COVID-19 Impact: Home Buyers Likely to Re-evaluate Decisions
The deadly Coronavirus outbreak and ensuing lockdown halted global economic activity significantly as it disrupted industries, trade, and business cycles. Indian real estate sector, which was already struggling to re-emerge from demonetization, structural changes, policy reforms, and the liquidity crisis, is now set to witness another major fallout.
The consumer sentiment is currently negative due to the national lockdown effects. A recent consumer sentiment report by CommonFloor reveals that a whopping 39% of potential home buyers have dropped their property buying decision.
27% of the respondents are going ahead with their plans to buy a home and 55% of them want to do so in the next three months.
Though the Indian real estate market is reeling under the COVID-19 impact, it can be a very positive time for home buyers as they are at an unprecedented advantage to negotiate good deals on ready-to-move-in options. They are also likely to benefit from all-time-low interest rates of 7.15 to 7.8 per cent on home loans. More than half of those responded expect more discounts due to the COVID-19 crisis.
