AFFORDABLE HOUSING Know your customer! Affordable Housing Know your customer!
Content
Part I
Need for housing Pg. no. 4
Policy framework Pg. no. 6
Defining affordable housing Pg. no. 11
Housing scenario in India Pg. no. 12
Demand - Supply gap Pg. no. 14
Part II
Authors: Customer insight Pg. no. 18
Sugata Sarkar Pg. no. 20 Senior Director – Profile of the people surveyed Consultancy & Market Research Knight Frank (India) Pvt. Ltd. [email protected] – Need gaps in current residence Pg. no. 22
Binita Patel Vice President – Purchase drivers and considerations Pg. no. 23 Consultancy Knight Frank (India) Pvt. Ltd. [email protected] – Brand awareness, perception
Kanika Gorwara and satisfaction Pg. no. 26 Consultant Market Research & Advisory Knight Frank (India) Pvt. Ltd. – Overall customer satisfaction [email protected] with brands – All India Pg. no. 30 Affordable Housing Know your customer!
Content
Part I
Need for housing Pg. no. 4
Policy framework Pg. no. 6
Defining affordable housing Pg. no. 11
Housing scenario in India Pg. no. 12
Demand - Supply gap Pg. no. 14
Part II
Authors: Customer insight Pg. no. 18
Sugata Sarkar Pg. no. 20 Senior Director – Profile of the people surveyed Consultancy & Market Research Knight Frank (India) Pvt. Ltd. [email protected] – Need gaps in current residence Pg. no. 22
Binita Patel Vice President – Purchase drivers and considerations Pg. no. 23 Consultancy Knight Frank (India) Pvt. Ltd. [email protected] – Brand awareness, perception
Kanika Gorwara and satisfaction Pg. no. 26 Consultant Market Research & Advisory Knight Frank (India) Pvt. Ltd. – Overall customer satisfaction [email protected] with brands – All India Pg. no. 30 Affordable Housing Know your customer!
Part I
2 Shortage of a ordable living in slums and squatter which was later revised to 10 million settlements. Further, a rapid increase in 2017. It is estimated that 95 per housing Need in land prices and real estate cent of this shortage is in the affordable housing segment. The fact The case for sustainable urbanisation developments in urban areas have that majority of these migrants hail becomes stronger and acquires induced the deprived and the from lower income groups, justifies for housing greater attention in the context of the economically weaker sections of the the need for creating more affordable rural to urban migration, changing society to occupy the marginal lands typified by dilapidated housing stock, housing units in urban India. With a total population of around 1.21 billion (2011)1, demographics, socio-economic congestion and obsolescence. India is the second-most populous country in the composition, increase in households, Besides those living in obsolescent formation of nuclear families, and a world. As per Census 2011, more than 31 per cent of It is apparent that substantial housing houses, 80 per cent of these burgeoning middle class. the total population, i.e. about 377 million, is urban shortage looms large in urban India households are living in congested population, living in 7,933 urban centres including dwellings and are in need of new With most megacities and medium- and a wide gap exists between the 53 cities with populations above one million and houses. The report also highlights sized cities witnessing high demand and supply of affordable three megacities (Greater Mumbai, Delhi and that nearly 1 million households are concentration of urban population, housing, both in terms of quantity and Kolkata). living in non-serviceable katcha (mud there has been an increasing quality. and brick) houses, while over half a The seventy years of independence have seen many pressure on housing as well as basic The Ministry of Housing and Urban million households are living in socio-economic transformations linked to the urban infrastructure and services. Poverty Alleviation's TG-12 report homeless conditions. urbanisation trend post-colonial rule. As per the Increasing concentration of people in mentioned that the country was report, Urban India 2011, by Indian Institute for 2 urban areas has resulted in an facing an urban housing shortage of Report of the Technical Urban Group (TG-12) Human Settlements, there were only five Indian on Urban Housing Shortage 2012-17, Ministry increase in the number of people about 18.78 million in 2012, a number of Housing and Urban Poverty Alleviation, cities with a population greater than 1 million, and September 2012 only 41 cities greater than 0.1 million population in 1951. However, in 2011 there were three cities with a FIGURE 1 FIGURE 2 population greater than 10 million and 53 cities with
populations greater than 1 million. URBANISATION GROWTH IN INDIA URBANISATION TREND (1951-2017)
35.0% In 1961, the urban population of India was 78.9 2017 440 1338
million, that is, 18.20 per cent of the total population. 30.0% 2011 377 1211 By 2011, the share of urban population had reached 25.0% 2001 286 1029 377 million accounting for 31.2 per cent of the total 20.0% 1991 217 846 population. 15.0% 1981 159 683 1971 109 548 With almost 70 per cent of the incremental 10.0% employment being created in urban centres, the rate 1961 79 439 5.0% of urbanisation is likely to continue, which will lead to 1951 62 361 0.0% almost 40 per cent of the country's population living 0 500 1000 1500 2000 1951-61 1961-71 1971-81 1981-91 1991-01 2001-11 in urban centres by 2030. Urban Population Total Population
Source: Asian Development Bank, Census 2011, Source: Asian Development Bank, Census 2011, Knight Frank Research 1 Census of India 2011 Knight Frank Research
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Part I
2 Shortage of a ordable living in slums and squatter which was later revised to 10 million settlements. Further, a rapid increase in 2017. It is estimated that 95 per housing Need in land prices and real estate cent of this shortage is in the affordable housing segment. The fact The case for sustainable urbanisation developments in urban areas have that majority of these migrants hail becomes stronger and acquires induced the deprived and the from lower income groups, justifies for housing greater attention in the context of the economically weaker sections of the the need for creating more affordable rural to urban migration, changing society to occupy the marginal lands typified by dilapidated housing stock, housing units in urban India. With a total population of around 1.21 billion (2011)1, demographics, socio-economic congestion and obsolescence. India is the second-most populous country in the composition, increase in households, Besides those living in obsolescent formation of nuclear families, and a world. As per Census 2011, more than 31 per cent of It is apparent that substantial housing houses, 80 per cent of these burgeoning middle class. the total population, i.e. about 377 million, is urban shortage looms large in urban India households are living in congested population, living in 7,933 urban centres including dwellings and are in need of new With most megacities and medium- and a wide gap exists between the 53 cities with populations above one million and houses. The report also highlights sized cities witnessing high demand and supply of affordable three megacities (Greater Mumbai, Delhi and that nearly 1 million households are concentration of urban population, housing, both in terms of quantity and Kolkata). living in non-serviceable katcha (mud there has been an increasing quality. and brick) houses, while over half a The seventy years of independence have seen many pressure on housing as well as basic The Ministry of Housing and Urban million households are living in socio-economic transformations linked to the urban infrastructure and services. Poverty Alleviation's TG-12 report homeless conditions. urbanisation trend post-colonial rule. As per the Increasing concentration of people in mentioned that the country was report, Urban India 2011, by Indian Institute for 2 urban areas has resulted in an facing an urban housing shortage of Report of the Technical Urban Group (TG-12) Human Settlements, there were only five Indian on Urban Housing Shortage 2012-17, Ministry increase in the number of people about 18.78 million in 2012, a number of Housing and Urban Poverty Alleviation, cities with a population greater than 1 million, and September 2012 only 41 cities greater than 0.1 million population in 1951. However, in 2011 there were three cities with a FIGURE 1 FIGURE 2 population greater than 10 million and 53 cities with populations greater than 1 million. URBANISATION GROWTH IN INDIA URBANISATION TREND (1951-2017)
35.0% In 1961, the urban population of India was 78.9 2017 440 1338 million, that is, 18.20 per cent of the total population. 30.0% 2011 377 1211 By 2011, the share of urban population had reached 25.0% 2001 286 1029 377 million accounting for 31.2 per cent of the total 20.0% 1991 217 846 population. 15.0% 1981 159 683 1971 109 548 With almost 70 per cent of the incremental 10.0% employment being created in urban centres, the rate 1961 79 439 5.0% of urbanisation is likely to continue, which will lead to 1951 62 361 0.0% almost 40 per cent of the country's population living 0 500 1000 1500 2000 1951-61 1961-71 1971-81 1981-91 1991-01 2001-11 in urban centres by 2030. Urban Population Total Population
Source: Asian Development Bank, Census 2011, Source: Asian Development Bank, Census 2011, Knight Frank Research 1 Census of India 2011 Knight Frank Research
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Policy framework
The Indian government has National Housing Policy 1994. Implementation methodology formulated many policies for However, the first policy specific housing especially since the late to urban housing was the The Mission will be implemented (ULBs) and state governments. 1980s including the National National Urban Housing and through four verticals giving options These four verticals are as follows: Housing Policy of 1988. Habitat Policy 2007 (Ministry of to beneficiaries, Urban Local Bodies Additionally, many bodies like the Housing and Urban Poverty National Housing Bank (NHB) Alleviation). It focused on TABLE 1 and Housing & Urban affordable housing as a key Development Corporation objective for sustainable urban 1 2 3 4 (HUDCO) were also created to development. Subsequently, ‘In-situ’ slum Affordable Affordable Subsidy for facilitate the implementation of many programmes specific to redevelopment housing through housing in beneficiary-led such policies. affordable housing have since credit-linked partnership individual house been incorporated like subsidy construction or Consequently, numerous efforts Jawaharlal Nehru National Urban enhancement have been made to provide Renewal Mission, Rajiv Awas • Using land as a • Demand-side • With private • For individuals adequate policy support for low Yojana, etc. resource intervention sector or of EWS category cost housing starting with the public sector requiring an • With private • Interest including individual house participation subvention parastatal subsidy for • Central • Extra agencies EWS, LIG and assistance at ‘Housing for All by 2022’ initiative FSI/TDR/FAR, MIG for new • Central INR 0.15 million if required, to house or assistance per per house make projects incremental EWS house in financially • State to prepare The Pradhan Mantri Awas Yojana family a pucca house with water housing affordable viable a separate (PMAY) launched in 2015 connection, toilet facilities, 24x7 housing project for such projects where provides a fresh impetus – the electricity supply, etc. The beneficiaries 35 per cent of PMAY-Urban (PMAY-U) Mission would be implemented constructed • No isolated/ subsumes all the previous urban between the year 2015 and 2022, houses are for splintered housing schemes and aims at and is expected to provide EWS category beneficiary to housing for all to be achieved by central assistance to be covered the year 2022. The total housing implementing agencies through shortage envisaged to be States and Union Territories for The scheme will be implemented as a prescribes certain mandatory addressed through the PMAY-U providing houses to all eligible Centrally Sponsored Scheme3, reforms for easing up the urban land is 20 million. families/beneficiaries by 2022. except the credit-linked subsidy market for housing, to make All statutory towns as per Census component, which will be adequate urban land available for Pradhan Mantri Awas Yojana – 2011 and towns notified implemented as a Central Sector affordable housing. Housing for All (Urban) was subsequently are eligible for Scheme4. The Mission also launched by the Central coverage under the Mission.
