Banking on the upbeat consumer mood during the festive season, top property developers are expecting a growth of 15-20% in sales during the 45-day period.
“We expect strong demand in the next few weeks here. Overall, we foresee a positive outlook for the festive season this year,” said Vikas Oberoi, chairman and managing director of Oberoi Realty.
Oberoi said all their projects are seeing great sales momentum with possessions and handovers at Eternia and Enigma projects in Mulund and upcoming possessions in December at Sky City in Borivali.
Oberoi’s revenue fell by 0.3% to Rs 909.97 crore in Q1FY24 due to lower bookings.
Venkatesh Gopalakrishnan, director, group promoter’s office & CEO at Shapoorji Pallonji Real Estate (SPRE), said, “As we approach the festive season, we are witnessing a surge in inquiries. We anticipate achieving a 10-15% growth in our transaction numbers compared to the previous year.”
Gopalakrishnan said the growth would be primarily driven by the simultaneous launch of two to three new projects in the upcoming months, perfectly aligned with the festive spirit.
He said that according to their analysis and market insights, Bengaluru, Mumbai and Pune are expected to continue with high transaction volumes.
Quoting reports online, he said for April-June, the real estate market saw a 19.7% quarter-on-quarter surge in property demand. Additionally, an average increase of 4.9% quarter-on-quarter is seen in
rental rates pan-India, as per the reports. “This favourable trend encourages many prospective homebuyers to consider real estate investments, as they can potentially earn returns through rental income,” he said.
Malayappan Murali , CMD of Shriram Properties, a Bengaluru-based developer, is also expecting 15-20% growth compared to the last year’s festive season.
“We are expecting a substantial growth this year, building on the success of the previous year and the strong demand in the real estate sector,” Malayappan said.
Shriram Properties posted a 47% growth in sales value to `459 crore in Q1FY24 driven by strong sustenance sales in ongoing projects and two successful launches during the period.
Ramesh Ranganathan, chief executive at K Raheja Corp Homes, also expects similar numbers.
“The demand for residential properties in India has experienced a notable upswing, driven by the expanding urban landscape, escalating household incomes and burgeoning aspirations, and we expect a 15-20% growth compared to last year,” he said.
Ranganathan said while the demand for affordable and mid-range housing remains steadfast, the luxury real estate sector is witnessing a remarkable surge in the introduction of new residential projects, with price tags spanning from `2-3 crore to as high as `15 crore.
No discounts
Many top developers like K Raheja Corp would not be giving any discounts during the festive period due to a robust demand.
“Our target markets encompass Mumbai, Pune, Hyderabad and Bengaluru, where we anticipate a heightened demand,” Ranganathan said. However, given the robust demand, it is unlikely that they would will offer any discounts during the festive quarter, he said.
Some like Oberoi Realty would continue with competive pricing strategies.
“Our projects have been gaining significant momentum, and we’ve positioned ourselves with competitive pricing strategies. We are committed to providing our consumers with a high value for the price they pay,” Oberoi said.
Many like Brigade Enterprises have lined up new launches to tap the demand during the season.
“In the coming quarters, we have planned some new product launches in our key markets. These launches are designed to meet customer expectations and adapt to their evolving preferences,” said Pavitra Shankar, managing director of the company.
Oberoi Realty has lined up projects in Goregaon and Thane near Mumbai in the coming festive season.
Anuj Puri, chairman at Anarock, said, “We do expect a surge in new launches this festive season because many developers have a strong pipeline of projects.”
Puri said many developers went into a wait-and-watch mode during the first half of 2023 owing to global headwinds and layoffs and so on, largely in anticipation that demand may reduce. They would now look to launch these projects as homebuyer demand in Indian residential market remains
undeterred by any of the domestic and global headwinds, he said.
Kamal Khetan, chairman at Sunteck Realty, said, “The residential market is gearing up for new launches this festive season. Improved customer sentiment will lead to sharper growth as the resilience of the real estate market stays true. We are confident to achieve a significant uptick in our sales.”