for all new and upcoming real estate
projects. For us, it helps us communicate better to the buyer with more insightful ad campaigns.