Government to achieve the 3 Centrally Sponsored Schemes are the schemes by the centre where there is financial articipation by objective of providing every both the centre and states. 4 Central sector schemes are schemes with 100 per cent funding by the Central government and implemented by the Central Government machinery.
6 7 Affordable Housing Know your customer!
Policy framework
The Indian government has National Housing Policy 1994. Implementation methodology formulated many policies for However, the first policy specific housing especially since the late to urban housing was the The Mission will be implemented (ULBs) and state governments. 1980s including the National National Urban Housing and through four verticals giving options These four verticals are as follows: Housing Policy of 1988. Habitat Policy 2007 (Ministry of to beneficiaries, Urban Local Bodies Additionally, many bodies like the Housing and Urban Poverty National Housing Bank (NHB) Alleviation). It focused on TABLE 1 and Housing & Urban affordable housing as a key Development Corporation objective for sustainable urban 1 2 3 4 (HUDCO) were also created to development. Subsequently, ‘In-situ’ slum Affordable Affordable Subsidy for facilitate the implementation of many programmes specific to redevelopment housing through housing in beneficiary-led such policies. affordable housing have since credit-linked partnership individual house been incorporated like subsidy construction or Consequently, numerous efforts Jawaharlal Nehru National Urban enhancement have been made to provide Renewal Mission, Rajiv Awas • Using land as a • Demand-side • With private • For individuals adequate policy support for low Yojana, etc. resource intervention sector or of EWS category cost housing starting with the public sector requiring an • With private • Interest including individual house participation subvention parastatal subsidy for • Central • Extra agencies EWS, LIG and assistance at ‘Housing for All by 2022’ initiative FSI/TDR/FAR, MIG for new • Central INR 0.15 million if required, to house or assistance per per house make projects incremental EWS house in financially • State to prepare The Pradhan Mantri Awas Yojana family a pucca house with water housing affordable viable a separate (PMAY) launched in 2015 connection, toilet facilities, 24x7 housing project for such projects where provides a fresh impetus – the electricity supply, etc. The beneficiaries 35 per cent of PMAY-Urban (PMAY-U) Mission would be implemented constructed • No isolated/ subsumes all the previous urban between the year 2015 and 2022, houses are for splintered housing schemes and aims at and is expected to provide EWS category beneficiary to housing for all to be achieved by central assistance to be covered the year 2022. The total housing implementing agencies through shortage envisaged to be States and Union Territories for The scheme will be implemented as a prescribes certain mandatory addressed through the PMAY-U providing houses to all eligible Centrally Sponsored Scheme3, reforms for easing up the urban land is 20 million. families/beneficiaries by 2022. except the credit-linked subsidy market for housing, to make All statutory towns as per Census component, which will be adequate urban land available for Pradhan Mantri Awas Yojana – 2011 and towns notified implemented as a Central Sector affordable housing. Housing for All (Urban) was subsequently are eligible for Scheme4. The Mission also launched by the Central coverage under the Mission.
Government to achieve the 3 Centrally Sponsored Schemes are the schemes by the centre where there is financial articipation by objective of providing every both the centre and states. 4 Central sector schemes are schemes with 100 per cent funding by the Central government and implemented by the Central Government machinery.
6 7 Affordable Housing Know your customer!
Credit Linked Subsidy Other initiatives to promote Timely completion Scheme (CLSS) under the a ordable housing of projects Pradhan Mantri Awas Yojyna
(PMAY) The first major push by the Other nancial bene ts A first in affordable housing projects, government to the affordable housing two parameters play a very important CLSS provides for easy institutional households with interest subsidy monthly instalments (EMI). This • To make these projects attractive sector came in the Union Budget role in the success of a project—the credit to Economically Weaker credited upfront to the borrower's scheme should give a boost to 100 per cent deduction for profits proposal of 2016-17, where it laid pricing of the project and second, its Section (EWS), Lower Income Group account. This effectively reduces the housing projects in the peripheral was allowed down the guidelines for housing timely completion. At present, even in (LIG) and Middle Income Group (MIG) housing loan amount and equated areas of metros. projects to qualify as an affordable • Minimum Alternate Tax (MAT) will affordable housing projects there housing project. be applicable on such projects have been instances of projects not • Providing two years time to being completed on time. To ensure TABLE 2 Qualifying criteria developers to pay tax on notional that this anomaly (of delay in timely rental income on completed but CLSS – An illustration • Flats/apartments with the carpet completion) in the real estate is unsold units area of 30 and 60 square metres removed, the government Criteria EWS + LIG MIG-I MIG-II • Reducing the tenure for long-term implemented the Real Estate – Also, the 30 square metres will capital gains for affordable (Regulation and Development) Act Household/Annual income (INR) Up to INR 0.6 million INR 0.601 - 1.2 million INR 1.201 - 1.8 million apply only in case of municipal housing from three to two years (RERA), 2016 in full letter and spirit limits of the four metro cities, Property area (carpet area) 30/60 sq m 160 sq m 200 sq m while for the rest of the • Reserve Bank of India (RBI) also from 1 May 2017. Among other things, country, including the initiated series of measures to as per the provisions of this Act, Max loan amount for subsidy Up to 0.6 million Up to 0.9 million Up to 1.2 million peripheral areas of metros, promote affordable housing in the players from the supply side will have Subsidy % 6.50% 4% 3% 60 square metres will apply. country to complete their projects within the time they specify to the relevant • RBI defined affordable housing Subsidy amount INR 0.267 million INR 0.235 million INR 0.23 million Authority when applying for Timely approval and loans as eligible under priority registration of their housing project. Max term of loan (on which subsidy 20 yrs 20 yrs 20 yrs completion sector lending Since housing projects where more will be calculated) – A key • Banks allowed to issue long term than eight apartments are developed bonds (of minimum seven years • The project approvals need to be for the purposes of selling will be maturity) to finance loans to received between June 2016 and covered under RERA, affordable affordable housing. Such bonds March 2019 housing projects will automatically exempt from the computation of Technology Sub-Mission – For ii) Innovative technologies and States to play major roles come under the purview of the new • The project needs to be adjusted net bank credit (ANBC). materials completed within a period of five legislation, as they are typically large- faster and better quality ‘Housing for All by 2022’ provides • RBI allowed the banks to provide iii) Green buildings using natural years from the date of getting the scale projects. This will further ensure construction flexibility to states to choose the best home loans up to 90 per cent for resources approval that the players operating in the option amongst the four verticals of properties that cost up to INR 0.3 affordable housing space complete A Technology Sub-Mission under iv) Earthquake and other disaster- the Mission to meet the demand of million their projects within the stipulated ‘Housing for All by 2022’ was set up resistant technologies and housing in their states. The process Granting infrastructure status • RBI modified the provisioning or to facilitate adoption of modern, designs of project formulation and approval in time. To ensure that developers can • Union Budget 2017–18 granted the risk-weighted norms for home innovative and green technologies accordance with Scheme Guidelines do this in an efficient manner, the affordable housing segment an loans to make them cheaper. The and building material for faster and are left to the states, so that projects government needs to further make infrastructure status and thus met standard asset provisioning on quality construction of houses under can be formulated, approved and sure that there are processes in a long-standing demand of the housing loans lowered to 0.25 per various geo-climatic zones. The implemented faster. It also provides place that will provide approvals in an real estate sector. This initiative cent from 0.4 per cent in June Technology Sub-Mission will work on technical and financial support in efficient manner. gives banks more elbow room to 2017. the following aspects: accordance to the Guidelines to the provide loans for houses in this states to meet the challenge of urban i) Design and planning segment at a much more housing. competitive rate.
8 9 Affordable Housing Know your customer!
