Real estate trumps gold, fixed deposit and stocks when Indians think about investing their money. The current economic scenario has not deterred real estate investors who remain confident of their income stability in the next six months, finds a survey. Homebuyers are likely to slowly return to the market in the coming six months..
According to a report jointly released by Housing and National Real Estate Development Council (NAREDCO), the self-regulatory body of the Housing And Urban Affairs Ministry, as many as 35% of respondents preferred to invest in property over gold (28%), fixed deposits (22%), and stocks (16%).
- 59% of respondents think overall economic scenario will either remain at the current levels or may slightly see some revival in coming six months
- 53% of respondents confident of income for the coming six months; rest not too sure
- 53% of the respondents have ‘only postponed’ their search for a home for the coming six months
Although prices in residential realty have remained muted for the last few years, they are still a key deterrent, with the perception of being unaffordable, said those surveyed. The sentiment was echoed by nearly half of the respondents of the survey, who are currently staying in rented accommodation and hope to buy property in future.
As per the survey conducted in April and May 2020, a majority of respondents surveyed (73%) who were ‘first-time homebuyers’, said they 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% said they would prefer a ready-to-move-in property in the next six months and 21% said they were okay with a property with a delivery timeline of maximum one year.
NAREDCO believes that 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 the 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.
Housing.com, which is owned by Singapore-based Elara Technologies that also runs Makaan & PropTiger, conducted an online survey to gauge the mood of the people during the coronavirus pandemic.
Dhruv Agarwala, Group CEO, Housing.com, Makaan & PropTiger, said, “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.”
“With the significant correction in stock markets and the continued volatility, it is not surprising that real estate has become the top choice as an investment asset class,” Agarwala added.
Impact of pandemic on Real Estate
“The pandemic has not only shaken up the economy, it has further added to the distresses of real estate, which was already reeling under pressure post the tsunamis of economic reforms, including demonetization, GST and RERA. 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 Dr Niranjan Hiranandani, Founder-Chairman, Hiranandani Group and CMD, Hiranandani Communities and National President – NAREDCO said, “
As per Rajeev Talwar, CEO, DLF Limited thinks that while the sector recalibrates the approach to stay afloat in these challenging times, the industry is moving towards a more digitally inclined world. The overall behaviour 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 and it is imperative for us to adapt to new technologies that will ease the entire home buying process for this new age home buyer, he added.
Source – https://www.timesnownews.com/