70% end-users do not plan to purchase a home within 12 months: Report

0
166

“Longer term projects are likely to remain under stress though. About one-fifth of end-users (21%) may return to the market in 6-12 months, as per the sentiment during May. End-users as well as investors are likely to show a higher preference for smart homes and integrated townships in the post-COVID world,” Savills India said in the report.

New Delhi: Residential demand in the country could show signs of a gradual pick-up in 6-12 months once the COVID-19 impact reduces, according to a report by international property consulting firm Savills.

The report says, in 2020, a dent in positive y-o-y movement is inevitable and dent may last through 2020 and early part of 2021
Savills said that policy support is the most crucial part, especially for projects nearing completion.
“Longer term projects are likely to remain under stress though. About one-fifth of end-users (21%) may return to the market in 6-12 months, as per the sentiment during May. End-users as well as investors are likely to show a higher preference for smart homes and integrated townships in the post-COVID world,” Savills India said in the report.
However, as expected, a significant 70% end-users do not plan to purchase a home within 12 months. Similarly, most investors plan to wait-and-watch, with almost 94% planning any decision after 12 months.
The report has analyzed the residential market in the last decade to fully understand the decline, recovery and growth patterns over a long drawn period. Post a slump in 2015 and subsequently, after demonetization at end of 2016, the housing market had begun a very slow revival but kept hitting roadblocks.
The slide hit two troughs (2012 and 2015), but in 2018 and in 2019 did record small growths, despite dampeners like NBFC crisis. However, COVID-19 has brought it to a standstill in 2020, it added.
“The small recoveries of 2018-19 were rooted in structural changes, size-shrinkages and average price-resets. The future will depend greatly on continuing policy support and economic stabilization; and it may take until the second half of 2021 for the markets to return to a steady state,” the report says.

LEAVE A REPLY

Please enter your comment!
Please enter your name here