Credit Linked Subsidy Other initiatives to promote Timely completion Scheme (CLSS) under the a ordable housing of projects Pradhan Mantri Awas Yojyna
(PMAY) The first major push by the Other nancial bene ts A first in affordable housing projects, government to the affordable housing two parameters play a very important CLSS provides for easy institutional households with interest subsidy monthly instalments (EMI). This • To make these projects attractive sector came in the Union Budget role in the success of a project—the credit to Economically Weaker credited upfront to the borrower's scheme should give a boost to 100 per cent deduction for profits proposal of 2016-17, where it laid pricing of the project and second, its Section (EWS), Lower Income Group account. This effectively reduces the housing projects in the peripheral was allowed down the guidelines for housing timely completion. At present, even in (LIG) and Middle Income Group (MIG) housing loan amount and equated areas of metros. projects to qualify as an affordable • Minimum Alternate Tax (MAT) will affordable housing projects there housing project. be applicable on such projects have been instances of projects not • Providing two years time to being completed on time. To ensure TABLE 2 Qualifying criteria developers to pay tax on notional that this anomaly (of delay in timely rental income on completed but CLSS – An illustration • Flats/apartments with the carpet completion) in the real estate is unsold units area of 30 and 60 square metres removed, the government Criteria EWS + LIG MIG-I MIG-II • Reducing the tenure for long-term implemented the Real Estate – Also, the 30 square metres will capital gains for affordable (Regulation and Development) Act Household/Annual income (INR) Up to INR 0.6 million INR 0.601 - 1.2 million INR 1.201 - 1.8 million apply only in case of municipal housing from three to two years (RERA), 2016 in full letter and spirit limits of the four metro cities, Property area (carpet area) 30/60 sq m 160 sq m 200 sq m while for the rest of the • Reserve Bank of India (RBI) also from 1 May 2017. Among other things, country, including the initiated series of measures to as per the provisions of this Act, Max loan amount for subsidy Up to 0.6 million Up to 0.9 million Up to 1.2 million peripheral areas of metros, promote affordable housing in the players from the supply side will have Subsidy % 6.50% 4% 3% 60 square metres will apply. country to complete their projects within the time they specify to the relevant • RBI defined affordable housing Subsidy amount INR 0.267 million INR 0.235 million INR 0.23 million Authority when applying for Timely approval and loans as eligible under priority registration of their housing project. Max term of loan (on which subsidy 20 yrs 20 yrs 20 yrs completion sector lending Since housing projects where more will be calculated) – A key • Banks allowed to issue long term than eight apartments are developed bonds (of minimum seven years • The project approvals need to be for the purposes of selling will be maturity) to finance loans to received between June 2016 and covered under RERA, affordable affordable housing. Such bonds March 2019 housing projects will automatically exempt from the computation of Technology Sub-Mission – For ii) Innovative technologies and States to play major roles come under the purview of the new • The project needs to be adjusted net bank credit (ANBC). materials completed within a period of five legislation, as they are typically large- faster and better quality ‘Housing for All by 2022’ provides • RBI allowed the banks to provide iii) Green buildings using natural years from the date of getting the scale projects. This will further ensure construction flexibility to states to choose the best home loans up to 90 per cent for resources approval that the players operating in the option amongst the four verticals of properties that cost up to INR 0.3 affordable housing space complete A Technology Sub-Mission under iv) Earthquake and other disaster- the Mission to meet the demand of million their projects within the stipulated ‘Housing for All by 2022’ was set up resistant technologies and housing in their states. The process Granting infrastructure status • RBI modified the provisioning or to facilitate adoption of modern, designs of project formulation and approval in time. To ensure that developers can • Union Budget 2017–18 granted the risk-weighted norms for home innovative and green technologies accordance with Scheme Guidelines do this in an efficient manner, the affordable housing segment an loans to make them cheaper. The and building material for faster and are left to the states, so that projects government needs to further make infrastructure status and thus met standard asset provisioning on quality construction of houses under can be formulated, approved and sure that there are processes in a long-standing demand of the housing loans lowered to 0.25 per various geo-climatic zones. The implemented faster. It also provides place that will provide approvals in an real estate sector. This initiative cent from 0.4 per cent in June Technology Sub-Mission will work on technical and financial support in efficient manner. gives banks more elbow room to 2017. the following aspects: accordance to the Guidelines to the provide loans for houses in this states to meet the challenge of urban i) Design and planning segment at a much more housing. competitive rate.
8 9 Affordable Housing Know your customer!
De ning a ordable housing
The term 'affordability' is considered As per the ‘Affordable Housing in • In terms of income level for LIG, as a relative term which has different Partnership’ scheme launched in annual household income should meanings depending on the 2009 by the Ministry of Housing and range from ‘Rupees three lakhs to stakeholders. However, 'Affordable Urban Poverty Alleviation, criterion for Rupees six lakhs’ (INR 0.3 - 0.6 Housing' has been categorised EWS and LIG was categorised in million) based on certain criteria set by the terms of unit area and repayment • In terms of unit area for LIG, government to accommodate capability as defined in the following carpet area of the dwelling unit housing for every household in India. points: should not exceed 60 sq m According to the RICS report, 'Making • In terms of built-up area, EWS and Affordable Housing Work in India', LIG category units should not affordability in the context of urban exceed 300 sq ft and 500 sq ft, housing would mean provision of respectively ‘adequate shelter’ on a sustained • In terms of carpet area, EWS and basis ensuring security of tenure LIG category units should not within the means of the common exceed 25 sq m and 48 sq m, urban household. respectively As per ‘Taskforce on promoting • Monthly repayment obligation / Affordable Housing’ with respect to EMI for housing loan should not LIG and EWS, area of the dwelling exceed 30 per cent to 40 per unit, income level and EMI repayment cent of monthly income of the capability were considered as a buyer benchmark for defining the affordability as mentioned below: As per ‘Pradhan Mantri Awas Yojana’, housing for all by 2022 scheme • Carpet area of the dwelling unit launched in 2015 by the Ministry of should not exceed 300 sq ft for Housing and Urban Poverty EWS and 600 sq ft for LIG Alleviation, criteria for EWS and LIG • For both EWS and LIG, cost of the was categorised in terms of income dwelling unit should not exceed level and unit area as defined below: four times of the household's • In terms of income level for EWS, gross annual income annual household income should • For both EWS and LIG, monthly not exceed 'Rupees three lakhs' repayment obligation/EMI should (0.3 million) per annum not exceed 30 per cent of the • In terms of unit area for EWS, household's gross monthly carpet area of the dwelling unit income should not exceed 30 sq m
10 11 Affordable Housing Know your customer!
De ning a ordable housing
The term 'affordability' is considered As per the ‘Affordable Housing in • In terms of income level for LIG, as a relative term which has different Partnership’ scheme launched in annual household income should meanings depending on the 2009 by the Ministry of Housing and range from ‘Rupees three lakhs to stakeholders. However, 'Affordable Urban Poverty Alleviation, criterion for Rupees six lakhs’ (INR 0.3 - 0.6 Housing' has been categorised EWS and LIG was categorised in million) based on certain criteria set by the terms of unit area and repayment • In terms of unit area for LIG, government to accommodate capability as defined in the following carpet area of the dwelling unit housing for every household in India. points: should not exceed 60 sq m According to the RICS report, 'Making • In terms of built-up area, EWS and Affordable Housing Work in India', LIG category units should not affordability in the context of urban exceed 300 sq ft and 500 sq ft, housing would mean provision of respectively ‘adequate shelter’ on a sustained • In terms of carpet area, EWS and basis ensuring security of tenure LIG category units should not within the means of the common exceed 25 sq m and 48 sq m, urban household. respectively As per ‘Taskforce on promoting • Monthly repayment obligation / Affordable Housing’ with respect to EMI for housing loan should not LIG and EWS, area of the dwelling exceed 30 per cent to 40 per unit, income level and EMI repayment cent of monthly income of the capability were considered as a buyer benchmark for defining the affordability as mentioned below: As per ‘Pradhan Mantri Awas Yojana’, housing for all by 2022 scheme • Carpet area of the dwelling unit launched in 2015 by the Ministry of should not exceed 300 sq ft for Housing and Urban Poverty EWS and 600 sq ft for LIG Alleviation, criteria for EWS and LIG • For both EWS and LIG, cost of the was categorised in terms of income dwelling unit should not exceed level and unit area as defined below: four times of the household's • In terms of income level for EWS, gross annual income annual household income should • For both EWS and LIG, monthly not exceed 'Rupees three lakhs' repayment obligation/EMI should (0.3 million) per annum not exceed 30 per cent of the • In terms of unit area for EWS, household's gross monthly carpet area of the dwelling unit income should not exceed 30 sq m
10 11 Affordable Housing Know your customer!
Housing scenario in India
India's urban housing shortage is housing segment. Over the last few being primarily driven by the years, the government has Economically Weaker Section (EWS) announced a series of measures to and Lower Income Group (LIG) bring a fresh lease of life into this categories. However, majority of real segment of the market. estate private players have As a supply-side intervention, the traditionally focused on premium government launched the 'Affordable housing owing to its higher returns. Housing in Partnership' under the This has led to a build-up of huge Pradhan Mantri Awas Yojana (Urban) unsold inventory that has brought the Programme. Under this mission, the residential real estate market to a government provides financial near standstill. assistance at the rate of INR 1.5 lakh The impetus to the residential market per EWS house being built under has come due to the government's these different partnerships.5 focused attention on the affordable Post the launch of the policy , right- sizing and right-pricing of new residential product and improving FIGURE 3 FIGURE 4 home-buyer sentiment have led to a LAUNCHES (TOP EIGHT CITIES) steady increase in supply. As per TICKET SIZE SPLIT OF LAUNCHED UNITS (2016 TO H1 2019) Knight Frank Research, the 120,000 100% residential market of the top eight 100,000 90% cities in India – Mumbai, NCR, 80,000 80% Bangalore, Pune, Chennai, 70% 60,000 Hyderabad, Kolkata and Ahmedabad 60% 40,000 witnessed an infusion of 0.57 million 50% 20,000 units in the since 2016. Also given the 40% - push in the affordable housing sector, 30% H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 the private sector players have Launches (Units) participated in the development of 20% 10% Source: Knight Frank Research the affordable housing programme, 0% which is visible from the latest set of H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 numbers that indicate a consistent 5 An affordable housing project can be a mix of houses for different categories (EWS, LIG, and HIG, etc.) <2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn >20 mn but it will be eligible for central assistance, if at least 35 per cent of the houses in the project are for high share of less than INR 2.5 mn EWS category and a single project has at least 250 houses. ticket size since 2016.
12 13 Affordable Housing Know your customer!
