Is This the Right Time to Buy a Home? The Real State of the Real Estate Sector

Impact of the Pandemic on Real Estate

The real estate sector was one of the major sectors that came to a standstill due to the COVID-19 pandemic and the subsequent lockdowns. Experts argue that the slowdown began as early as 2016.

Financial Crisis Since Demonetization

Since the demonetization initiative, the real estate sector has been facing financial crises. Following that, the introduction of GST and other issues compounded the problems.

Economic Struggles During COVID-19

Currently, many people are struggling to meet basic needs due to the pandemic. Many have lost their jobs, leading to a halt in all non-essential investments. However, the economy is now gradually recovering.

Standstill in Real Estate

As a result, sales of properties, including homes and offices, have come to a complete standstill. Unsold houses remain empty, and many under-construction homes are stalled due to financial issues. Given these challenges, it is not surprising that the real estate sector is struggling.

Is It the Right Time to Buy a Home?

Anarock Property, a real estate advisory firm, conducted an online survey to determine if now is the right time to buy a home in India. Due to various incentives, reduced interest rates, and other favorable factors, 62% of respondents believe that this is indeed the right time to buy a home or invest in real estate.

Impact of COVID-19 on Homebuyers

In this online survey conducted in January 2021, nearly 3,900 people participated. COVID-19 has significantly impacted the decisions of homebuyers. Among the respondents, 24% had already pre-booked their properties, and 59% stated that the pandemic had influenced their decisions.

Market-Stimulating Low Interest Rates

Despite the changing economic situation due to COVID-19, many respondents indicated that they would continue with their pre-bookings. The survey also highlighted that current incentives and low-interest rates are encouraging market activity.

Preferred Budget for Homes

The survey revealed that a majority prefer homes priced up to 45 lakhs, with 40% of respondents favoring this range. Homes priced between 45 to 90 lakhs came in second. Additionally, 67% of the demand was from Bangalore, Pune, and Chennai.

Key Reasons for Interest

The main reason for the interest in buying homes now is the availability of loans at lower interest rates. Post-COVID, this preference has been steadily increasing. The survey found that 57% of participants consider real estate a better investment compared to bank fixed deposits, the stock market, or gold.