India is celebrating Diwali in a true sense after two very long depressing years. The real estate sector has all the reasons to cheer up as the festive time is also considered one of the most auspicious times to purchase a piece of property.

Home loans are the major and foremost indicator of house buying activity. In the past 2 years, the number of home loans has skyrocketed as people realized the importance of owning a home. NoBroker.com, which has a growing home loan vertical, has disbursed Rs 200 crore home loans across the cities of Mumbai, Bangalore, and Pune, among others.

Speaking on this, Akhil Gupta, CTO and Co-founder of NoBroker.com, said, “We have seen a substantial surge in property searches, bookings as well as a sudden spike in home loan applications compared with the same period last year. This increase in loan applications and disbursements is the most significant indicator that more and more Indians are gearing up to buy a home this festive season. We expect a 60-70% increase in home buying activity in and around the Diwali period.”

This overwhelming demand from buyers is driven by multiple factors. For instance, real estate players offer deals and discounts during Diwali; most of the 100+ developers that NoBroker works with have already launched lucrative festive offers. Many new projects are also launched during this time.

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The intent to buy has also increased in the post-pandemic world, with more Indians realizing the comfort, safety, and peace of mind that come with owning a home. The rent amounts have almost doubled. If earlier you could get a 2BHK flat for Rs 25,000, now you are getting it for twice that amount. People have started feeling that EMIs and rents are at par, so it makes sense to invest in a property rather than staying on rent.

The younger generation/millennials were traditionally the kind of people who preferred renting over buying. But now because COVID has reinforced the importance of owning a home in all demographics, even younger people are going for home-buying. The percentage of millennials from the age group of 25 years onwards on the NoBroker platform has increased by 45%. These young home buyers saved significant money during the pandemic and see home purchase as a good investment option.

According to NoBroker, the importance of owning a home has increased now as many people have been able to save lots of money during the pandemic times by not spending much on lifestyle, entertainment, travel, or leisure. So, there has been a 50-60% jump in people looking for 3BHK flats instead of 2BHK.

Akhil added, “The increased time spent at home during the lockdowns has made people realize not only the importance of owning a home but also to own a bigger space. Even millennial buyers are now flexing their superior purchasing power and using the savings made during the pandemic to buy a home. That they are doing so during the Diwali season, which has historically seen the biggest discounts on home prices, indicates their desire to maximize the value of their home purchase.”

The consumer purchase sentiment in India is rebounding after a tough two years of pandemic-enforced disruption. The increased interest around home buying during the festive season is not only indicative of a robust economic recovery but also promises a strong future growth trajectory for India.