With work-from-dwelling becoming a viable alternative today, a lot of potential homebuyers are searching at the peripheral places that provide larger properties and a much better way of life at somewhat cost-effective rates. Homebuyers preference to mitigate dangers is also at all-time higher with more than 61% preferring to obtain from branded developers even if it is somewhat costlier, reveals a CII-ANAROCK COVID-19 Sentiment Survey.
As per the survey, the preference for genuine estate as an asset class has when once again reached close to pre-COVID levels vis-à-vis the lockdown period in March and April when we saw a dip (to 48%) due to the-then prevailing uncertainties. The increasing preference is appropriately depicted in H2 2020 housing sales of ~80,400 units across the top rated 7 cities compared to 57,900 units in H1 2020, an boost of 39%.
Among different asset classes for investment like equities & mutual funds, FDs and gold, genuine estate continues to be the very first option with 57% respondents in favour of it. Interestingly, the stock marketplace – regardless of becoming volatile in nature – is the second preferred option with 24% votes.
Preference for gold saw a sudden rise in the course of the lockdown period with 18% in its favour then – substantially above FDs. However, in the present survey, we can see slight dip in its preference as just 12% respondents now favor it in the existing situation. Despite becoming danger-absolutely free, low interest prices has brought down investor interest in FDs and is now the final option amongst all other asset classes.
Commenting on the survey, Anuj Puri, Chairman, ANAROCK Group, mentioned, “Amidst the prevailing work-from-home culture and the economy showing green shoots of revival, we tried to gauge the mood of the prospective homebuyers and analyse their preferences. We saw that consumer preferences have altered significantly post the pandemic and new trends are seen to be emerging. Notably, real estate saw increasing interest against all other asset classes like stock market, FDs and gold post COVID. 62% respondents consider ‘now’ to be an ideal time for buying a home amidst prevailing lowest-best home loan rates and developer discounts & offers. Homeownership has gained top priority even for the millennials who previously shied away from it.”
In a important improvement, out of all respondents, 24% have currently booked their home although 62% think about ‘now’ to be an excellent time to enter the genuine estate marketplace.
The Indian residential marketplace is now noticed to be heavily dominated by finish-customers. As a lot of as 74% respondents searching to obtain a home now are carrying out it for self-use although just 26% are searching at it from an investment viewpoint. In comparison, in the course of the lockdown period, the share of investors was larger at 41%.
Ready-to-move-in home continues to be the most preferred (29% respondents) amongst the potential purchasers. However, in comparison to each pre-COVID and lockdown period surveys, we saw a dip in its preference – at least 17% given that the lockdown period and 6% given that the pre-COVID levels.
One important aspect influencing this transform could be the truth that post COVID, the new provide was largely dominated by branded developers and purchasers deemed it protected to obtain from them. Also, there is restricted inventory obtainable in the prepared category. Another doable purpose is that developers have doled out numerous discounts and delivers such as versatile payment plans for their below building projects which attracted potential purchasers.
Interestingly, in the post-COVID survey final results, home which will be prepared inside 1 year is the second most preferred option for 27% home seekers.
Affordable properties (< Rs 45 lakh) emerged as the most preferred in the post-COVID survey, accounting for more than 40% share as against 31% in the pre-COVID survey – an boost of 9%. Over 38% of this cost-effective housing demand in the post-COVID survey came in from Delhi-NCR, followed by 21% from Kolkata.
Rs 90-lakh spending budget variety home took a backseat this time and stood at the second spot. Altogether, 67% of this demand came in from Bengaluru, Pune and Chennai. Availability of less expensive dwelling loans was the important aspect for majority of these respondents. Further, about 20% home seekers preferred Rs 90 lakh – Rs 1.5-cr spending budget properties – rising by 2% against the pre-COVID survey.
Demand for luxury properties (> Rs 1.5 cr) also improved – from 9% in the pre-COVID survey to 11% post-COVID. Nearly 58% of this demand is from Mumbai (MMR), followed by Bengaluru and Hyderabad.