Tax sops, flexible payment plan key influencing factor for prospective homebuyers: Survey

New Delhi: Tax incentives from central as well as state governments and flexible payment plans from builders will motivate prospective homebuyers to buy residential properties, according to a survey by Housing.com and Naredco.

Proptech firm Housing.com and realtors' body Naredco on Thursday released their latest survey report titled "Residential Realty Consumer Sentiment Outlook H2 2023 - Trends and Insights". The online survey engaged over a thousand potential homebuyers.

Tax incentives, such as stamp duty and GST waivers, along with flexible payment plans, are identified as the primary motivators for homebuying. They are also inclined towards additional perks offered by developers, the survey found.

According to the survey, 48 per cent of respondents favour real estate investment, significantly outperforming other asset classes such as stocks, fixed deposits and gold. The data indicates that 18 per cent prefer the stock market, 19 per cent opt for fixed deposits, and 15 per cent choose gold.

The demand for ready-to-move-in residential properties outstrips that for under-construction projects.

Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com & Makaan.com, said, "Throughout history, real estate has been a cornerstone of investment. The COVID-19 pandemic has enhanced its relevance, making it the preferred choice for many. Factors such as the emphasis on homeownership, the rise of hybrid work models, and the importance of safety and security have elevated the real estate sector to new heights."

Rajan Bandelkar, President of Naredco, said that the increasing consumer confidence surpasses the lows experienced during the pandemic's peak.

Though income outlooks have slightly declined, real estate continues to be the asset class of choice for 48 per cent of respondents, he added.

"Due to escalating property prices and interest rates, incentives like stamp duty and GST waivers are key influencers for home purchases in the near future. These incentives aim to make homeownership more appealing and accessible," Bandelkar said.

The survey highlights the value of personalised support following property shortlisting, which is critical for closing deals and enhancing the overall homebuying experience.