Housing becomes preferred asset class amid corona crisis: Report

NEW DELHI: As the coronavirus crisis hits financial markets and other investment options hard, a survey by Anarock Property Consultants shows that more and more people now want to purchase residential properties.

The survey also indicated that home-ownership is now a compelling priority for the millennials facing uncertain times.

"A majority of participants (48 per cent) in an ANAROCK survey to gauge housing market sentiment in COVID-19 times chose real estate as their preferred investment asset class. Of these, 59 per cent of intending buyers are end-users," it said.

Out of the total voters favouring real estate, 55 per cent are aged between 25-35, and 68 per cent are end-users. In the H2 2019 edition of this survey, only 42 per cent were in this age bracket.

Anuj Puri, Chairman, Anarock Property Consultants, said: "The security of owning a physical asset during a coronavirus-like crisis now combines with a rising aversion to high-risk investments. As a result, the demand for residential real estate has increased."

He noted that millennials are key demand-drivers, their preferences are now dictated by the prevailing uncertainties, stock market volatility and recent-past financial sector incidents.

Many of them now prefer buying homes over renting, Puri said, adding that the general homebuying sentiment is also guided by cheaper home loan interest rates, which currently average between 7.15-7.8 per cent. (IANS)

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