Housing scenario in India
India's urban housing shortage is housing segment. Over the last few being primarily driven by the years, the government has Economically Weaker Section (EWS) announced a series of measures to and Lower Income Group (LIG) bring a fresh lease of life into this categories. However, majority of real segment of the market. estate private players have As a supply-side intervention, the traditionally focused on premium government launched the 'Affordable housing owing to its higher returns. Housing in Partnership' under the This has led to a build-up of huge Pradhan Mantri Awas Yojana (Urban) unsold inventory that has brought the Programme. Under this mission, the residential real estate market to a government provides financial near standstill. assistance at the rate of INR 1.5 lakh The impetus to the residential market per EWS house being built under has come due to the government's these different partnerships.5 focused attention on the affordable Post the launch of the policy , right- sizing and right-pricing of new residential product and improving FIGURE 3 FIGURE 4 home-buyer sentiment have led to a LAUNCHES (TOP EIGHT CITIES) steady increase in supply. As per TICKET SIZE SPLIT OF LAUNCHED UNITS (2016 TO H1 2019) Knight Frank Research, the 120,000 100% residential market of the top eight 100,000 90% cities in India – Mumbai, NCR, 80,000 80% Bangalore, Pune, Chennai, 70% 60,000 Hyderabad, Kolkata and Ahmedabad 60% 40,000 witnessed an infusion of 0.57 million 50% 20,000 units in the since 2016. Also given the 40% - push in the affordable housing sector, 30% H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 the private sector players have Launches (Units) participated in the development of 20% 10% Source: Knight Frank Research the affordable housing programme, 0% which is visible from the latest set of H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 numbers that indicate a consistent 5 An affordable housing project can be a mix of houses for different categories (EWS, LIG, and HIG, etc.) <2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn >20 mn but it will be eligible for central assistance, if at least 35 per cent of the houses in the project are for high share of less than INR 2.5 mn EWS category and a single project has at least 250 houses. ticket size since 2016.
12 13 Affordable Housing Know your customer!
• Cost of land – Provision of Knight Frank's criteria for FIGURE 5 incentives to the private de ning a ordable housing developer for developing TOP EIGHT CITIES HOUSING TOP EIGHT CITIES HOUSING affordable housing projects and Affordable housing and low-cost DEMAND CONCENTRATION SUPPLY CONCENTRATION PPP in housing projects as housing are the most talked about ~600,000 units ~200,000 units implemented earlier by the issues in the real estate sector these government days. However, there is a distinct • Cost of construction – difference between the two concepts. Implementing construction In the absence of an institutional technology to reduce rental housing market in India, construction cost and using affordable and low-cost housing sustainable building material to denotes ownership and not rental 56% increase the building housing. performance and to reduce the Demand 22% operational cost Low-cost housing generally refers to cost-effective housing that relies on • Financial support – In spite of has received a very good response. In 24% 34% ‘low-cost technology’ that ensures PMAY's CLSS, support from - supply the MMR, affordable housing projects similar quality and durability as financial institutes would be have already started taking shape. compared to more commonly used required for encouraging the first- XRBIA Chembur Central by XRBIA 5% technologies. In India, low-cost time homebuyers in EWS/LIG gap 20% and Crystal Group in Mumbai is one housing is primarily aimed at EWS sectors to avail housing loans by such example. Ruparel Realty's slashing the up-front payment 15% and LIG segment and the intervention affordable housing project in either through instalments or & involvement of the government 24% Kandivali West is another example. through subvention schemes However, the supply intervention is a authorities is likely to be prominent. • For the purpose of supply far cry from the actual demand of the Multi-award winning Provident The affordability of a household in analysis, the different categories sector. India's urban housing Sunworth, one of India's largest each location is an interactive of affordable housing is defined shortage is being primarily driven by <2.5 mn 2.5-5 mn 5-7.5 mn >7.5 mn stand-alone affordable home outcome of the house price, as per the ticket size of a units: the EWS and LIG categories. An projects involving a scale of 6,000 analysis of the demand supply shows, homes is a prime example of creating household income, spending and – Budget Housing: Ticket size affordable housing policy, the first and metro cities and in urban that on an average, nearly 0.6 million a socio-economic fabric of saving behaviour and other less than INR 2.5 million foremost step that the industry has agglomerations. However, an demographic factors like size of the homes are required every year in the infrastructure for consumers in the – Affordable Housing: Ticket taken is to make houses more affordable housing project is a household. It is recognised that top eight cities versus a supply of 0.2 mid-income segment. The size between INR 2.5 to INR affordable. Developers have re- volume game and the major affordability is relative to million units per year. affordability tag is not diminished by 5.0 million looked at the pricing, size and challenge for the Government of India geographical area, time and income Notwithstanding the demand, there is configuration of residential units in will be to facilitate in providing any quality of life enhancing – Premium Affordable: Ticket category. Thus, defining affordable a huge supply gap for urban housing their planned developments. The suitable land parcels, that too at a amenities including swimming pools, size between INR 5.0 to INR housing continues to be a challenge and more so in the EWS and LIG government must further support this competitive price for the project to be clubhouses, badminton and tennis 7.5 million for major players of the real estate Category category, i.e. houses with move with proactive initiatives to financially viable. It also goes without courts. Provident Park Square, off – Premium: Ticket sizes greater sector in India. ticket size less than INR 2.5 million. develop peripheral locations with saying, the importance of having Kankapura Road, Bengaluru is than INR 7.5 million Whereas the demand in the EWS and required connectivity and systems in place that will help in another example that packs all However, affordability can be defined LIG Category is around 3.4 Lakh infrastructure. getting approvals in an efficient and premium amenities desired for a as provision of sustainable shelter homes, the supply is the category is timely manner. luxurious lifestyle at a comfortable with basic amenities at an affordable only 44,000 thousand homes only. . As result of the push towards price. Provident is committed to price whilst affordability can be affordable housing, a structural shift Through a field survey in the Mumbai continue with the vision of providing achieved by tweaking the factors Currently, the biggest factor affecting will be witnessed from the supply Metropolitan Region (MMR), Delhi affordable luxury homes, keeping in affecting the same: sales is the unaffordability of the side. One can expect affordable NCR and Bengaluru, it was observed line with Budget 2017's impetus to homebuyers. After the launch of the housing projects to come up within that the affordable housing scheme Affordable Housing.
14 15 Affordable Housing Know your customer!
• Cost of land – Provision of Knight Frank's criteria for FIGURE 5 incentives to the private de ning a ordable housing developer for developing TOP EIGHT CITIES HOUSING TOP EIGHT CITIES HOUSING affordable housing projects and Affordable housing and low-cost DEMAND CONCENTRATION SUPPLY CONCENTRATION PPP in housing projects as housing are the most talked about ~600,000 units ~200,000 units implemented earlier by the issues in the real estate sector these government days. However, there is a distinct • Cost of construction – difference between the two concepts. Implementing construction In the absence of an institutional technology to reduce rental housing market in India, construction cost and using affordable and low-cost housing sustainable building material to denotes ownership and not rental 56% increase the building housing. performance and to reduce the Demand 22% operational cost Low-cost housing generally refers to cost-effective housing that relies on • Financial support – In spite of has received a very good response. In 24% 34% ‘low-cost technology’ that ensures PMAY's CLSS, support from - supply the MMR, affordable housing projects similar quality and durability as financial institutes would be have already started taking shape. compared to more commonly used required for encouraging the first- XRBIA Chembur Central by XRBIA 5% technologies. In India, low-cost time homebuyers in EWS/LIG gap 20% and Crystal Group in Mumbai is one housing is primarily aimed at EWS sectors to avail housing loans by such example. Ruparel Realty's slashing the up-front payment 15% and LIG segment and the intervention affordable housing project in either through instalments or & involvement of the government 24% Kandivali West is another example. through subvention schemes However, the supply intervention is a authorities is likely to be prominent. • For the purpose of supply far cry from the actual demand of the Multi-award winning Provident The affordability of a household in analysis, the different categories sector. India's urban housing Sunworth, one of India's largest each location is an interactive of affordable housing is defined shortage is being primarily driven by <2.5 mn 2.5-5 mn 5-7.5 mn >7.5 mn stand-alone affordable home outcome of the house price, as per the ticket size of a units: the EWS and LIG categories. An projects involving a scale of 6,000 analysis of the demand supply shows, homes is a prime example of creating household income, spending and – Budget Housing: Ticket size affordable housing policy, the first and metro cities and in urban that on an average, nearly 0.6 million a socio-economic fabric of saving behaviour and other less than INR 2.5 million foremost step that the industry has agglomerations. However, an demographic factors like size of the homes are required every year in the infrastructure for consumers in the – Affordable Housing: Ticket taken is to make houses more affordable housing project is a household. It is recognised that top eight cities versus a supply of 0.2 mid-income segment. The size between INR 2.5 to INR affordable. Developers have re- volume game and the major affordability is relative to million units per year. affordability tag is not diminished by 5.0 million looked at the pricing, size and challenge for the Government of India geographical area, time and income Notwithstanding the demand, there is configuration of residential units in will be to facilitate in providing any quality of life enhancing – Premium Affordable: Ticket category. Thus, defining affordable a huge supply gap for urban housing their planned developments. The suitable land parcels, that too at a amenities including swimming pools, size between INR 5.0 to INR housing continues to be a challenge and more so in the EWS and LIG government must further support this competitive price for the project to be clubhouses, badminton and tennis 7.5 million for major players of the real estate Category category, i.e. houses with move with proactive initiatives to financially viable. It also goes without courts. Provident Park Square, off – Premium: Ticket sizes greater sector in India. ticket size less than INR 2.5 million. develop peripheral locations with saying, the importance of having Kankapura Road, Bengaluru is than INR 7.5 million Whereas the demand in the EWS and required connectivity and systems in place that will help in another example that packs all However, affordability can be defined LIG Category is around 3.4 Lakh infrastructure. getting approvals in an efficient and premium amenities desired for a as provision of sustainable shelter homes, the supply is the category is timely manner. luxurious lifestyle at a comfortable with basic amenities at an affordable only 44,000 thousand homes only. . As result of the push towards price. Provident is committed to price whilst affordability can be affordable housing, a structural shift Through a field survey in the Mumbai continue with the vision of providing achieved by tweaking the factors Currently, the biggest factor affecting will be witnessed from the supply Metropolitan Region (MMR), Delhi affordable luxury homes, keeping in affecting the same: sales is the unaffordability of the side. One can expect affordable NCR and Bengaluru, it was observed line with Budget 2017's impetus to homebuyers. After the launch of the housing projects to come up within that the affordable housing scheme Affordable Housing.
