Key Takeaways & The Way Forward For Indian Real Estate Post Covid-19

The current coronavirus crisis has made a huge impact on real estate in India. However, there are always learnings that can be made in such situations, which can help to pave way for the future.

Recently, ANAROCK, a property consultancy services company, conducted a Consumer Sentiment Survey to gauge homebuyers’ preferences during the pandemic. Their objective was to understand the thoughts, needs and expectations of the homebuyers, which could help them figure out significant real estate trends that are emerging. Here are some of their key learnings:

1. Millennials are now giving priority to owning a home. The research showed that out of those who voted real estate as the best asset class for investment, around 55% belonged to the age bracket of 25-35 years. Since the stock markets are plummeting in these times, physical assets are seemingly providing a higher sense of security to this class of buyers.

2. Bengaluru, Hyderabad and Mumbai Metropolitan Region witnessed maximum bookings.

3. Builders who were using online sales had the edge over others and closed property bookings even during the lockdown

4. About 92% of all participants who had shown no interest in buying a property had now changed their opinion. They were now interested in buying a property as this physical asset provides a sense of security. Additionally, they were also encouraged by the historically low home loan interest rates (between 7.15% to 7.8%), which was a result of RBI slashing the repo rate.

5. Around 62% of the people surveyed were willing to pay premium prices to buy from reputed developers. The reason behind this was their inclination towards risk-free investment. Interestingly, this share has gone up by 10% points from the previous survey by ANAROCK, which was conducted prior to the lockdown.

6. Around 34% gave preference to ready-to-move-in homes over under-construction ones. The uncertainty over the recommencement of construction activities and worries about possession delay may have been the reason behind this.

As you can see from the findings of the survey, the future of real estate in India looks hopeful.

It only makes for a wise decision to invest in a property or buy a home now, when the interest rates and property prices are low as well as many offers are available.

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