Majority of potential homebuyers want discounts, flexi payment plan to close deal: Survey

Over 50 per cent of potential homebuyers feel that prices will rise over the next six months on higher input costs and 73 per cent of respondents want flexible payment plans and discounts to close transactions, according to a survey by Housing.com and realtors’ body Naredco. They have surveyed more than 3,000 people to gauge consumer sentiments for the first half of the 2022 calendar year, Housing.com said in a statement.

In the Residential Realty Consumer Sentiment Outlook (January-June 2022) report, Housing.com and Naredco highlighted that 47 per cent of the consumers have a preference to invest in real estate, the highest compared to other asset classes like stocks, gold, and fixed deposits. In the survey for the second half of 2020, only 35 per cent of respondents showed interest in buying real estate.

“The COVID pandemic has reinforced the need for owning a house for every individual. People want bigger and better homes. Our data showed that housing sales rose 13 per cent in 2021 with a revival in demand. We strongly believe that sales will cross pre-COVID levels this year,” said Dhruv Agarwala, Group CEO of Housing.com, Makaan.com and PropTiger.com.

The three portals are owned by REA India, part of REA Group Ltd of Australia. Naredco President Rajan Bandelkar said: “It is encouraging for us that consumers are optimistic about the growth potential of the Indian economy and their own income. Nearly 50 per cent of people surveyed prefer to buy real estate. This means that demand will continue to remain strong”.

As per the survey findings, more than half (51 per cent) of the potential homebuyers feel that residential prices will rise in the coming six months. The survey revealed that 73 per cent of respondents were of the view that flexible payment plans and discounts would bring them closer to making the purchase decision.

Housing.com and Naredco suggested that the government should hike tax rebates on housing loans’ interest rates, reduce Goods and Services Tax (GST) on construction materials, expand credit availability to small developers, and cut stamp duty to boost housing demand.

In a healthy sign for proptech companies, 40 per cent of respondents are willing to buy a home completely online or close the deal in just one site visit. The pace of adoption of technology in the overall real estate sector has gained momentum since the outbreak of the pandemic.The survey also indicated that 57 per cent of the potential homebuyers would prefer to buy a ready-to-move-in (RTMI) property.

“This shows that prospective buyers are still cautious to book flats in under-construction flats because of a trust deficit,” Agarwala said. He, however, said the situation might change with developers increasingly focusing on ensuring that they meet their committed deadlines. Homebuyers across top-eight cities are looking for a property with access and proximity to social infrastructure, such as educational institutes, healthcare facilities and recreational/open spaces. The majority of respondents want such facilities within 1—1.5 km from their homes.

The survey found that 79 per cent of respondents feel that the economy would continue to stay on its growth trajectory in the coming six months.
Only 21 per cent of respondents suggested that the economy would get worse compared to 41 per cent during the first wave of the pandemic. 63 per cent of homebuyers are confident about their income for the coming six months.National Real Estate Development Council (NAREDCO) was established as an autonomous self-regulatory body in 1998 under the aegis of the Ministry of Housing and Urban Affairs.

REA India has a national presence with 17 offices across India with its corporate office located in Gurugram, Haryana. Founded in 2012 and acquired by REA India in 2017, Housing.com is one of the leading full-stack proptech platforms for homeowners/home seekers, landlords, developers and real estate brokers. It offers listings for new homes, resale homes, rentals, plots, commercial spaces and co-living spaces in India.