14 15 Affordable Housing Know your customer!
Key locations: A ordable housing Pune • Faridabad: Palwal, Sector 81, Key projects: 82, 85, 87, 89 Kenworth Homes, Obili Smart Key locations: Key developers: Homes, Virgin County, Arcadia, Wagholi, Wakad, Moshi, Hadapsar, Supertech Limited, Amrapali Metropolis Chakan, Hinjewadi, Kharadi, Undri, Group, Jaypee, Gaursons India, Talegaon Dabhade Mahagun, DLF Bengaluru Key developers: Key projects: Key locations: Magarpatta City, Xrbia Developer, Kosmos, Eco Village, Cape Town, Mysore Road, Yelahanka, Kolte Patil Developers, Kumar My Woods, Gulmohar Woods, Red Whitefield, DevanahaIIi, Properties, Paranjape Schemes Apple Homez, Tierea, Basera, Thanisandra, Electronic City, Key projects: Global Heights Chandapura, Kumbalgodu, Megapolis, XRBIA Hinjewadi, Kanakapura Road, Magadi Road Aapla Ghar, Lodha Belmondo, Kolkata Key developers: Godrej Infinity Key locations: Provident Housing, Tata Housing, Shriram Properties, GM Infinite Ahmedabad Rajarhat, Maheshtala, Barasat Hatisala, Madhyamgram, Baruipur, Dwelling, New Haven Key locations: Sonarpur, Uttarpara, Howrah, Key projects: Naroda, Changodar, Narol, Narendrapur, Garia Provident Sunwort, Shriram Changodar, Sarkhej Road, Vadsar, Key developers: Smrithi, Prestige Falcon, Welworth Shella Narol, Jagatpur, Bavla Hiland Group (Kolkata), Siddha City, DLF Woodland Heights, Rising Key developers: Group, Srijan Realty, Shapoorji City TATA Housing, Godrej Properties, Pallonji, Shriram Properties, Merlin Safal Construction (BSafal), Safal Group, Magnolia Infrastructure Chennai Construction (HN Safal), Savvy Development, Dharitri Infraventure, Key locations: Infrastructures, Adani Group PS Group Old Mahabalipuram Road, Key projects: Key projects: Sriperumbudur, Kelambakkam, Swaminarayan Park, Aakash Hiland Greens, Dharitri Universia Oragadam, Pudupakkam, MMR Residency, Godrej Garden City- Shriram Grand City, Chander Hut, Perambur, East Coast Road, Affordable Housing Scheme, Sanhita, Genexx Valley, Guduvancheri Key locations: Atlantis Park, Kesar City, Shiv Shukhobrishti, Greenfield City Key developers: Palghar, Boisar, Shahapur, Neral, Ugati City Vangani, Dronagiri, Badlapur, VGN Property Developers, Hyderabad Unitech, Mahindra Lifespaces, Ambernath, Dombivali, Panvel NCR Key locations: Amarprakash Group, Provident Key developers: Key locations: Miyapur, Manikonda, Kukatpally, Housing, Akshaya Homes Tata Value Homes, HDIL, Lodha • Gurugram: Dharuhera, Sohna Rajendra Nagar, Gachibowli, Key projects: Group, Runwal Group, Nirmal Road, Manesar Nallagandla, Chandanagar, Lifestyle, Godrej Properties, Mahindra World City, Today, Cosmo Nizampet, Kondapur, Kompally Mahindra Lifespaces • Greater Noida - Knowledge City, Lotus Pond, Uni Homes Park-5, Yamuna Expressway Key developers: Key projects: • Noida: Sector 134, 151, 137, 129 Provident Housing, My Home New Haven, Paradise City, Nirmal Constructions, Aparna Lifestyle City, Pallava City, • Ghaziabad: NH-24, Raj Nagar Constructions and Estates, Happinest, Ramrajya Extension, Indraprastha Yojna Janpriya Group, Obili Infrastructure
16 17 Affordable Housing Know your customer!
Key locations: A ordable housing Pune • Faridabad: Palwal, Sector 81, Key projects: 82, 85, 87, 89 Kenworth Homes, Obili Smart Key locations: Key developers: Homes, Virgin County, Arcadia, Wagholi, Wakad, Moshi, Hadapsar, Supertech Limited, Amrapali Metropolis Chakan, Hinjewadi, Kharadi, Undri, Group, Jaypee, Gaursons India, Talegaon Dabhade Mahagun, DLF Bengaluru Key developers: Key projects: Key locations: Magarpatta City, Xrbia Developer, Kosmos, Eco Village, Cape Town, Mysore Road, Yelahanka, Kolte Patil Developers, Kumar My Woods, Gulmohar Woods, Red Whitefield, DevanahaIIi, Properties, Paranjape Schemes Apple Homez, Tierea, Basera, Thanisandra, Electronic City, Key projects: Global Heights Chandapura, Kumbalgodu, Megapolis, XRBIA Hinjewadi, Kanakapura Road, Magadi Road Aapla Ghar, Lodha Belmondo, Kolkata Key developers: Godrej Infinity Key locations: Provident Housing, Tata Housing, Shriram Properties, GM Infinite Ahmedabad Rajarhat, Maheshtala, Barasat Hatisala, Madhyamgram, Baruipur, Dwelling, New Haven Key locations: Sonarpur, Uttarpara, Howrah, Key projects: Naroda, Changodar, Narol, Narendrapur, Garia Provident Sunwort, Shriram Changodar, Sarkhej Road, Vadsar, Key developers: Smrithi, Prestige Falcon, Welworth Shella Narol, Jagatpur, Bavla Hiland Group (Kolkata), Siddha City, DLF Woodland Heights, Rising Key developers: Group, Srijan Realty, Shapoorji City TATA Housing, Godrej Properties, Pallonji, Shriram Properties, Merlin Safal Construction (BSafal), Safal Group, Magnolia Infrastructure Chennai Construction (HN Safal), Savvy Development, Dharitri Infraventure, Key locations: Infrastructures, Adani Group PS Group Old Mahabalipuram Road, Key projects: Key projects: Sriperumbudur, Kelambakkam, Swaminarayan Park, Aakash Hiland Greens, Dharitri Universia Oragadam, Pudupakkam, MMR Residency, Godrej Garden City- Shriram Grand City, Chander Hut, Perambur, East Coast Road, Affordable Housing Scheme, Sanhita, Genexx Valley, Guduvancheri Key locations: Atlantis Park, Kesar City, Shiv Shukhobrishti, Greenfield City Key developers: Palghar, Boisar, Shahapur, Neral, Ugati City Vangani, Dronagiri, Badlapur, VGN Property Developers, Hyderabad Unitech, Mahindra Lifespaces, Ambernath, Dombivali, Panvel NCR Key locations: Amarprakash Group, Provident Key developers: Key locations: Miyapur, Manikonda, Kukatpally, Housing, Akshaya Homes Tata Value Homes, HDIL, Lodha • Gurugram: Dharuhera, Sohna Rajendra Nagar, Gachibowli, Key projects: Group, Runwal Group, Nirmal Road, Manesar Nallagandla, Chandanagar, Lifestyle, Godrej Properties, Mahindra World City, Today, Cosmo Nizampet, Kondapur, Kompally Mahindra Lifespaces • Greater Noida - Knowledge City, Lotus Pond, Uni Homes Park-5, Yamuna Expressway Key developers: Key projects: • Noida: Sector 134, 151, 137, 129 Provident Housing, My Home New Haven, Paradise City, Nirmal Constructions, Aparna Lifestyle City, Pallava City, • Ghaziabad: NH-24, Raj Nagar Constructions and Estates, Happinest, Ramrajya Extension, Indraprastha Yojna Janpriya Group, Obili Infrastructure
16 17 Affordable Housing Know your customer!
Part II
Customer FIGURE 6 insight
Over the years, the real estate North market for variety of reasons has • NCR become more customer driven. End Chandigarh users have emerged as potential • Chandigarh NCR buyers of affordable housing • Jaipur segment and thus their role as • Lucknow purchase decision makers is very Jaipur important for the success of any Lucknow East project. Measuring their satisfaction or dissatisfaction have been • Bhubaneshwar affecting the sales of affordable • Ranchi housing projects. For example, if • Kolkata Ranchi existing customers propagate good Ahmedabad words about their homes/projects West Kolkata among peers, their Indore recommendation immediately • Mumbai
catches attention of others. On the • Pune Bhubneshwar other hand, bad words may fail to • Ahmedabad Mumbai attract customers towards the • Indore Pune project. Therefore, measuring customers satisfaction/ South Hyderabad dissatisfaction are extremely crucial. • Bengaluru Knight Frank conducted an • Chennai extensive primary research exercise across 15 Tier 1 and Tier 2 cities in • Hyderabad India. • Kochi Bengaluru Chennai • Coimbatore The details of the cities covered from each of the zones is as follows: Coimbatore Kochi
18 19 Affordable Housing Know your customer!
Part II
Customer FIGURE 6 insight
Over the years, the real estate North market for variety of reasons has • NCR become more customer driven. End Chandigarh users have emerged as potential • Chandigarh NCR buyers of affordable housing • Jaipur segment and thus their role as • Lucknow purchase decision makers is very Jaipur important for the success of any Lucknow East project. Measuring their satisfaction or dissatisfaction have been • Bhubaneshwar affecting the sales of affordable • Ranchi housing projects. For example, if • Kolkata Ranchi existing customers propagate good Ahmedabad words about their homes/projects West Kolkata among peers, their Indore recommendation immediately • Mumbai catches attention of others. On the • Pune Bhubneshwar other hand, bad words may fail to • Ahmedabad Mumbai attract customers towards the • Indore Pune project. Therefore, measuring customers satisfaction/ South Hyderabad dissatisfaction are extremely crucial. • Bengaluru Knight Frank conducted an • Chennai extensive primary research exercise across 15 Tier 1 and Tier 2 cities in • Hyderabad India. • Kochi Bengaluru Chennai • Coimbatore The details of the cities covered from each of the zones is as follows: Coimbatore Kochi
18 19 Affordable Housing Know your customer!
