Buyers Cautious about Investing in Real Estate – The Most Precious Asset
Real Estate is the most preferred asset for investment, but potential home buyers are cautious! Why?
A recent Research revealed that most of the home buyers at this point of time are first-time home buyers who have been looking for a ‘ready to move in house’ for end-use. Maximum of these buyers are aged between 25-45 years.
Real Estate no doubt, is the most highly preferred asset class for investment. Even though the rates are falling down due to the current situation, more than half of the potential home buyers living on rents feel that the prices are too high and unaffordable for them.
Extensive surveys conducted by Indian housing companies state that the number of home buyers has increased to a huge extent and currently there exist more than 3000 potential home buyers, whereas Real Estate is the most sought after asset for investment (35 percent), followed by gold (28 percent), fixed deposits (22 percent) and stocks (16 percent). We also found out that around 59 percent of prospective buyers might remain at the current levels with the numbers going up in a few months.
The Confusion Around Investing In A House:
The pandemic has brought about an economic crisis as well, so just around 53% of the public who are economically secure are keen on purchasing a house for themselves, that too after a period of about 6 months because of the economic tensions prevailing.
The Price Points of residential realty have been under cover for the last few years. The only factor that is making the potential buyers wait are the extreme high prices.
Prospective home buyers are playing safe, but are optimistic about the future, says Dhruv Agarwal, the Chairman of Housing.com, PropTiger and Makaan.com in a video press conference.
A majority of the home buyers who were actively looking for new options have given a break to their searching spree because of liquidity issues and uncertainty during the COVID Pandemic, but they will slowly and steadily return back to the market in some time.
Factors That Attract Prospective Buyers:
What are the factors that attract prospective buyers the most? Ready to move in or nearing completion properties are in maximum demand. The significant correction in stock markets and the continued volatility show that it isn’t surprising that real estate has become the top choice as an investment asset class.
Niranjan Hiranandani, Naredco President stated that the deadly disease has caused a lot of trouble for the real estate sector because of the economic strife, economic reforms, demonetization, GST and RERA. The COVID situation is a rude setback for our industry and the allied sectors.
Hiranandani also says that this is the most ideal time to buy residential properties, as the interest rates on home loans have fallen to a great extent at around 7% along with an interest subvention for the affordable housing category.
Real Estate Sector Embracing A Digital Future:
This is high time for the Real Estate Sector to get geared up for a tech savvy future for better sales and marketing opportunities as well as enhanced automation. It will take some time for the industry to get financial cushioning so that it can again smoothly return back to the process of delivering homes and also get the industry back on its feet.
The overall behavior of consumers and their viewpoint has changed a lot. They now believe in saving more, spending less and investing in smart models. It is obviously less volatile than share markets, hence making it the safest form of investment.
For many customers, this is the right time to invest in a home of their own, whereas for the majority, prices are too high and they prefer to wait for a few more months, so that the right time comes soon.