Track2Realty exclusive survey on customer satisfaction
By: Team Track2Realty
8 out of every ten home buyers in the Indian cities are sulking with the unfair trade practices of the real estate developers. Only 20 per cent of the buyers said they received a defect-free home and timely possession. The low customer satisfaction index was as much evident with developers offering affordable housing as with luxury housing. But as a surprise pack most of the respondents, as high as 74 per cent said they would not mind investing in the stocks of these realty companies, since the absence of any regulatory mechanism will help these companies continue to grow with the unfair trade practices.
The Survey clearly points out that builders have faulted in satisfaction survey. Move-in date delays top the list of concerns cited by home buyers in Track2Realty survey. Â Poor construction quality and customer service problems ranked next. A large 70 per cent of the house buyers repent investing their life time savings on the house. 65 per cent of the home buyers, who have seen the property price appreciating, are still looking for a better house worth living. The prime drivers of this customer dissatisfaction was found to beâ€”
- Delayed possession
- Poor construction quality
- Customer Service Problems
- Floor Area & Carpet Area less than promised
- Hidden Cost of the developers
A shockingly high number of Indians are angry that the worth of their hard earned money has not been what they would have liked to. One in three, 31 per cent, have either filed a case in consumer court or are planning to do so against the developer. More than two in five, 43 per cent, of those who filed a case against the builder have even refused any out-of-court settlement in exchange of builderâ€™s promise of getting the home repaired. Seven in 10, 69 per cent, have serious issues with the facility management of the developer.
Two in three, 67 per cent, are sulking the extra amount they paid in hidden cost of the property. Â Three in five, 61 per cent, look at their home as more of a future investment than a place where they would like to spend the life by choice. Among the double income families almost nine out of 10, 87 per cent, are already looking for a better home and wonâ€™t mind disposing off the home that they so fondly bought within the last five years.
Majority of the home buyers, 77 per cent said they would never like to buy the property from the same developer. 92 per cent were so dissatisfied with the quality of construction that they said their preference would now be for the government housing. Buyers of new homes across the country are so disillusioned that the customer satisfaction score on a scale of 1,000 was a pathetic 212.
“It’s clear that new home buyers are sending a message that there is considerable room for improvement in how some builders handle what is probably the largest purchase consumers ever make,” said Rakesh Panini, a home buyer in Mumbai.
Additionally, the study noted that the importance of real estate agents has increased substantially in the sector, with developers relying on the negotiating skills of their chosen agent and help in navigating the market. The study found that builders who proactively communicate with buyers enjoy significantly higher levels of customer satisfaction than those who wait for customers to contact them.
The results were based on a set of 27 questions to the buyers of single-family homes in the past 5 years from 28 leading builders across the country. The answers were grouped into eight key factors of satisfaction, which were weighted according to how important buyers said they were. The survey found that “home readiness” is the No. 1 issue for buyers. That means the accuracy of the completion date, when the builder promised the home would be ready, and the condition of the home at the pre-delivery inspection and after. Builders who delivered homes on time did especially well in the survey because readiness was weighted at 23.8 per cent of the total score.
The second big issue is construction quality, weighted at 23.6 per cent, and includes how customers rate the quality of their homes in terms of raw materials used and finishing done. Next issue is how quickly builders handle customer complaints and post possession obligations as well as the general courtesy of their staff. These three account for almost 65 per cent, and they are clearly areas where customer expectations are not being fully met.
These are the findings of a ten city exclusive survey by Track2Realty. Track2Realty conducted this survey in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Ahmedabad, Jaipur, Patna, Kanpur, Allahabad and Indore between December 1 and 25. A structured questionnaire that was based on the satisfaction index and their choices and concerns was given to male and female respondents who belonged to a mix of qualitative and quantitative socio-economic groups.
However, the survey demography belonged predominantly to the middle and upper middle class of society, and that a significant number of respondents, even in the given tier-II and tier-III cities were buyers of mid segment houses. Majority of these buyers were first time buyers who had shifted to the new house either from parental homes or rented accommodation.Â While 62 per cent of the buyers were first time buyers, satisfaction was equally low with the second time home buyers. 38 per cent of these buyers who bought the second house and were wise enough to understand the developersâ€™ marketing jargon and hidden costs involved, were equally dissatisfied with their possession.
A total sample size of 2000 house buyers was initially targeted. Out of these 1672 samples were finally zeroed down and considered for analysis. Rest 328 respondents were not considered for evaluation since they either gave incomplete questionnaires or were rejected for non-seriousness of their choices.
The total sample size had 34 per cent females and 66 per cent males as a representative set. The surveying method was one-on-one interviews, in which the researchers explained the theme and purpose of the survey and then handed over the questionnaire to the respondents to be filled and returned the next day. All the researchers being the local residents of the city, they managed to assure the respondents complete anonymity.