More Millennials Prefer Real Estate As Asset, Survey Reveals How Outlook Over Property Changed After Covid-19

The online survey was conducted in January 2021 and nearly 3,900 people participated in it to give deeper insights into the situation of the Indian property market after Coronavirus pandemic.

New Delhi: Because of deals, discounts and cheaper home loans being offered, the popularity of real estate as an investment asset class in India seems to have increased as a lot of Indians think it is the right time to buy a house. 

According to a survey conducted by ANAROCK Property Consultants and Confederation of Indian Industry (CII), out of the people favouring real estate as an asset class, a lot of them are millennials aged 25-35 years.

The online survey was conducted in January 2021 and nearly 3,900 people participated in it to give deeper insights into the situation of the Indian property market after Coronavirus pandemic.

According to the survey, nearly 62 percent of respondents consider it to be an ideal time to buy a home. Around 24 percent of respondents stated that they have already booked properties while 38 percent of people have opted for newly-launched projects.

About 57 percent of respondents expressed a preference for property over fixed deposits, the stock market, and gold.

Among those favouring real estate as an asset class are 48 percent are millennials aged 25-35 years. This is a significant rise as, before the Covid-19 pandemic, they were just 17 percent. 

 "Homeownership has gained top priority even for the millennials who previously shied away from it," Anuj Puri, chairman, ANAROCK Property Consultants said.

The pandemic situation seems to have also made people want to live in peripheral areas as at least 43 percent of respondents stated that they now prefer living in peripheral areas while just 28 percent favour homes in the city limits (in proximity to offices).

"There was a decrease in the preference for ready-to-move-in homes – a reduction of at least 17 percent since the lockdowns and 6 percent since the pre-Covid levels. One major factor for this could be that post-Covid, new supply was largely by branded developers," said Anuj Puri, chairman, ANAROCK Property Consultants.

"61% of respondents in the current survey prefer to buy a property from branded developers (even at an extra cost) as against non-branded ones (39%)," the survey reports.

Ready-to-move-in property is still the most preferred (29% respondents) among prospective buyers. "However, in comparison to both pre-Covid and lockdown period surveys, we saw a dip in its preference – at least 17% since the lockdown period and 6% since the preCovid levels," it said.

In terms of consumer preferences, demand for bigger homes across all BHK configurations has risen. 2BHKs continue to be the most favourite but buyers are now also on the market for bigger accommodations.

Around 69 percent of the survey's property-favouring respondents now prefer bigger 2BHKs (>600 square feet area) as opposed to just 38 percent in the pre-Covid period.