With attractive discounts and offers made available by developers during the festive season, investors are now scouting for attractive deals in the market and contribute to at least 25 percent of buyers who intend to purchase property. As many as 9 percent respondents actually bought a property during the COVID-19 period, a new survey has said.
Every one in three people are looking for high discounts and distress sale opportunities, the Magicbricks Property Buyer's Sentiment Survey 3rd Edition has said.
The portal claimed that it had witnessed a surge in property searches on its platform and they had surpassed the pre-COVID levels by 30 percent to 40 percent.
The survey said that around 25 percent of the respondents are now looking for property as an investment as compared to 13 percent just three months ago. This bodes well for the property market.
The first (April) and the second (July) edition of the sentiment survey had revealed that investors had exited the market amidst uncertainty. Now their return augurs well for the industry, which is now witnessing a renewed interest from all segments of consumers indicated by the increased traffic on the portal, Magicbricks said in a statement.
The latest sentiment survey states that one third of the buyers are now looking to buy on the availability of discounts launched by many developers across the country in a bid to reduce their inventory overhang.
“The onset of the festive season coincides with the time when most of the companies have started to improve their outlook and plans for growth. With uncertainties around the economy and jobs now stabilising, we are witnessing a surge in property searches on our platform and it has surpassed the pre-COVID levels by 30%-40%,” said Sudhir Pai, CEO, Magicbricks.
“This bodes well for the industry and the next six months would be crucial for the real estate industry as we hope this pent-up demand converts into transactions,” he said.
The survey states that ‘Opportunist Searches’ have increased during the pandemic with every 1 in 3 people looking for high discounts and distress sale opportunities.
Besides, the supply side push such as an all-time low interest on home loans and stamp duty waiver in some states also helped to push the fence-sitting buyers to execute the transactions.
The survey said that price dynamics and incentives are likely to tap on the surge in demand.
There is an increased maturity being observed in respondents during the current wave in October, with less than 45 percent of the respondents expecting the prices to decrease further, although discounts can act as a trigger to purchase property. In the first and the second wave (in April and July of the same year), about 3 out of 4 were expecting prices to decrease further, the survey said.
Prices too have bounced back to pre-COVID levels in most cities, the survey added.
The Magicbricks’ Property Buyer Sentiment Survey is designed to understand buyer’s updated outlook of the real estate market during the COVID-19 crisis, the current deciding factors for purchasing property and the new property preferences and consumption patterns.