The key purpose of the research was The key target segments for the Interviews with Purchasers and Age as follows: primary interactions were Purchasers Intenders were equally spread across and Intenders of affordable housing various types/categories of 23-25 years 26-35 years 36-45 years 46-55 years 56-65 years 66+ years • Customer responses on various projects, i.e. affordable housing projects, which factors relating to affordable are as follows: housing • End users who have made • Choices, preferences and need purchases and are residents of • Absolute Budget Housing gaps of customers affordable residential housing Cost of the house/apartment is projects less than INR 2 million • Perception towards dominant developer brands in affordable • Intenders of affordable housing • Value Housing housing projects, i.e. people who intend to Cost of the house/apartment is buy into affordable housing between INR 2 - 3.5 million The engagement methods primarily project within 1 to 1.5 years and used were: • Premium Affordable Housing are already interacting with Cost of the house/apartment is i. Focus Group Discussions (FGDs) multiple affordable housing between INR 3.5 - 6 million 6% 45% 33% 13% 2% 1% – Qualitative Research brands for purchase ii. Structured Questionnaires based interactions – Quantitative Research Current residence and need gaps
FIGURE 8 FIGURE 9 Pro le of the people surveyed Details of current residence Type of current residence
FIGURE 7 Ownership of 13% Gender Occupation house makes me feel 27% secured 65%
55% My own house is 26% 32% my own long- 79% term asset Male 16% 16% 3% 14% 4% 12% 2% Owned Leased Parental Apartment/Flat Builder floor Independent House 8% Row House Gated Villa 21% 7% Female Source: Knight Frank India Primary Research Source: Knight Frank India Primary Research
It is observed that more than 50 per cent people in India In India, ‘Apartment/Flat’ is the most popular type of residence live in their own houses, while almost 30 per cent people followed by ‘Independent House’ concept. Apartment/flat has live on rent. Living in an own house gives a sense of become deep rooted, at least in bigger cities, which is an security and content to people as against living in important parameter of affordability, while independent rading alaried alaried alaried - Retail S S S - T
Business Business Business someone else's house. houses are costly and prevalent only in very few cities in the ollar worker professional professional elf employed country. Builder floor, gated villa, row houses are not so S - Manufacturing non-professional
Blue c common in India as compared to other countries.
20 21 Affordable Housing Know your customer!
The key purpose of the research was The key target segments for the Interviews with Purchasers and Age as follows: primary interactions were Purchasers Intenders were equally spread across and Intenders of affordable housing various types/categories of 23-25 years 26-35 years 36-45 years 46-55 years 56-65 years 66+ years • Customer responses on various projects, i.e. affordable housing projects, which factors relating to affordable are as follows: housing • End users who have made • Choices, preferences and need purchases and are residents of • Absolute Budget Housing gaps of customers affordable residential housing Cost of the house/apartment is projects less than INR 2 million • Perception towards dominant developer brands in affordable • Intenders of affordable housing • Value Housing housing projects, i.e. people who intend to Cost of the house/apartment is buy into affordable housing between INR 2 - 3.5 million The engagement methods primarily project within 1 to 1.5 years and used were: • Premium Affordable Housing are already interacting with Cost of the house/apartment is i. Focus Group Discussions (FGDs) multiple affordable housing between INR 3.5 - 6 million 6% 45% 33% 13% 2% 1% – Qualitative Research brands for purchase ii. Structured Questionnaires based interactions – Quantitative Research Current residence and need gaps
FIGURE 8 FIGURE 9 Pro le of the people surveyed Details of current residence Type of current residence
FIGURE 7 Ownership of 13% Gender Occupation house makes me feel 27% secured 65%
55% My own house is 26% 32% my own long- 79% term asset Male 16% 16% 3% 14% 4% 12% 2% Owned Leased Parental Apartment/Flat Builder floor Independent House 8% Row House Gated Villa 21% 7% Female Source: Knight Frank India Primary Research Source: Knight Frank India Primary Research
It is observed that more than 50 per cent people in India In India, ‘Apartment/Flat’ is the most popular type of residence live in their own houses, while almost 30 per cent people followed by ‘Independent House’ concept. Apartment/flat has live on rent. Living in an own house gives a sense of become deep rooted, at least in bigger cities, which is an security and content to people as against living in important parameter of affordability, while independent rading alaried alaried alaried - Retail S S S - T
Business Business Business someone else's house. houses are costly and prevalent only in very few cities in the ollar worker professional professional elf employed country. Builder floor, gated villa, row houses are not so S - Manufacturing non-professional
Blue c common in India as compared to other countries.
20 21 Affordable Housing Know your customer!
Need gaps in current residence Purchase drivers and
While engaging with respondents, the following factors were highlighted as major considerations gaps in terms of their requirements in their current residence. According to homebuyers and intenders self-use, better location and expanding family size, amongst others, are the FIGURE 10 major drivers for their decision to buy houses.
52% More than 50 per cent people want to own a house for self- use indicating growing need for 'independence' and ‘long- 43% 43% 43% 41% 41% 40% 40% term security’. ‘Opportunity to move to a better location for access to better facilities’ and ‘increase in family size in near future' are other major reasons for purchasing affordable housing in India.
Purchase drivers All India
Need gaps Parking Adequate Playground/ Availability Distance The area is Space Water FIGURE 11 space security Children's of public from congested constraint/ shortage play area transport rail/metro Shortage of 53% station space 48% 44%
37% At least Security There I just need 34% parking for should be should be some space one car is so good CCTV and peace needed that I can camera of mind 23% along with get a good 19% 18% night sleep Security Guard
All India Source: Knight Frank India Primary Research Need gaps Keen to To move Increase To create To upgrade To move To get a taste Marriage have own to a better in family an asset my house out of a of lifestyle house for location size in joint family within gated Parking space continues to be a Other missing links with respect to current residence self-use for better near future community chronic problem on the residential facilities Some of the other concerns shared by them with respect to current residence are: front across India along with security that also comes out as a major Distance from children's Distance from the Distance from market/ concern. People feel that there is a More than 80 It is a 93 per cent It is a ‘Marriage’ as a need for parking facility for at least school/college workplace shopping centres per cent people stepping people long-term reason was stone to in Lucknow asset which one car and open space is required in in Hyderabad more popular and Jaipur finer living mention can be among the the residence which will lead to a expected sold later Proper access road Power cuts Distance from airport mention that purchase sense of comfort at home. Also, they they are keen increase intenders of feel that adequate security measures to have an own in family as affordable house reason for housing as should be undertaken to ensure Structure/layout Distance from hospitals, Lack of proper drainage for self-use purchase compared to safety of the residents. of the residence malls, multiplexes the purchasers Source: Knight Frank India Primary Research
22 23 Affordable Housing Know your customer!
Need gaps in current residence Purchase drivers and
While engaging with respondents, the following factors were highlighted as major considerations gaps in terms of their requirements in their current residence. According to homebuyers and intenders self-use, better location and expanding family size, amongst others, are the FIGURE 10 major drivers for their decision to buy houses.
52% More than 50 per cent people want to own a house for self- use indicating growing need for 'independence' and ‘long- 43% 43% 43% 41% 41% 40% 40% term security’. ‘Opportunity to move to a better location for access to better facilities’ and ‘increase in family size in near future' are other major reasons for purchasing affordable housing in India.
Purchase drivers All India
Need gaps Parking Adequate Playground/ Availability Distance The area is Space Water FIGURE 11 space security Children's of public from congested constraint/ shortage play area transport rail/metro Shortage of 53% station space 48% 44%
37% At least Security There I just need 34% parking for should be should be some space one car is so good CCTV and peace needed that I can camera of mind 23% along with get a good 19% 18% night sleep Security Guard
All India Source: Knight Frank India Primary Research Need gaps Keen to To move Increase To create To upgrade To move To get a taste Marriage have own to a better in family an asset my house out of a of lifestyle house for location size in joint family within gated Parking space continues to be a Other missing links with respect to current residence self-use for better near future community chronic problem on the residential facilities Some of the other concerns shared by them with respect to current residence are: front across India along with security that also comes out as a major Distance from children's Distance from the Distance from market/ concern. People feel that there is a More than 80 It is a 93 per cent It is a ‘Marriage’ as a need for parking facility for at least school/college workplace shopping centres per cent people stepping people long-term reason was stone to in Lucknow asset which one car and open space is required in in Hyderabad more popular and Jaipur finer living mention can be among the the residence which will lead to a expected sold later Proper access road Power cuts Distance from airport mention that purchase sense of comfort at home. Also, they they are keen increase intenders of feel that adequate security measures to have an own in family as affordable house reason for housing as should be undertaken to ensure Structure/layout Distance from hospitals, Lack of proper drainage for self-use purchase compared to safety of the residents. of the residence malls, multiplexes the purchasers Source: Knight Frank India Primary Research
22 23 Affordable Housing Know your customer!
Purchase considerations Other missing links with respect to current residence
However, while at the time of purchase homebuyers tend to put cost as the top Availability of Proximity to Playground and related most consideration followed by safety and public transport children's school infrastructure security. Homebuyers and intenders are also categorical that cost-related transparency like actual cost, Distance from market/ Proximity to local/ Proximity to extended maintenance charges, etc. should be shopping centres neighbourhood markets family/relatives mentioned right in the beginning to avoid complications later on.
Gardens and parks Proximity to Distance from the nearest FIGURE 12 hospitals and healthcare metro station / rail station
Considerations for purchase - All India
80% Anticipated growth of the Proximity to multiplexes, Location due to locality / returns on malls, etc. premiumness, investment connectivity, etc. 71%
Distance from the airport Other families who are 65% Presence of amenities such staying / neighbourhood 62% as swimming pool, etc. profile
53% Need gaps in uencing purchase considerations
Interestingly, a close linkage has been FIGURE 13 observed wherein need gaps mentioned by most of the people in their current residence emerge as Water top considerations too while looking shortage, Parking Adequate area is at the affordable housing property. space security congested
Cost Safety Proximity Vehicle Presence of the and to office/ parking of civic Top need gaps in current residence property Security workplace infra- structure Top considerations for purchase of such as residence roads, water The cost should supply not be a burden and there should Vehicle Safety Presence parking and of civic be no hidden Security infra- charge structure such as roads, water supply Source: Knight Frank India Primary Research
24 25 Affordable Housing Know your customer!
