Housing inquiry demonstrating marked improvement from pre-COVID trends
The impact of the coronavirus outbreak on the real estate sector in India is quite prominent. With people facing an economic crisis as a result of job losses, there has been a sharp decline in demand and sales of properties. Real estate developers are in a difficult spot as a drop in sales has blocked cash flow. However, it can be noted that the number of property inquiries has started to increase, indicating a recovery phase. Currently, the number of inquiries in the top cities is around 50% on average in Aug-Sep.
The number of site visits has dropped significantly, as most people are staying at home for safety. However, the rate of site-visit-to-closure conversions has improved. Right now, only serious buyers are taking the risk of visiting the project sites.
Many other notable changes have also occurred in the real estate market in all major cities UP. More and more buyers are opting for larger homes, such as 3 BHK and 4 BHK. Earlier the demand for small houses was high. This indicates an increase in demand for properties among end-users as many families who used to live in rented homes are now starting to purchase their own residences.
Demand for homes in sophisticated residential complexes with various amenities appears to be prominent. With people forced to stay indoors due to the epidemic, more and more buyers are inclined towards residences with leisure and fitness facilities such that they often do not even have to venture outside. The demand for affordable homes is also quite high as the purchase of most property buyers has fallen due to the epidemic.