Homebuyers are the king when it comes to real estate, a recently released report has many facts showing COVID-19 Sentiment on real estate industry.
By Varun Singh
Homebuyers are back in the market, a recently released report has brought out to the fore the sentiments of the homebuyers in the real estate industry.
Amidst deals, discounts and cheaper home loans, nearly 62% of respondents in the CII-ANAROCK COVID-19 Sentiment Survey consider it expedient to buy homes right away.
The report further stated that, 24% respondents have already booked properties (81% of this segment were previously unsure of buying) and 38% opted for newly-launched projects.
The report was unveiled on Wednesday by CII and ANAROCK at the 3rd CII Real Estate Confluence themed ‘Indian Real Estate Vision 2025’.
Below is the list of how the hombuyers are behaving in the real estate market right now.
Preferences of Buyers Who Already Booked!
COVID-19 has significantly impacted the home-buying decisions. In a major positive trend, a sizeable 59% respondents changed their decisions due to the pandemic.
They were previously not sure of buying a home (probably preferred to rent) but pandemic-like exigencies altered their preferences.
92% of the respondents will continue with their booking despite the changing economic situation due to COVID-19.
81% Were previously unsure of buying but bought post lockdown relaxations.
72% Preferred budget range (< ₹90 Lakh), 68% are end-users. 38% Opted for newly-launched property.
Preferred Construction Stage of Property!
Ready-to-move-in property continues to be the most preferred (29% respondents) among the prospective buyers.
However, in comparison to both pre-COVID and lockdown period surveys,
we saw a dip in its preference – at least 17% since the lockdown period and 6% since the pre-COVID levels.
Ideal Budget-Range?
Affordable properties (<₹45 Lakh) emerged as the most preferred in post COVID survey accounting for over 40% share as against 31% in the pre-COVID survey – an increase of 9%.
BHK-Typology in Demand?
2BHKs continue to be the hot favourite for prospective homebuyers in both pre and post COVID surveys.
However, there was a marginal decline with 49% property seekers now
preferring 2BHKs as against 52% pre-COVID.
Interestingly, in the post COVID survey, the popularity of bigger configurations (3BHK & 4BHK) also increased as compared to the pre-COVID survey.
For 3BHKs, demand increased from 31% pre-COVID to 38% post COVID. For 4BHKs, the share increased from 2% pre-COVID to 3% post COVID.
Preferred Location & Factors Influencing it!
The previous ‘gold standard’ of Indian housing the walk-to-work or short drive to work, by definition only in and around central corporate workplace hubs – seems to have shed much of its popularity for many prospective homebuyers today.
Just 28% are now looking to live within city limits – in proximity to office.
The work-from-home concept has become the next fulcrum for homebuying decisions.
Resultantly, 43% respondents are looking to shift to the peripheral areas
for bigger homes and a better lifestyle at more affordable prices.
“The survey underscores the massive impact that the coronavirus pandemic has had on home-buying decisions. The work-from-home and online education culture has resulted in buyers seeking larger homes, even if it entails moving to peripheral areas. Surprisingly, new launches are gaining traction post-COVID. 26% of the survey’s respondents will opt for homes in newly-launched projects, which is an increase of 4% over the pre-COVID period.”
Anuj Puri, Chairman – CII Real Estate Confluence 2021 & Chairman – ANAROCK Property Consultants.
Developer Option –Branded vs Non-Branded?
61% respondents in the current survey prefer to buy a property from branded developers (even at an extra cost) as against non-branded ones (39%).
In the pre-COVID survey, the ratio of branded vs non-branded was 52:48.
Factors Influencing Property Buying!
Attractive deals & offers by developers is the prime factor influencing
prospective buyers today.
At least 36% home seekers would look to purchase a property when offered a good deal.
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