The current blockade of the coronavirus crisis has had a major impact not only on the global economy, but on the vast majority of sectors around the world, including real estate. However, every crisis has opportunities, and Covid-19 looks the same.
According to the ANAROCK Consumer Sentiment Survey, this is an attempt to measure home buyer preferences during a pandemic, which always leads to the emergence of a significant trend in the Indian real estate industry-including the Indian real estate sector. All industries are currently diligent and are committed to innovating and strategizing their business. Among the main notable trends, the housing sector is all on a different growth trajectory, with “homeownership” gaining a great preference among the new millennials and not keeping demand for affordable housing low. Ready to embark on.
In addition, the majority of respondents nowadays mostly favor risk-free investments. Also, online home sales have begun to gain momentum, and large, proven developers will be the main beneficiaries of this change.
Here we look at six major consumer trends in the Indian real estate sector during the Covid-19 Era.
1. Homeownership is a new priority for millennials
Covid-19 changed the mindset of millennials a bit. At least 55% of all participants who voted for real estate as the best asset class for investment were in the 25-35 age group, compared to 42% in the previous survey. Interestingly, 68% of all these millennials are end-users. Undoubtedly, physical assets provide the greatest relief, especially in emergencies such as Covid-19, or when the stock market plunges to new lows and financial markets witness turmoil.
2. Bangalore, Hyderabad, MMR saw the biggest bookings
At least 82% of buyers who booked just before or during the Covid-19 lockdown period claim to have booked their home in these three cities. Developers focused on digital sales tools are at the forefront of crises such as Covid-19, as they were able to finish selling despite the lockdown.
3. Reassurance related to physical assets and declining mortgage rates are the main factors that determine change
Of all the participants who were previously unwilling to buy assets, but now changed their decisions during the lockdown period, 92% said that two main reasons for this sudden change were physical assets: The reassurance provided to us by urgency and declining mortgage rates. This is currently the lowest level ever, ranging from 7.15% to 7.8%.
4. Covid-19 does not reduce the demand for affordable housing
Affordable segments were widely expected to be most affected by Covid-19 in 2020, as target audiences are more concerned about limited income and fear of unemployment. But it's not. As with the previous survey, over 36% of respondents prefer properties priced within a budget of less than Rs 45. Also, in the current Covid-19 situation, it is possible that many buyers, who previously had higher budgets, actually reduced it. Many don't want to trap large amounts of money during such uncertain times. Instead, they bought a more functional home based solely on their current needs.
5. 62% of buyers pay a premium and prefer to choose the developer with the lowest execution risk
The majority of respondents currently favour primarily risk-free investments. Despite the relatively high prices of real estate, developers with the lowest risk of execution are more demanding than ever. In the previous survey, 52% preferred higher-priced properties from brand developers to sell at lower prices, but favoured smaller properties with higher execution risk.
6. Over 34% of investors have come to prefer RTM housing
The key trend seen during Covid-19 is that, unlike before, many respondents seeking real estate from an investment perspective prefer moveable (RTM) housing. 34% of people prefer a home that is ready over a home that is under construction. This is probably due to the complete suspension of construction activity across the country, which inevitably leads to project delays of several months. In contrast, the trends in the previous survey showed that only 12% of investors preferred prefabricated housing then.
Hyderabad Government is taking all initiatives to boost residential real estate and has ensured builders community to provide all sorts of supports from regulating the price of construction materials to allowing construction activity to finished their stalled projects. So, it is speculated that in 6-month residential real estate would pick up and there would be lot of opportunity for buyers as many builders will come up with lucrative offers.
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