More people are willing to invest in property amid an improvement in the economic outlook, shows a consumer sentiment survey by PropTiger.com
The number of people willing to invest in the property was much higher in the September-December period of 2020, as compared to April -May 2020, shows by PropTiger.com’s consumer sentiment survey. A key reason behind this increase was an improvement of home buyers’ economic outlook, the survey indicates.
The survey by PropTiger was conducted in the September-December 2020 period, through stratified random sampling, across eight cities, including Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR, MMR, and Pune. The insights represent the view of more than 3,000 potential home buyers interviewed during the cycle.
Real estate is the most-preferred asset class
A majority of the people who took part in the December survey voted for real estate as their preferred asset class. While 43% of respondents opted for real estate, fixed deposits and stocks were the second and third-most popular investment choices among the respondents, claiming 21% and 20% votes in the survey, respectively. Gold-ranked last, with 16% people voting in its favor.
In the May 2020 survey, only 35% of respondents voted for realty as the preferred investment class, while gold remained the second-most preferred asset claiming 28% votes. With 15% votes, stocks were the least preferred choice among consumers in May.
Flexible payment plans and low home loans rates drive demand
When asked about which factors would boost the demand for properties in 2021, the largest number of people voted for flexible payment options and discounts, followed by low home loan interest rates and the developer’s credibility.
While 59% of respondents said flexible payment plans and discounts would be the key demand drivers in 2021, 24% voted in favor of low home loan interest rates. Only 17% of the participants voted in favor of developer credibility.
In the May survey, 24% of respondents had voted for developer credibility as the key demand driver, while 58% voted in favor of flexible payment plans and discounts. Only 18% of the participants had voted in favor of low mortgage rates in May.
Economic outlook improves but income outlook remains cautious
76% of respondents expected the economic scenario to improve in the December 2020 survey. Their outlook towards income, however, continued to remain conscious with one-third of the respondents saying that they were still not confident about their incomes. In May, only 59% of home buyers opined that the economic scenario would either improve or remain stable.
78% of buyers willing to buy property in 2021
The increased affordability of housing units continues to push demand for residential realty. Most banks have brought their interest rates to below the 7% level, after reductions in the repo rate by the RBI and several states have announced stamp duty cuts, in the aftermath of the Coronavirus pandemic.
While 78% of respondents wanted to buy a property in the next year, another 22% of respondents said they had put their property purchase plan on the backburner.
Work-from-home fuels demand bigger homes
As companies continue to extend the deadline on reopening of workplaces, most people have been working from home for over a year now. This phenomenon is pushing more and more people to invest in bigger homes that would offer them the space for a home office.
As a result of this, 47% of the respondents in the survey mentioned plans to buy larger homes, to meet their work-related requirements in December. In May, the percentage of those who planned to buy bigger homes stood at 33%.
In the December survey, 53% of participants said they had made changes in their existing properties, to make room for their changing needs, as work from home (WFH) becomes a mainstay. In May, this number stood at 67%.
Ready-to-move-in units remain a preferred choice among buyers
Project delays have been a key cause for concern among home buyers. In view of the pandemic, which may result in longer delays in project delivery timelines, a majority of people are now opting for ready homes, its comparatively higher ticket size notwithstanding.
In the December survey, 63% of respondents said they would invest in the read-to-move-in (RTMI) segment, while another 27% said they would be willing to buy under-construction properties that would be ready for possession within one to two years.
Source – https://housing.com/news/proptiger-consumer-sentiment-survey/
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