The majority of prospective homebuyers expect house prices to climb over the next six months as a result of higher input costs, and they are seeking for flexible payment options and also discounts when making decisions about their ideal homes.
Consumer attitudes across all sectors have been buoyed by the strengthening of business activity following the pandemic's second wave and the minimal impact of the third wave. Consumer confidence has risen across the board, including in residential real estate markets. While residential demand in 2021 will be lower than before COVID, it will be higher than the bottomed-out levels of the previous year.
According to a joint survey conducted by Housing.com and NAREDCO, the value of owning a home has never been more important than now, as safety and security have taken centre stage. Despite the pandemic, respondents identified real estate as their favoured asset type. While making a purchase, homebuyers, mostly end-users, are now looking for both habitability and affordability.
According to a survey, more than half of potential homebuyers believe prices will rise in the next six months due to higher input costs, and 73% prefer flexible payment options and discounts to finalise purchases.
Housing.com and Naredco reported in their Residential Realty Consumer Sentiment Outlook (January-June 2022) research that 47 percent of consumers prefer to invest in a real estate above other asset classes such as stocks, gold, and fixed deposits.
Only 21% of those polled predicted the economy would deteriorate, compared to 41% during the first wave of the pandemic. "In the next six months, 63% of homebuyers are confident in their income," according to the research.
In the survey for the second half of 2020, only 35 per cent of respondents showed interest in buying real estate.
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.
The survey also indicated that 57 per cent of the potential homebuyers would prefer to buy a ready-to-move-in (RTMI) property.
Homebuyers in the top-eight cities want a property that is close to social infrastructure including educational institutions, healthcare facilities, and recreational/open spaces. The vast majority of responders prefer such services to be within 1—1.5 kilometres of their residences.
Housing.com and Naredco suggested that the government should hike tax rebates on housing loans’ interest rates, reduce Goods and Services Tax (GST) on construction materials, expand credit availability to small developers, and cut stamp duty to boost housing demand.