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Will The Upcoming Festive Season Bring Cheer To The Real Estate Market?

By Rishabh Chamoli | 2022-09-20

Will The Upcoming Festive Season Bring Cheer To The Real Estate Market?

Indians like to time their big purchases such as a home around the festive season. Here is a look at the factors that are likely to push the real estate industrys growth forward.

The festive season is considered very auspicious and therefore whether it is about starting a new business, purchasing gold or car or investing in real estate , Indians always seek the perfect occasion before taking the plunge. Hence, it would not be wrong to say that starting from Dussehra upto Diwali, industry experts believe that the real estate sector is expected to see a big boost in numbers.

We believe that the upcoming festive season is definitely going to spell good news for the industry as the consumer sentiment is good and it is also pertinent to note that recent rate hikes and the consequent increase in home loan rates have so far not had any discernible negative impact on the burgeoning demand for homes. Overall, the positive buyer sentiment coupled with the renewed interest of investors in residential real estate is expected to cushion some of the adverse impacts of the rate hike, price increase by the developers and overall inflation, opines Vikas Wadhawan, group CFO for leading real estate marketplace and analytics platforms.

So, lets find out why the upcoming festive season will bring good tidings for the real estate industry.

Auspicious beginnings
Cherag Ramakrishnan, founder and managing director of a real estate company shares, Many Indians believe that the festive season has positive vibes and thus buying during this phase brings in good fortune, health, positivity, and happiness to buyers.

Homebuyers also had plenty of time in the last two years to plan and decide what they want in their new home and thus have a clearer idea of their wants and needs. Dhaval Ajmera, director of a real estate company adds, This festive season, we expect to see a paradigm shift in the Indian homebuyers psyche, who is more cautious, but smarter than before, and plans strategically before investing.

Exciting offers
The developers know that this is the right time to attract homebuyers and they are trying to dish out some interesting offers to turn the fence sitters into homebuyers. For real estate organisations, this is the most strategic time to drive up buyer sentiments through flexible payment plans and other such offers. Some of the offers are no EMIs, no GST, zero stamp duty, and upfront discounts. With these offers, the developers emphasise liquidating the unsold inventory considering the solid intent of the property buyers during the upcoming festive season. Reputed Grade A developers are attracting customers with freebies as well, shares Samyak Jain, director of a real estate group.

Financial timing
Another important thing that often goes unnoticed is the timing of bonuses and appraisals of the working people. The appraisal cycle of most corporates often coincides with the festive season. Apart from this, a major chunk of these people also gets some extra amount as a festive bonus. This cushions the financial blow while making a big purchase. These folks constitute a majority of the population and they mostly get their mid term hikes and bonuses during the festival season, thus allowing them to invest in assets, shares Jain.

Feel good factor
The Covid 19 pandemic situation is better than how it was a year ago. All the states in India are functioning without restrictions now as compared to the peak of the pandemic. This has also resulted in people going for big buys as they had to hold back in the pandemic on such a big investment. Anil V Pillai, director, Terragni Consulting mentions, The residual sentiment of having held back investments over these last two years, now finds a release. This could be in the form of both, impulsive purchases and long term commitments of real estate.

New launches
The festive season is auspicious for developers as well, and thus they too launch several new projects around this time, adds Cyrus Mody, managing partner of a luxury home developer group in Mumbai.

Ajmera shares, With the forecast of new launches, we anticipate an increase in sales during the upcoming festive season despite the increase in interest rates. Therefore, it is expected that in the next couple of months, Indian real estate will continue to be on the rise and people will want to upgrade and buy better and bigger homes.