The festive season is finally here, and every industry has started betting big on it for revival for fortunes, including real estate. For, buyers prefer making big-ticket purchases during the festive period as it is considered auspicious by a majority of people. Sales of all kinds of goods and commodities soar during this time of the year.
Although Q2 was not very good for real estate as the top 7 cities of the country saw housing sales moderate by 15% – from about 99,550 units in Q1 2022 to about 84,930 units in Q2 2022, according to ANAROCK Research data, however, defying odds like the inauspicious ‘shraadh’ period, excessive monsoons, and rising property prices and interest rates, the housing sales momentum continued unthwarted in the next quarter, and as many as 88,230 units were sold across the top 7 cities in Q3 2022 – a 4% quarterly increase and 41% annual rise.
Commenting on this trend, Anuj Puri, Chairman, ANAROCK Group, says, “The momentum of both housing sales and new launches stayed strong in the top 7 cities in Q3 2022 despite major headwinds. The appetite for homeownership has remained undeterred, with maximum sales being driven by the end-users. Interestingly, there has been increased new supply by the leading and listed developers, who also reported robust housing sales. This trend will very likely continue in the upcoming festive quarter as well since homeownership sentiment has increased hugely post the pandemic. To maintain the sales momentum during the ongoing festive season, developers have rolled out lucrative launch offers which are being received well in the market.”
Ashish Narain Agarwal, Founder & CEO, PropertyPistol.com, has a similar view. “We have been observing an upward swing in sales internally benefitting the entire real estate fraternity. I feel the festive season is an encouragement for home buying as usual and despite any situational factors like a rate hike or price rise, this season sets the tone for auspiciousness, prosperity and good luck, which makes home buying a necessary and an important affair. During this time, developers come up with celebratory offers and the market is filled with optimistic sentiments,” he says.
Industry experts believe that this festive season, which has come after two years of the pandemic, will bring a turnaround in the sector. The real estate market is already buoyant with various locations performing well, fresh areas coming up and developers launching new projects.
Why sales rise during festive times?
Buyers prefer purchasing things in the festive season as it is considered auspicious. At times, buyers want to conclude deals on a day or a time window such as ‘Dhanteras’ or ‘Navratras’. Sales of all kinds of commodities soar during this period of the year and over the years, the same has been true for real estate as well.
“This year’s festive season follows a relatively buoyant last 12-14 months in the real estate sector. The festive season would extend that run for the sector as there are varied options for buyers across new launches as well as ready-to-move segments. However, translation of festivity into real estate sales is a function of various subtleties such as the availability of lucrative deals, suitable inventory, buyer sentiments, investment lucrativeness of real estate asset class, to name a few,” informs Ashutosh Kashyap, Director, Advisory Services, Colliers India.
The typical festive offers comprise of schemes such as freebies in terms of tangible additions such as internal apartments furnishings (modular kitchen, free ACs, Dishwashers, etc.), additional car parking slots, gold coins and vehicles in some cases. “Some of the festive plans also comprise of innovative payment schemes that require minimal upfront payments (up to 20%-30%) at the time of launch and smaller periodic payments till the time of possession,” adds Kashyap.
Developers’ Expectations For Residential Segment
Taking the above-mentioned things in view, there are high expectations from the festive season this year. In fact, the housing segment has done well this year, and after a dip in the previous quarter, the festive season is likely to spur growth.
“Real estate developers are launching new projects with new features in anticipation of high demand. The market sentiments are also likely to remain upbeat in the upcoming quarter despite the recent increase in home loan rates because they are still lower than pre-pandemic levels,” says Sudhir Pai, CEO, Magicbricks.
Homebuyers are aware that prices are rising and they find it an opportune time to invest before they rise further. “While incentives during the festive season are a regular annual feature, this time around they could be key to ensuring continued sales momentum over the next several quarters,” adds Pai.
Ashwinder R. Singh CEO, Residential BhartiyaUrban, says, “Indian homebuyers, whether active or passive, eagerly wait for this festive season to make purchases which they have been saving throughout the year to invest in this auspicious season, and each year we have seen spikes in sales during the months of October and November. Developers and financial institutions, to capitalise on the pent-up demand, come up with lucrative payment schemes and offers such as ‘EMI holiday’ or ‘Design your EMI’ creating a win-win scenario for all.”
“The festive season has elevated demands for high-quality and branded homes. Buyers are making a headway to the markets with aspirations to make their dream homes a reality. The festive season always sees a marked uptick in enquiries. We are confident that this festive season will set the pace for buoyant demand in the real estate segment in the upcoming quarters,” says Prateek Mittal, IIT Alumni, Executive Director, Sushma Group.
Developers say with Diwali around the corner, buyers choosing to invest in homes must be facing cost overruns and budgetary overflows. Home investments are not single-point investments, but they have many associative and multiple streams of monetary outflows as well.
“Recognising the needs of homebuyers and planners, we have launched Diwali special offers to provide customer-centric assistance, minimise costings, and aid buyers in making smart investments. Along with our property consultancy services, we are offering a complimentary home inspection tour conducted by experienced and qualified MEP engineers at the time of possession, says Shrey Aeren, Managing Director & Country Head of Berkshire Hathaway HomeServices Orenda India.
“Until the time of possession, buyers can also avail of free access to our participating clubs across the country; offering subsidised F&B rates, club bookings for events at nominal prices, and discounted room rates etc. In addition to this, we will also provide trucks and vans for shifting, moving into new homes and relocation purposes at reasonable prices. Festive seasons are specially earmarked for buying new homes and marking new beginnings in life. Vastu is also an essential part of Indian culture and is regarded as one of the critical features analysed by Indian families when choosing homes. With respect to that, we are also giving free onsite Vastu consultancy services to enable buyers with better knowledge of Vastu placements and alignments, and guide them to begin their new phases of life with positive and harmonious energy,” Aeren adds.
Expectations For Commercial Realty
Like the residential segment, the commercial sector is also betting big on the festive frenzy.
Salil Kumar, Director-Marketing and Business Management, CRC Group, says, “The festive season is one of the busiest and most profitable periods for the real estate sector. The ongoing customers’ demands and queries for space leasings in commercial offerings indicate promising pre-festive trends. Banking on the budget-friendly offers and benefits announced by developers, investors are placing their bets on launching their outlets, stores, and ventures in mixed-use establishments, retail parks, malls etc. Commercial real estate in the NCR region will strengthen its hold and see an increase in bookings and sales of office spaces as companies are becoming fully functional from offices now.”
Is This The Right Time To Buy A Home?
Industry experts say this may be the best time to buy a home as one will get multiple offers, payment plans & discounts during the festive season.
“Real estate developers also understand that this is the best time for them to clear their investory. So, there is lots of competition in the market and all developers come out with the best payment schemes, pricing offers & discounts,” says Dr Mohit Ramsinghani, Chief Sales Officer – Luxury, Shapoorji Pallonji Real Estate.
According to Dr Ramsinghani, buying a home during the festive season will give you the power of 4 P’s:
Perfect Timing – It is seen as an auspicious time to enter into something new.
Product – It is the time when a real estate developer launches the best product in the portfolio.
Pricing – Real estate developers come up with the best pricing offers & discounts.
Payment Plan – The best of the payment plans & schemes will be introduced during this period.
Because of these reasons, the festive season may be best time to buy your dream home. So, what are you waiting for?