73 per cent prospective home buyers to reduce their budget post-COVID crisis: Report

New Delhi: Around 73 per cent prospective home buyers are likely to lower their budget for purchasing a property in the wake of the coronavirus crisis, according to a Magicbricks survey.

Titled 'COVID-19 Property Buyer Sentiment Survey', the report also said that around 67 per cent of the respondents are still planning to go ahead with their investment plans in terms of buying a house, but may delay their plans.

"The consumer sentiment survey reflects that 67 per cent of the respondents still want to invest in property, albeit with some delay, highlighting the reinforced significance of homeownership during any catastrophe like a pandemic or a national lockdown. It also revealed that 73 per cent of home buyers are likely to decrease their budget."

Reflecting the overall consumer sentiment, the survey found that before COVID-19 pandemic, about 56 per cent respondents had either shortlisted or were actively looking to buy property in less than six months, but the outbreak has led to most buyers stretching their timelines by a few months.

It noted that it has been observed that the 'Gen Z', people born in the 1990s, is among the first ones who moved out of the property market, with 50 per cent either holding or dropping their plans to invest in property.

On the other hand, people in the age group of 25 to 45 seemed inclined towards buying the property with a reduced budget. Also, on an average, 52 per cent of buyers are looking to postpone their buying plans, it said, adding that these are those buyers who had shortlisted property or were actively looking or exploring.

Commenting on the survey, Sudhir Pai, CEO of Magicbricks, said: "The real estate industry was already suffering from liquidity crisis and constructions delays and now the COVID-19 outbreak and the resultant national lockdown has compounded the problems of the industry. This has temporarily affected the buying intent of more than 80 per cent of homebuyers across tier-I cities."

He added that the pandemic has resulted in the delay of the home buying process by six to nine months.