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.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
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.