According to a recent survey, 65% of homebuyers believe that it is the best time to buy a home as property prices have been constant for a few years, home loan interest rates are low and many builders are offering great discounts.
The Covid-19 pandemic has impacted almost every sector and industry across the world, including real estate. However, as there lie some opportunities in every crisis, the Coronavirus pandemic too looks no different, and many believe that it may be a good time to buy one’s dream home because of various reasons. So, is it really so?
According to a recent survey conducted by Nobroker.com, 65% of homebuyers believe that it is the best time to buy a home as property prices have been constant for a few years, home loan interest rates are low and many builders are offering great discounts. With most professionals working from home with greater time at their disposal, they have the much-needed time to do the preliminary research.
Although the outlook for real estate looks less promising due to the current pandemic, about 54% of consumers are expecting a significant drop in the prices of the residential properties as the market currently has a lot of unsold inventory. Consumers are of the view that developers would want to get rid of piled-up inventory to boost their cash flows.
The purpose of the survey was to check the impact of Covid-19 on consumer sentiment. It was given out to potential buyers and tenants to understand how their priorities have shifted. 11,580 people responded to the survey, which was conducted across the cities of Bangalore, Mumbai, Pune, Hyderabad, Chennai and Delhi NCR.
As per the survey, budget, safety and water supply stood out as key considerations for finalising a property. About 36% of consumers are looking to purchase a house within 3 months’ time-frame and nearly 28% are looking at a time-frame of 3 to 6 months.
59% consumers stated that they would prefer to live in an apartment society over an independent house as societies offer more amenities. Also, water supply, groceries, power back-up and safety are less of a concern in a society. As many as 92% are looking to buy residential properties.
NoBroker’s annual survey had indicated a steady rise of interest in commercial properties as an investment option, but the current crisis has tilted the choice in favour of residential accommodation. 86% consumers prefer ready-to-move-in homes as there is some amount of distrust in under-construction projects due to uncertain timelines. Unavailability of construction workers has worsened the situation in some scenarios. 2BHKs are still the most popular choice for about 48% of consumers.
Improvisation in times of quarantine
Interestingly, many consumers have quickly adapted to shortlisting of properties via video walkthroughs. 45% consumers cited that the process is less time-consuming, economical and more efficient.
Job uncertainty and liquidity crunch were cited as the major hindrances in buying a house. This is also probably why there is greater demand for houses within the budget of Rs 60 lakh. It is also probably why 79% of consumers are looking to purchase a property without using broker services.
“The current situation has allowed some doubts to be crept in, but it has also brought consumers closer to realising the importance of owning a home. As India unlocks slowly, the lower interest rates and good deals have created a pent-up housing demand and many buyers believe it’s a great opportunity to buy their dream home,” the survey said.