Purchase considerations Other missing links with respect to current residence
However, while at the time of purchase homebuyers tend to put cost as the top Availability of Proximity to Playground and related most consideration followed by safety and public transport children's school infrastructure security. Homebuyers and intenders are also categorical that cost-related transparency like actual cost, Distance from market/ Proximity to local/ Proximity to extended maintenance charges, etc. should be shopping centres neighbourhood markets family/relatives mentioned right in the beginning to avoid complications later on.
Gardens and parks Proximity to Distance from the nearest FIGURE 12 hospitals and healthcare metro station / rail station
Considerations for purchase - All India
80% Anticipated growth of the Proximity to multiplexes, Location due to locality / returns on malls, etc. premiumness, investment connectivity, etc. 71%
Distance from the airport Other families who are 65% Presence of amenities such staying / neighbourhood 62% as swimming pool, etc. profile
53% Need gaps in uencing purchase considerations
Interestingly, a close linkage has been FIGURE 13 observed wherein need gaps mentioned by most of the people in their current residence emerge as Water top considerations too while looking shortage, Parking Adequate area is at the affordable housing property. space security congested
Cost Safety Proximity Vehicle Presence of the and to office/ parking of civic Top need gaps in current residence property Security workplace infra- structure Top considerations for purchase of such as residence roads, water The cost should supply not be a burden and there should Vehicle Safety Presence parking and of civic be no hidden Security infra- charge structure such as roads, water supply Source: Knight Frank India Primary Research
24 25 Affordable Housing Know your customer!
Apprehensions while selecting an a ordable housing project Top brands – All India
Safety of the residents is the top ‘Construction quality’ and ‘Timely affordable housing property across FIGURE 15 most apprehension that people have delivery’ come out as other major most of India. 32%
while choosing a place to stay. apprehensions while selecting 31% 4% 25% 2 23% FIGURE 14 20% 20% 18% 18% 73% 71% 15% 65% 64% 64% 1% 1 10%
56% 9% 49% 5% 5% 5% 5% 5% 4% 3% 3% 3% 3% 2% 2% 2% 1% 1% 1%
23% Ashiana ATS Godrej Lodha Mahindra Prestige Provident PS Signature TATA Value Brands Group Homekraft Properties Group Lifespaces Group Housing Group Global Homes
TOM Spontaneous Aided All India
Apprehensions Safety Quality of Timely delivery Reliability of Return on Quality of Maintenance Other owners I think big brands Provident Housing provides Tata is a well-known and construction of property the developer investment electrical, of property who would Security bathroom occupy the are expensive good homes at affordable brand. All facilities in fittings used building hence prefer to prices. Their prices do not the home will be interact with the differ by area. They are assured and it will be local players. reliable. value for money.
Do not want I can wait for Source: Knight Frank India Primary Research anything a maximum China-made period of six At a national level, Tata Value Homes has the highest level of recall and visibility. months for possession of property Reliability and trustworthiness – Leading to higher conversion rate
FIGURE 16
Provident Housing 4% 2 provides good homes at 22% affordable prices. They are reliable. Almost everybody
Brand awareness, TABLE 3 who interacts with them 17% 15%
14% 14% ends up buying. perception and Unaided awareness Aided with the help of a list
of brands 10% 9% 9% 9% 8%
satisfaction TOP OF MIND AWARENESS SPONTANEOUS AWARENESS AIDED AWARENESS: 7% 6% 6% 6% 5%
(TOM): (Spontaneous): Here, a person is aided with a 4% 4%
Human expressions towards This is the first brand The bunch of brands list of brands by the 2% 1% brand familiarity mentioned by a person mentioned after the first brand interviewer and the ones that when multiple names come are the ones that a person is he is aware of (other than the Ashiana ATS Godrej Lodha Mahindra Prestige Provident PS Signature TATA Value to mind spontaneously aware of ones spontaneously Brands Group Homekraft Properties Group Lifespaces Group Housing Group Global Homes When an interviewer questions an mentioned) form a part of the interviewee about brands, then the aided awareness Brand interaction for purchase Bought/ Strongly consider Source: Knight Frank India Primary Research expression towards brand familiarity Source: Knight Frank India Primary Research of the interviewee can be categorised as follows: This study has been able to identify affordable housing segment. Provident Housing though not as strong position as a reliable and generic and household names like 135 brands through the eyes of However, only TOP brands have been visible as generic brands like Tata, trustworthy brand. Interestingly, there Tata, Mahindra, Godrej, etc. but have home-buying consumers in the considered for this analysis. Mahindra and Godrej, it holds a are many brands which are not also made a mark in the minds of consumers of affordable housing.
26 27 Affordable Housing Know your customer!
Apprehensions while selecting an a ordable housing project Top brands – All India
Safety of the residents is the top ‘Construction quality’ and ‘Timely affordable housing property across FIGURE 15 most apprehension that people have delivery’ come out as other major most of India. 32% while choosing a place to stay. apprehensions while selecting 31% 4% 25% 2 23% FIGURE 14 20% 20% 18% 18% 73% 71% 15% 65% 64% 64% 1% 1 10%
56% 9% 49% 5% 5% 5% 5% 5% 4% 3% 3% 3% 3% 2% 2% 2% 1% 1% 1%
23% Ashiana ATS Godrej Lodha Mahindra Prestige Provident PS Signature TATA Value Brands Group Homekraft Properties Group Lifespaces Group Housing Group Global Homes
TOM Spontaneous Aided All India
Apprehensions Safety Quality of Timely delivery Reliability of Return on Quality of Maintenance Other owners I think big brands Provident Housing provides Tata is a well-known and construction of property the developer investment electrical, of property who would Security bathroom occupy the are expensive good homes at affordable brand. All facilities in fittings used building hence prefer to prices. Their prices do not the home will be interact with the differ by area. They are assured and it will be local players. reliable. value for money.
Do not want I can wait for Source: Knight Frank India Primary Research anything a maximum China-made period of six At a national level, Tata Value Homes has the highest level of recall and visibility. months for possession of property Reliability and trustworthiness – Leading to higher conversion rate
FIGURE 16
Provident Housing 4% 2 provides good homes at 22% affordable prices. They are reliable. Almost everybody
Brand awareness, TABLE 3 who interacts with them 17% 15%
14% 14% ends up buying. perception and Unaided awareness Aided with the help of a list
of brands 10% 9% 9% 9% 8% satisfaction TOP OF MIND AWARENESS SPONTANEOUS AWARENESS AIDED AWARENESS: 7% 6% 6% 6% 5%
(TOM): (Spontaneous): Here, a person is aided with a 4% 4%
Human expressions towards This is the first brand The bunch of brands list of brands by the 2% 1% brand familiarity mentioned by a person mentioned after the first brand interviewer and the ones that when multiple names come are the ones that a person is he is aware of (other than the Ashiana ATS Godrej Lodha Mahindra Prestige Provident PS Signature TATA Value to mind spontaneously aware of ones spontaneously Brands Group Homekraft Properties Group Lifespaces Group Housing Group Global Homes When an interviewer questions an mentioned) form a part of the interviewee about brands, then the aided awareness Brand interaction for purchase Bought/ Strongly consider Source: Knight Frank India Primary Research expression towards brand familiarity Source: Knight Frank India Primary Research of the interviewee can be categorised as follows: This study has been able to identify affordable housing segment. Provident Housing though not as strong position as a reliable and generic and household names like 135 brands through the eyes of However, only TOP brands have been visible as generic brands like Tata, trustworthy brand. Interestingly, there Tata, Mahindra, Godrej, etc. but have home-buying consumers in the considered for this analysis. Mahindra and Godrej, it holds a are many brands which are not also made a mark in the minds of consumers of affordable housing.
26 27 Affordable Housing Know your customer!
Key in uencing parameters while purchasing a ordable housing
FIGURE 17
77% 72%
56% 56% 56% 55% 55% 49% 44% 38% 36%
Rank 1 2 3 4 5 6 7 8 9 10 11
All India Product Brand Brand Quality of Transparency Features Delivery No. of Pre-sales Regulatory Assistance quality name visibility completed and clarity and track completed service compliance by developer projects in pricing amenities record projects such as to seek provided RERA, etc. loans The product quality is I go by revealed by the brand reviews name. If the brand and decide name is good, it is whether to The mention of features/amenities, delivery track understood that they go with the record and pre-sales service is significantly higher have used good quality brand or among purchasers of affordable housing as products. not. compared to intenders.
Source: Knight Frank India Primary Research
At a national level, ‘Product Important factors considered for purchase and corresponding quality’ and ‘Brand name’ are brand scoring (among purchasers of a ordable housing) – All India the prime factors considered while selecting affordable TABLE 4 housing. Other prime factors related to visibility of the brand, Ashiana ATS Godrej Lodha Mahindra Prestige Provident PS Signature TATA Value Tata Value Homes, Godrej Properties Group Homekraft Properties Group Lifespaces Group Housing Group Global Homes past experience, project and Mahindra Lifespaces have high amenities and pricing are also Brand name 71 67 93 50 93 80 76 54 100 90 brand awareness, as well as visibility, considering their presence across important. Delivery track record 29 56 74 33 80 47 92 46 17 57 many business and product verticals Brand visibility 88 61 63 33 73 60 64 54 17 66 beyond real estate. Regulatory compliance 24 39 19 50 7 40 40 46 50 36 While brand awareness is an Product quality 100 70 74 67 93 67 76 100 83 80 important parameter in all consumer Quality of completed projects 65 84 67 50 73 33 68 8 83 48 products (housing not being an Features and amenities provided 47 74 70 33 87 67 76 46 50 57 exception), delivery track record No. of completed projects 29 47 56 33 67 40 80 100 50 56 which is an important parameter exclusive to real estate is very strong Transparency and clarity in pricing 24 58 44 67 80 33 64 8 50 49 for Provident Housing as compared Pre-sales service 6 37 44 50 60 33 84 92 - 56 to other brands. Assistance by developer to seek loans - 49 37 33 67 27 56 - 17 48
Source: Knight Frank India Primary Research
28 29 Affordable Housing Know your customer!
