Real estate, like many other sectors, has been dealt a major shock by COVID-19. The sector and especially, the residential market, was already grappling with policy changes, regulatory reforms, a liquidity crisis and changing consumer preferences. Amidst challenging conditions, the residential market was on a recovery path and had shown resilience. The pandemic has disrupted the market and the sector is bound to face several challenges in the short term.
Prospective homebuyers are now re-evaluating their purchase decisions basis need, budget and timing. At the same time, the residential market is providing several lucrative opportunities for those with strong intent. In this backdrop, JLL’s Homebuyer Preference Survey has sought responses to understand the preferences of prospective homebuyers and their outlook on purchasing a residential property amidst the pandemic.
More than 50% of the prospective homebuyers surveyed are likely to buy their dream house within the next six months. The southern markets will lead this recovery cycle with other markets on the heels as cities gradually return to ‘business as usual’ over the next few months.
The green shoots of recovery in the market will be in tandem with overall economic growth and improvement in the current fragile employment scenario. While economic growth is expected to be under pressure in the short term, we see positive synergies for homebuyers. It is a great time to buy a house - rationalised pricing, lowest home loan interest rates, extension of credit linked subsidy scheme and developers doling out lucrative schemes are all in favour of homebuyers.