As many consumers are inclined to make purchases during this season, developers, marketers and dealers come up with various offers to lure property buyers during the festive season.
The festive season is considered an auspicious occasion for most Indians to make high-ticket purchases. It has been ingrained in the minds of Indians that high-ticket purchases are to be made on auspicious days and this festive season offers multiple festive days such as Dussehra, Dhanteras, and Diwali. To top it all, the sentiments of the people, in general, are high, i.e. they have time to spend with family and focus on making major purchases. As many consumers are inclined to make purchases during this season, developers, marketers and dealers come up with various offers to lure property buyers during the festive season. Even the home finance providers see it as a good opportunity to meet their targets and boost sales.
Some of the key highlights for the inclination to purchase property during the festive season are as below:
New Project Launches
During the festive season, most developers feel that it is an auspicious and opportune time to launch new projects or fresh phases of the existing projects. In anticipation of high-velocity sales, the developers open inventory, which is prime and fresh. This increases the supply and the variety of products on offer. It also gives the buyers more choice and options to make their purchase.
To attract more buyers, which will enable the developers to reach their targeted sales, developers and real estate marketers offer multiple schemes and discounts. The schemes could be financing schemes or freebies. These schemes can offer good value to the customer by way of useful gifts such as a car or white goods. These schemes can also add value by way of finance schemes such as no EMI until possession or similar.
This festive season has come at a time wherein the real estate market has just shown some recovery in terms of sales volumes. The price rise has not really been seen. However, the prices of real estate have stabilised. The existing supply is also limited. This festive season is the opportune time to take double benefit of the sales schemes at a low price and make an informed decision.
Good Investment Option
In a market scenario where equity and debt markets are over-heated, the investments are not yielding any sufficient returns. To make matters worse, the markets are very choppy as well. In addition to this, debt instruments are yielding very minimal returns. In this scenario, the realty sector can offer very good leveraged returns on investment.
The sharp appreciation of the US dollar is an opportunity to cash in on this festive season. The appreciation in the US dollar has made an impact on the affordability and appetite of the NRI investors to invest their income in the Indian realty sector. It’s an opportune time for NRIs to make their investment in a scenario wherein the prices are not escalating in rupee terms and the US dollar valuation is at an all-time high. Also, domestic investors should consider it is an opportunity to cash in on now. With the high value of the US currency, it is expected that there will be input cost pressure on various commodities coupled with high oil prices there will be inflationary pressure as well. Keeping this situation in mind, the input costs for real estate are bound to increase, which will get passed on to the buyer in the near future.
Keeping in mind the above scenarios, it is advisable that the prospective buyer should take advantage of the festive season in terms of pricing and schemes that could yield better returns than the equity or debt markets. Considering the fluctuations in the value of a currency, the prospective buyer may also benefit from making an investment before any inflationary pressures hits the sector.
(By Nitesh Punjabi, Associate Director-Capital Markets and Investment Services at Colliers International India)
(Disclaimer: These are the views of the author. Please consult your advisor before making any investment)