Almost half of investors prefer real estate to other asset classes such as stocks, gold, and fixed deposits, said a joint survey by Housing.com and National Real Estate Development Council (Naredco) of more than 3,000 people to gauge consumer sentiments for the first half of 2022.
Moreover, more than half feel residential prices will rise in six months on the back of rising input costs. And as many as 73 per cent of respondents were of the view that flexible payment plans and discounts would bring them closer to a home purchase.
"The pandemic has reinforced the need for owning a house for every individual. People want bigger and better homes. Our data showed that housing sales rose 13 per cent in 2021 with revival in demand. We strongly believe that sales will cross pre-COVID levels this year," said Dhruv Agarwala, group CEO of Housing.com, Makaan.com and PropTiger.com.
Commenting on the survey, Rajan Bandelkar, president of Naredco, said: "It is encouraging for us that consumers are optimistic about the growth potential of the Indian economy and their own income. Nearly 50 per cent of people surveyed prefer to buy real estate. This means that demand will continue to remain strong."
Housing.com and Naredco suggested that the government should hike tax rebate on housing loans’ interest rate, reduce Goods and Services Tax (GST) on construction materials, expand credit availability to small developers, and cut stamp duty to boost housing demand.
In a healthy sign for proptech companies, 40 per cent of respondents are willing to buy a home completely online or close the deal in just one site visit. Tech adoption in real estate has gained momentum since the outbreak of the pandemic.
The survey also indicated that 57 per cent of homebuyers would prefer a ready-to-move-in property.
"This shows that prospective buyers are still cautious to book under-construction flats because of trust deficit," Agarwala said, adding that the situation is likely to change as developers increasingly focus on deadlines.
Another pandemic trend is that homebuyers across top eight cities are looking for a property with access and proximity to social infrastructure such as educational institutes, healthcare facilities, and recreational/open spaces.
The survey found that 79 percent of respondents feel that the economy would continue its growth trajectory in the coming six months.
Only 21 percent suggested that the economy would get worse compared to 41 per cent during the first wave of the pandemic. "63 percent of homebuyers are confident about their income for the coming six months," the report added.
