67% of home buyers plan to continue investing, 73% to cut budget: Magicbricks survey
NEW DELHI: The COVID-19 outbreak has deeply impacted the Indian real and the consumer is currently pessimistic due to the effects of the national blockade. A recent consumer opinion report by the COVID-19 Property Buyer Sentiment Survey reveals that one in three House Buyers want to abandon or retain their property purchase decision. However, a large majority of 67% still plan to go ahead with their investment, albeit on a tight budget.
The consumer sentiment survey reflects that 67% of the respondents still want to invest in a property albeit with some delay, highlighting the reinforced significance of House ownership during any catastrophe like a pandemic or a national lockdown. It also revealed that 73% of House buyers are likely to decrease their budget.
Reflecting overall consumer sentiment, the Magicbricks COVID-19 Property Buyer Opinion Survey also stated that prior to COVID-19, about 56% of respondents had been shortlisted or were actively seeking to purchase properties in less than six months.
However, the outbreak has led most buyers to stretch their deadlines by a few months. Gen Zs (people born in the 90s) have been observed to be the first to move out of the property market, with 50% either having or abandoning their plans to invest in a property.
On the other hand, people in the 25-45 age group seemed inclined to buy properties on a budget. Also, on average, 52% of buyers are looking to postpone their purchase plans, these are those buyers who had selected a property or were actively searching or exploring.
Sudhir Pai, CEO, Magicbricks, said: “The real estate industry was already suffering from liquidity crisis & constructions delays and now the COVID-19 outbreak and the resultant national lockdown has just compounded the problems for the industry. This has temporarily affected the buying intent of more than 80% of House buyers across TIER I cities. This in turn has also delayed the House buying process by 6-9 months.”
In all cities, Pune and Bengaluru witnessed the smallest decrease in purchasing sentiment due to uncertainties surrounding the COVID-19 outbreak among TIER I cities, and after COVID-19 as well, the intention to purchase in These cities are somewhat less affected according to the Magicbricks research.
The National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) already had slow market sentiments before closing and a comparatively lower consumer buying intention. The survey indicated that both markets are likely to be slightly less affected by the blockade compared to cities like Ahmedabad and Kolkata.