NEW DELHI: Homebuyers are likely to slowly return to the market in the coming six months as real estate is still perceived as the preferred mode of investment, a report by National Real Estate Development Council (NAREDCO) and Housing.com points out.
According to ‘concerned yet positive – The Indian Real Estate Consumer (April – May 2020)’ report, real estate (35%) is still perceived as the preferred mode of investment, followed by gold (28%); fixed deposits (22%), stocks (16%).
“This pandemic has come as a rude setback for our industry and the allied sectors. In the current scenario, we can see a change in consumer behavior and perception, of owning a house with safe and secure surroundings, which will be the driving force for demand,” said Niranjan Hiranandani, founder-chairman, Hiranandani Group and National President – NAREDCO.
The survey was conducted in April and May 2020, through a random sampling technique for a fair representation across regions. The insights presented in the survey entirely represent the view of more than 3,000 potential homebuyers.
A majority of respondents surveyed (73%) comprise ‘first time homebuyers’, who are looking to buy a ‘ready-to-move-in-house’ for end-use and are from the age group of 25-45 years. While 60% of respondents opined that for the next six months, they would prefer a ready-to-move-in property, 21% said they were okay with a property with a delivery timeline of maximum one year.
“Our survey clearly shows that potential homebuyers who were searching for flats have pressed a pause button for the time being because of liquidity concerns and uncertainty over the COVID pandemic. But, a majority of them will gradually start returning to the market in the coming months,” said Dhruv Agarwala, CEO, Housing.com.
NAREDCO said that it believes, real estate will be ‘positive’ for both end-users and investors in the post-COVID-19 world. Those living in rental homes have realized the importance of being in their own homes while NRIs facing challenging times in their present domiciles are looking at creating a safe haven ‘back home’ in India. Demand for additional space for home offices is on the rise, with need for more efficient layouts. The importance of common amenities, business centers and more open spaces will be an inherent part of the new demand criteria in the post COVID-19 world.
“While the sector recalibrates the approach to stay afloat in these challenging times, we are moving towards a more digitally inclined world.The overall behavior of the consumer has changed to save more, spend less and invest smart model. Real estate has always been less volatile as compared to share markets making it the safest investment available, the preference of this new age home buyer has also changed owing to the crisis,” said Rajeev Talwar, Chairman, NAREDCO and CEO, DLF.
The survey findings suggest that majority (59 percent) of the respondents think that the overall economic scenario will either remain at the current levels or may slightly see some revival in the coming six months.
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