Overall customer satisfaction with brands Reading customers mind: – All India Extremely critical for future sales
Real Estate market is changing for a Therefore, reading the customers’ developed expertise in creating To understand the overall customer crucial factors, such as lifestyle of the Customer satisfaction score variety of reasons. It is increasingly minds will be key to future success customer centric market research- satisfaction level, Knight Frank has targeted population, preferences and evident that the market is becoming and there are various methods and based products like those mentioned interacted with purchasers of choices of the end users and TABLE 5 more customer oriented. Actual end tools to track customer behaviour on above. Such studies help in affordable housing projects across corresponding customer satisfaction, users have started playing a key role a regular basis. Market research measuring customers minds deeply cities. These homebuyers were end residential environment, etc. 9.5 Provident Housing in the marketplace than ever before. based products are available to track and create customers insights. users who had purchased the generally take a back seat. However, Customers have been increasingly and gauge customers at regular Knight Frank India has in-house property of the brand and over a period of time the market has taking purchase decisions based on intervals. Some of them are: expertise and have been undertaking experienced living in their respective been gradually evolving in which various factors like product quality, such studies on regular basis. properties. These customers have affordable housing is more linked with 9.5 Mahindra Lifespaces price, brand credibility, features and Mr. Sugata Sarkar, with long also interacted with at least 2-3 other meeting the aspirations of India's Customers Satisfaction amenities, services offered by the experience in Market Research, is brands before purchasing their home. growing middle class than only driven Analysis – for measuring developers etc. Even post purchase leading the team. His contact details Therefore, they are in a position to by cost. satisfaction/ dissatisfaction of 9.4 PS Group issues like post-sales services are as under: assess the performances of these existing customers and Consequently, the intensity of including execution of promised brands right from pre-sales to post- reasons thereof. competition among the suppliers has features and amenities are sales stages on various parameters Sugata Sarkar sharpened, which is quite evident influencing future sales and thus Measuring Net Promoter already analysed above. Senior Director 9.3 Prestige Group Score (NPS) – to understand from the mean satisfaction scores of businesses of developers. Consulting & Market Research whether existing customers Reliability, trustworthiness, brand all the above-mentioned brands. [email protected] Such transformation will continue are promoting the brand / awareness and visibility as well as Developers who have taken a more +91 (022) 6745 0101 / 99992 66076 with customers becoming more developers among their peer past track record have played a very holistic approach while developing Lodha Group 9.0 discerning and intensify the market important role in deriving the brand their affordable housing projects have group. as end users start to see real estate satisfaction score by the scored high on the 'Quality of Life' as a service, contrary to the hitherto Lost Customer Analysis – for homebuyers. index by blending socio-economic practice. In this context it will be measuring satisfaction/ infrastructure facilities such as 9.0 ATS Homekraft Higher satisfaction scores indicate extremely important for developers to dissatisfaction of lost schools, offices, shopping and leisure that brands have met the need and understand the thought process of customers and reasons activities within the projects. Top expectation of the customers. their existing customers (both pre thereof. brands like Provident Housing, and post sales levels) as well as the Mahindra Lifespaces, PS Group and 9.0 Signature Global Due to the recent policy push by the lost customers. Satisfaction and Conducting research-based studies Prestige Group have recognised the government, as well as rising demand dissatisfaction of customers will will not only influence businesses changing expectations of the in the market place, many developers influence the future sales of directly in terms of sales customers and thus recorded a have either already forayed into the 8.6 TATA Value Homes properties significantly. Whether augmentation, but also help in higher satisfaction score among the ‘Affordable Housing’ sector or are existing customers are happy or strengthening brand perception, end users. seriously exploring the possibility of unhappy and corresponding reasons, improvement of services and reasons entering into this segment of the real whether they are promoting the brand for losing potential customers to estate sector. 8.4 Godrej Properties of their developers among their peer competitors. Interactions with group, why customers have not customers can be conducted through Till date the typical approach towards bought a property will help various methods like online, any affordable housing project has developers in designing future telephonic and face-to-face. always focussed only on one key 8.0 Ashiana Group strategies and making corrective element – cost reduction. Other Realising this fundamental change of actions. Mean satisfaction score the market, Knight Frank India has
30 31 Affordable Housing Know your customer!
Overall customer satisfaction with brands Reading customers mind: – All India Extremely critical for future sales
Real Estate market is changing for a Therefore, reading the customers’ developed expertise in creating To understand the overall customer crucial factors, such as lifestyle of the Customer satisfaction score variety of reasons. It is increasingly minds will be key to future success customer centric market research- satisfaction level, Knight Frank has targeted population, preferences and evident that the market is becoming and there are various methods and based products like those mentioned interacted with purchasers of choices of the end users and TABLE 5 more customer oriented. Actual end tools to track customer behaviour on above. Such studies help in affordable housing projects across corresponding customer satisfaction, users have started playing a key role a regular basis. Market research measuring customers minds deeply cities. These homebuyers were end residential environment, etc. 9.5 Provident Housing in the marketplace than ever before. based products are available to track and create customers insights. users who had purchased the generally take a back seat. However, Customers have been increasingly and gauge customers at regular Knight Frank India has in-house property of the brand and over a period of time the market has taking purchase decisions based on intervals. Some of them are: expertise and have been undertaking experienced living in their respective been gradually evolving in which various factors like product quality, such studies on regular basis. properties. These customers have affordable housing is more linked with 9.5 Mahindra Lifespaces price, brand credibility, features and Mr. Sugata Sarkar, with long also interacted with at least 2-3 other meeting the aspirations of India's Customers Satisfaction amenities, services offered by the experience in Market Research, is brands before purchasing their home. growing middle class than only driven Analysis – for measuring developers etc. Even post purchase leading the team. His contact details Therefore, they are in a position to by cost. satisfaction/ dissatisfaction of 9.4 PS Group issues like post-sales services are as under: assess the performances of these existing customers and Consequently, the intensity of including execution of promised brands right from pre-sales to post- reasons thereof. competition among the suppliers has features and amenities are sales stages on various parameters Sugata Sarkar sharpened, which is quite evident influencing future sales and thus Measuring Net Promoter already analysed above. Senior Director 9.3 Prestige Group Score (NPS) – to understand from the mean satisfaction scores of businesses of developers. Consulting & Market Research whether existing customers Reliability, trustworthiness, brand all the above-mentioned brands. [email protected] Such transformation will continue are promoting the brand / awareness and visibility as well as Developers who have taken a more +91 (022) 6745 0101 / 99992 66076 with customers becoming more developers among their peer past track record have played a very holistic approach while developing Lodha Group 9.0 discerning and intensify the market important role in deriving the brand their affordable housing projects have group. as end users start to see real estate satisfaction score by the scored high on the 'Quality of Life' as a service, contrary to the hitherto Lost Customer Analysis – for homebuyers. index by blending socio-economic practice. In this context it will be measuring satisfaction/ infrastructure facilities such as 9.0 ATS Homekraft Higher satisfaction scores indicate extremely important for developers to dissatisfaction of lost schools, offices, shopping and leisure that brands have met the need and understand the thought process of customers and reasons activities within the projects. Top expectation of the customers. their existing customers (both pre thereof. brands like Provident Housing, and post sales levels) as well as the Mahindra Lifespaces, PS Group and 9.0 Signature Global Due to the recent policy push by the lost customers. Satisfaction and Conducting research-based studies Prestige Group have recognised the government, as well as rising demand dissatisfaction of customers will will not only influence businesses changing expectations of the in the market place, many developers influence the future sales of directly in terms of sales customers and thus recorded a have either already forayed into the 8.6 TATA Value Homes properties significantly. Whether augmentation, but also help in higher satisfaction score among the ‘Affordable Housing’ sector or are existing customers are happy or strengthening brand perception, end users. seriously exploring the possibility of unhappy and corresponding reasons, improvement of services and reasons entering into this segment of the real whether they are promoting the brand for losing potential customers to estate sector. 8.4 Godrej Properties of their developers among their peer competitors. Interactions with group, why customers have not customers can be conducted through Till date the typical approach towards bought a property will help various methods like online, any affordable housing project has developers in designing future telephonic and face-to-face. always focussed only on one key 8.0 Ashiana Group strategies and making corrective element – cost reduction. Other Realising this fundamental change of actions. Mean satisfaction score the market, Knight Frank India has
30 31 About RICS: About Knight Frank:
Confidence through professional standards Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has RICS promotes and enforces the highest professional more than 18,170 people operating from 523 offices across qualifications and standards in the valuation, development 60 markets. The Group advises clients ranging from and management of land, real estate, construction and individual owners and buyers to major developers, investors infrastructure. Our name promises the consistent delivery and corporate tenants. of standards - bringing confidence to markets and effecting positive change in the built and natural In India, Knight Frank is headquartered in Mumbai and has environments. more than 1,000 experts across Bengaluru, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by Americas strong research and analytics, our experts offer a Latin America North America comprehensive range of real estate services across advisory, [email protected] [email protected] valuation and consulting, transactions (residential, Asia Pacific commercial, retail, hospitality, land & capitals), facilities management and project management. Australasia Greater China (Hong Kong) [email protected] [email protected] For more information, visit www.knightfrank.co.in Greater China (Shanghai) Japan [email protected] [email protected] South Asia Southeast Asia [email protected] [email protected] EMEA
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CIN No - U74140MH1995PTC093179