Business Bureau ;
Real estate has emerged as the most preferred asset class for investment but nearly 50 per cent of potential homebuyers, currently living on rents, feel that prices are still high and unaffordable for them to purchase flats, according to a survey by Housing.Com and Naredco. Housing.Com, which is part of Elara Technologies that also owns PropTiger and Makaan.Com, said the survey was conducted in April-May across eight cities through a random sampling technique.
The insights presented in the survey entirely represent the view of more than 3,000 potential homebuyers. According to the findings of the survey, real estate remains the preferred asset class for investment (35 per cent), followed by gold (28 per cent), fixed deposits (22 per cent) and stocks (16 per cent). As many as 59 per cent of respondents think that the overall economic scenario will either remain at the current levels or may slightly see some revival in coming six months. About 53 per cent are confident of income for the coming six months while the same percentage of respondents said that they have ‘only postponed’ their search for a home for the coming six months.
“Price-points of residential realty have remained muted for the past few years, but are still a key deterrent, with the perception of being still unaffordable. This was the response from nearly half of the potential homebuyers surveyed, who are currently staying in rented accommodation,” the statement said. The survey report “Concerned yet positive – The Indian Real Estate Consumer (April – May 2020)” reflects that prospective home buyers are “cautious but optimistic”, said Dhruv Agarwala, the group CEO of Housing.Com, PropTiger and Makaan.Com in a video press conference. “Survey shows that potential homebuyers who were searching for flats have pressed a pause button for the time being because of liquidity concerns and uncertainty over the COVID pandemic. But, a majority of them will gradually start returning to the market in the coming months,” he said.
“With the significant correction in stock markets and the continued volatility, it is not surprising that real estate has become the top choice as an investment asset class,” he said. Naredco President Niranjan Hiranandani said, “The pandemic has not only shaken up the economy, it has further added to the distresses of real estate, which was already reeling under pressure post the Tsunamis of economic reforms, including demonetisation, GST and RERA. This pandemic has come as a rude setback for our industry and the allied sectors.