Although expectations are muted this year, still some increase in sales are expected because of various factors, including the availability of affordable ready-to-move-in homes as well as cheaper home loans.
The festive season is finally here and real estate developers, like always, are betting big on it for revival of their fortunes. More because this season has traditionally been an active period for real estate, which used to record 20% to 30% increase in sales during this period. Although expectations are muted this year, still some increase in sales are expected because of various factors, including the availability of affordable ready-to-move-in homes as well as cheaper home loans.
Data available with PropTiger.com show that home sales during the festive season invariably increase for a variety of reasons. In the October-December quarter of FY19, for instance, home sales increased by 30%.
“While sales volumes decreased in the quarters that followed, they are expected to see an upward movement during this festive season. While the liquidity crunch and a ban on subvention schemes might keep developers away from launching mega festive discount offers that typically are a big attraction for buyers during the festive season, the reduction in interest rates and easy availability of ready-to-move-in affordable homes are likely to be the big drivers of demand during the festive season this year,” says Dhruv Agarwala, Group CEO, PropTiger.com/ Housing.com/ Makaan.com.
What is more, with the repo rate at a 9-year low, banks have substantially reduced home loan interest rates to a record low level. Data available with PropTiger.com show that over 4 lakh ready-to-move-in housing units lying unsold in nine major property markets are priced within the Rs 45 lakh bracket. Investing in these units would allow additional savings in the form of an increased tax deduction limit of Rs 1.50 lakh on interest paid on a home loan as announced in the Budget in July. Thus, the current festive season is believed to be an interesting period to take advantage of these factors as well as the potential deals that are available from developers.
Commeting on the same, Dhiraj Jain, Director, Mahagun Group, says, “Every year real estate waits for the festival season as many people like to buy homes on such auspicious occasions. Festivals are the real game changers and add additional recall value to the property being bought. The idea of investment is good during the festive season as you also get good offers that help you save some money.”
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Amit Raheja, CMD, Wealth Clinic, says, “People certainly come out in large numbers to hunt for property during the festive season and during this festival season too we were expecting an increase in inquiries and conversion in sales. People should go for the quality of a project and it would be great if this quality comes with additional offers that can help you save you some money.”
However, your home buying decision should not be guided by the freebies and offers alone.
“Every festive season is a good opportunity to make real estate investments and people normally wait for generous offers which do come by from most developers. This festive season is not different as buyers now have good inventory options to choose from in almost all categories. However, I would like to stress here that while taking benefit of the offers is great, but one should not only concentrate on the offers but also on the quality of the project and their own requirements as well,” says Vaibhav Jain, CMD, Rise Group.
For, sometimes buyers may get distracted by the available offers to choose from. Therefore, it’s important to make a wish list of desires and then make an informed decision. “Just a few thousand rupees or a lure of additional facility should not be the only criteria for finalising the deal of a home where a person has to spend many years of his/her life,” adds Jain.