6 million sq ft of absorption recorded in Q1 May 2020
Also read: COVID 19: Impact on Real Estate Sector
Also read: Real challenges post COVID-19
A recent consumer sentiment report by Magicbricks – COVID-19 Property Buyer Sentiment Survey – reveals that one out of three homebuyers want to drop or keep on hold their property purchase decision. However, a large majority of 67 per cent are still planning to go ahead with their investment, although with a reduced budget.
The consumer sentiment survey reflects that 67 per cent of the respondents still want to invest in a property albeit with some delay, highlighting the reinforced significance of home ownership during any catastrophe like a pandemic or a national lockdown. It also revealed that 73 per cent of home buyers are likely to decrease their budget.
Reflecting the overall consumer sentiment, Magicbricks’ COVID-19 Property Buyer Sentiment Survey also stated that during the pre-COVID-19 period, about 56 per cent of the respondents had either shortlisted or were actively looking to buy property in less than six months. However, the outbreak has led to most buyers stretching their timelines by a few more months. Interestingly, it has been observed that the Gen Z (people born in the 90s) are the first ones who moved out of the property market, with 50 per cent either holding or dropping their plans to invest in a property. On the other hand, people in the age group of 25-45 years seemed inclined towards buying properties with a reduced budget. Also, on an average, 52 per cent of buyers are looking to postpone their buying plans, these buyers being those who had either shortlisted a property or were actively looking or exploring.
Commenting on the report, Sudhir Pai, CEO, Magicbricks, said: “The real estate industry was already suffering from liquidity crisis and construction 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 per cent of homebuyers across Tier-1 cities. This in turn has also delayed the home buying process by six to nine months.”
Across cities, Pune and Bengaluru witnessed the least decline in buying sentiment due to the uncertainties around the outbreak of COVID-19 among Tier-1 cities. Even in the post COVID-19 scenario as well, the buying intent in these cities is somewhat less affected as per the Magicbricks research. National Capital Region (NCR) and Mumbai Metropolitan Region (MMR), already had sluggish market sentiments before the lockdown and comparatively lower consumer buying intent. The survey indicated that both these markets are likely to be slightly less affected by the lockdown when compared to cities such as Ahmedabad and Kolkata.
The Magicbricks’ Property Buyer Sentiment Survey (during COVID-19 crisis) is designed to understand buyer’s updated outlook of the real estate market during the crisis, the current deciding factors for purchasing property and the new property preferences and consumption patterns. These factors are expected to lead to the emergence of significant trends in the Indian real estate industry.