With widespread layoffs and pay cuts across sectors, concerns regarding job security and wage reduction have emerged as a major deterrent for prospective home buyers from making the deal and buying an apartment of their own, according to a survey by JLL.
The survey on home buyers' preference amid COVID-19 shows that in the current fragile employment scenario and an atmosphere of subdued economic sentiment, survival becomes the priority.
"Homebuyers are either anxious about job security or anticipating salary cuts, which resulted in consumer sentiments taking a massive hit," said the report.
It noted that prospective buyers are also expecting further drop in house prices.
The report says that there is increased pent-up demand in the market, but this will translate into higher sales only when the economy stabilises and prospective buyers feel secure about their jobs.
According to Homebuyer Preference Survey, 91 per cent respondents wanted to buy a home when asked to choose between buying and renting. Additionally, 67 per cent believed that buying a home is a necessity, not a luxury.
Ramesh Nair, CEO and Country Head, India, JLL said: "Recovery in the residential market is imminent and its green shoots would first emerge in the affordable and mid segments across top cities in the country. More than 50 per cent of the prospective homebuyers surveyed are likely to buy their dream house within the next six months."