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The festive season brings appraisals and bonuses for people and gives an impetus to those who had been wishing to buy their first homes as well as those who had been planning to upgrade their homes. Undoubtedly, the real estate firms tapping on these circumstances and the latent desire to own a home make the best of the times by offering lucrative deals.
Although CPI inflation continued to rise amidst global headwinds pushing the interest rates upward, the improved business confidence and retail spending during the festive season supported demand activity during Q3 2022. The RBI repo rate hikes amidst festive season too had a minimal impact on consumption sentiments because from a home buyers’ perspective, home loan rates still remain below tolerable 9% per annum limit and they are making their purchases by cashing in on offers and festive discounts in the market.
As Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers puts it, “RBI hiked the repo rate for the fourth time in a row as the government remained committed to tame inflationary pressures amidst global headwinds. In response, banks continued raising their home loan rates. As the rate hike was on expected lines and the market has largely recovered from the pandemic lows, the home buying sentiment was not impacted significantly. Given the festive season, developers too doled out attractive schemes to attract fence sitters and first-time homebuyers.”
“An auspicious investment season commences with the onset of Ganesh Chaturthi followed by Onam, Dussehra, Diwali, Christmas, and New Year. It is an ideal time to seal a value proposition investment deal. Post-Covid pandemic, homebuyers’ inclination towards spacious and flexible living in self sustainable ecosystems has picked up steam. We are very bullish on the residential real estate sector over the next 10-12 months,” shared Dr. Niranjan Hiranandani, National Vice Chairman- NAREDCO and CMD- Hiranandani Communities.
“The success of the real estate sector is wholly contingent upon the prevailing sentiments of homebuyers. This makes the festive season a time of optimism and hope for the Indian real estate market,” said Sanjay Dutt, managing director and CEO, Tata Realty and Infrastructure Limited (TRIL).
“Despite increased interest rates and basic property cost, the top 7 cities saw homes worth INR 1,55,833 Cr sold in the first half of FY23, rising yearly by 119%. The overall value of units sold in the corresponding period of FY22 was approx. INR 71,295 Cr. Between April and September 2022, approx. 1,73,155 homes were sold across the top 7 cities; approx. 87,375 units were sold in the same period a year ago. “Several developers see the period around Diwali as an opportune time to launch new projects, as buyer demand is quite high and they also lap it up with several offers. The numbers show that Diwali came early for developers, with homes worth INR 1.56 lakh Crore sold across the top 7 cities in H1 FY23” said Anuj Puri, Chairman , Anarock Group.
“Last one year has been phenomenal for real estate in terms of new sales volume. Pent up demand of the pandemic period, needing to have one’s own and larger home due to work from home and more disposable income in the hands of the customers due to income from stock market are the top 3 reasons. Plots have been the most selling product for us. Residential plots at M2K Adani Oyster Greens, commercial SCO plots at M2K Adani Oyster Arcade both located at Sector 102, Dwarka expressway, Gurgaom and plots at M2K Harmony & M2K Harmony -2 both located the most prime location of Dharuhera got sold in no time. Real estate sector will keep growing for next 2-3 quarters than it’s likely to be stable for a few years,” added Dr Vishesh Rawat, Vice President & Head - Sales, Marketing, CRM & Leasing, M2K Group.
"In India, the festive season is regarded as an auspicious time to purchase a home. It's time to embark on new journeys. Real estate developers incentivize homebuyers by sweetening the deals and bringing them to fruition. This festive season, Joyville too, gives its customers more reasons to celebrate with offers ranging from gold to home appliances and furnishings starting at Rs. 1.5 lakhs. The overall market sentiment has been very positive. We expect to see a significant surge in demand as we move closer to the festive season." Parikshit Pawar, Chief Marketing Officer, Shapoorji Pallonji Real Estate stated.
"As always, the festive season brings about a positive vibe in the market. Home buyers are more inclined towards property purchase during this period we have put together a thoughtfully curated bouquet of offers and schemes at our projects for the festive season. This will help in making their decision-making process easier and faster. At Runwal Group we have been witnessing a great year and the velocity has picked up further since the festive season started a month back. The Dussehra-Diwali period has always been good for the industry in general and we are certain this year will be no different. Like I have said earlier also, good projects by reputed developers will always have more traction and we have been seeing this at all our projects," expressed Rajat Rastogi - Executive Director, Runwal Group.
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