The Indian Real Estate Consumer (April - May 2020)' a report jointly released by housing.com and National Real Estate Development Council (NAREDCO), shows that real estate still remains a preferred asset class.
According to the survey, Real estate (35%) is still perceived as the preferred mode of investment, followed by gold (28%); Fixed Deposits (22%), Stocks (16%); and homebuyers are likely to slowly return to the market in the coming six months.
Price-points of residential realty have remained muted for the past few years, but are still a key deterrent, with the perception of being still unaffordable. This was the response from nearly half of the potential homebuyers surveyed, who are currently staying in rented accommodation.
A majority of respondents surveyed (73%) comprise 'first time homebuyers', who 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% of respondents opined that for the next six months, they would prefer a ready-to-move-in property, 21% said they were okay with a property with a delivery timeline of maximum one year.
The survey was conducted in April and May 2020, through a random sampling technique for a fair representation across regions. The insights presented in the survey entirely represent the view of more than 3,000 potential homebuyers.
Mr. Dhruv Agarwala, Group CEO, housing.com, makaan.com and proptiger.com 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."
"This survey has established again that credible developers and ready to move in or nearing completion properties are preferred by prospective customers, who are largely end-users. 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.