A consumer sentiment survey has revealed that close to 65% of homebuyers are back in the market now.
Amid the Coronavirus crisis, there is some good news for the real estate sector. A consumer sentiment survey has revealed that close to 65% of homebuyers are back in the market now. Out of these, 33% have started their journey as they feel it is a good time to purchase a home, while 32% are in the finalization stage, although 11% have completely dropped the idea of buying a property due to job and market uncertainty.
During the survey, conducted by 99acres.com, it was found that on the tenants side, 38% of tenants are looking out for a new house for larger spaces. While looking for a new rental place, the need for safety and hygiene has taken a leap due to the spreading virus. 78% of the tenants said they will add legal safeguards in the rental agreement regarding future uncertainties, and further, 76% agreed that COVID-19-free property is an extremely important factor for them.
When people are trying to co-live with the pandemic virus, owning a home is becoming a necessity for safety. 77% of the home buyers agreed that they are looking for a house for end-use, whereas, only 23% are willing to purchase for investment purposes. Further, ready-to-move property continues to be favorite as 64% of the homebuyers are preferring ready-to-move house.
There is an increased preference towards digital ways to buy or rent homes. However, the need for physical visits still persists but only for finalizing, and virtual tours will suffice for shortlisting, confirms 55% of the homebuyers and 60% of the tenants. In addition, 360 degrees self-exploratory tools topped as the most preferred option for virtual tours, followed by pre-recorded videos and live video calls with the seller.
Furthermore, 67% of homebuyers expect prices to go down significantly and another 20% are foreseeing a slight reduction. Despite this, real estate continues to be the most preferred asset to invest in. 76% of tenants believe the rental prices will also fall in the coming times.
With work from home becoming the new reality, proximity to the workplace, which was once a major concern, has dropped down in the list. However, proximity to key areas like market, hospital, and school, as well as safety were a couple of aspects that have taken over the minds of buyers and tenants while shortlisting a property.
Commenting on the same, Maneesh Upadhayaya, Chief Business Officer, 99acres, said, “65% buyers are in market now while only 38% were actively searching for houses post-Lockdown 1. In addition, buyers are still looking at real estate as the best asset to invest in. COVID-19 has further assisted in increasing the adoption of digital platforms with 55–60% buyers/tenants expressing preference for virtual visits and meets.”