The festive season in India transcends mere celebration; it’s a period of heightened vibrancy and potential within the real estate sector, making it an auspicious time for investment. Occasions like Navratras, Dussehra, Dhanteras, and Diwali, symbolizing new beginnings and prosperity, traditionally witness a substantial upswing in housing sales. Market stakeholders seize this opportunity to create an inviting atmosphere, often offering enticing discounts and valuable incentives, effectively galvanizing the real estate industry.
This annual high point for the industry brings forth a plethora of new projects and a range of incentives aimed at attracting homebuyers. During this season, the surge in demand for homes often translates into actual purchases, as prospective buyers are more inclined to transform their aspirations into reality, with a heightened emphasis on stability and security, further bolstering the demand for residential properties.
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The distinctive trend of the Indian festive season has evolved into a compelling investment prospect, driven by its deeply entrenched cultural significance and the abundance of readily available properties. Despite prevailing home loan interest rates, the demand for housing continues to exhibit remarkable resilience due to the affordability of properties in the market. The burgeoning influx of millennials into the real estate arena, propelled by their increasing disposable incomes and an insatiable appetite for opulent living spaces, stands as a driving force behind this trend. Homebuyers are not merely interested; they are keenly enthusiastic about finalizing their property transactions during this auspicious season, underscoring the market’s shift towards committed buyers.
Recent reports indicate a significant upswing in the housing real estate sector during FYQ3 2022, with 88,230 housing units sold in the top 7 cities—an impressive 4% increase from the previous quarter and a remarkable 41% surge from 2021. These statistics suggest the potential for a 20% increase in sales during Q3, the festive quarter, in 2023. What sets today’s housing demand apart is the fact that even millennials now view real estate as the most coveted asset class. The sector is poised for a promising future, propelled by rising consumer sentiment and a buoyant market. This growth aligns with the corporate landscape’s expansion and the escalating demand for enhanced lifestyles and superior housing options. The property market, driven by end-user preferences, is currently experiencing a surge in home purchasing activity, underpinned by increased savings and market stability. Homebuyer optimism has reached unprecedented levels, with customers displaying heightened confidence in making purchase decisions.
The festive season holds a special allure for millennials due to its potential for long-term value appreciation, stability, and financial security. Homeownership offers tax advantages, such as deductions on mortgage interest and property taxes, rendering it a savvy financial move. Government initiatives early in the year will further incentivize millennials to invest in property, making homeownership more accessible, this festive season. Year-end bonuses or financial gifts add to the allure, making homeownership a compelling choice for millennials keen on real estate investment.
In conclusion, the resurgence in market sentiment amid a backdrop of vibrant economic activity renders the festive season an opportune time for real estate investment. However, prospective buyers should not solely focus on attractive deals but also consider critical factors such as the developer’s reputation, location, execution capabilities, and the amenities on offer. The festive season has historically symbolized celebration and reflection, and for many, it represents a season of investment. As the real estate industry experiences a revitalization, it heralds a promising sign for economic recovery and growth. With cautious optimism, this festive season holds the potential to deliver a much-needed boost to the real estate sector.
(By Santosh Agarwal, CFO and Executive Director, Alphacorp. Views are personal)