The holiday season is finally here, and every industry has started betting big on it to boost fortunes, including real estate. Because, shoppers prefer to make major purchases during the holiday season as it is considered auspicious by the majority of people. Sales of all kinds of goods and merchandise skyrocket during this time of year.
Although the second quarter was not very good for real estate, the 7 main cities of the country saw home sales moderate by 15% – from around 99,550 units in the first quarter of 2022 to around 84,930 units in second quarter of 2022, according to ANAROCK Research data, however, defying odds such as the inauspicious “shraadh” period, excessive monsoons and rising property prices and interest rates, sales momentum housing continued smoothly into the following quarter, and as many as 88,230 units were sold across the top 7 cities in Q3 2022, representing a 4% quarterly increase and a 41% year-on-year increase.
Commenting on this trend, Anuj Puri, Chairman of ANAROCK Group, said, “Home sales and new launch momentum remained strong across the top 7 cities in Q3 2022 despite major headwinds. The appetite for home ownership has not been deterred, with peak sales being driven by end users. Interestingly, there was an increase in new supply by major developers and listed developers, who also reported strong home sales. This trend will most likely continue in the upcoming festive quarter, as homeownership sentiment has increased significantly post-pandemic. To maintain sales momentum during the current holiday season, developers have rolled out lucrative introductory offers which are well received in the market.
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Ashish Narain Agarwal, founder and CEO of PropertyPistol.com, has a similar view. “We are seeing an upturn in internal sales to the benefit of the entire real estate fraternity. I think the holiday season is an encouragement to buy a home as usual and despite all the situational factors like a rate hike or a price hike, this season sets the tone for auspiciousness, the prosperity and good luck, which makes buying a home a necessary and important matter. Meanwhile, developers are offering festive deals and the market is filled with optimistic sentiments,” he says.
Industry experts believe that this festive season, which comes after two years of the pandemic, will bring a turnaround in the industry. The real estate market is already buoyant with several successful locations, new areas coming up and developers launching new projects.
Why do sales increase during festive periods?
Shoppers prefer to buy things during the festive season as it is considered auspicious. Sometimes buyers want to close deals on a day or time window like “Dhanteras” or “Navratras”. Sales of all kinds of merchandise skyrocket during this time of year and over the years, so has real estate.
“This year’s holiday season follows a relatively buoyant past 12 to 14 months in the real estate industry. The holiday season would prolong this race for the sector as there are various options for buyers across new launches as well as ready-to-move segments. However, translating the festivities into real estate sales is a function of various intricacies such as the availability of lucrative offers, appropriate inventory, buyer sentiments, the lucrativeness of real estate asset class investments, to name a few. a few,” says Ashutosh Kashyap, Director, Consulting. Services, Necklaces India.
Typical festive offerings include programs such as giveaways in terms of tangible additions such as interior apartment furnishings (modular kitchen, free air conditioners, dishwashers, etc.), additional parking spaces, gold and vehicles in some cases. “Some of the party plans also include innovative payment schemes that require minimal upfront payments (up to 20%-30%) at launch and smaller periodic payments until ownership,” Kashyap adds.
Expectations of developers for the residential segment
Considering the things mentioned above, the expectations for the holiday season are high this year. In fact, the housing segment has done well this year, and after a decline in the previous quarter, the holiday season should drive growth.
“Real estate developers are launching new projects with new features in anticipation of high demand. Market sentiments should also remain bullish in the next quarter despite the recent increase in home lending rates as they are still below pre-pandemic levels,” said Sudhir Pai, CEO of Magicbricks.
Homebuyers are aware that prices are rising and they are finding the right time to invest before they rise further. “While incentives during the holiday season are a regular annual feature, this time around they could be key to ensuring continued sales momentum in coming quarters,” adds Pai.
Ashwinder R. Singh CEO, Residential BhartiyaUrban, says, “Indian homebuyers, whether active or passive, are looking forward to this festive season to make purchases they have been saving up all through the year. year to invest in this auspicious season, and each year we have seen sales peaks during the months of October and November. Developers and financial institutions, to capitalize on pent-up demand, are offering lucrative payment schemes and offers such as “EMI vacation” or “design your EMI” creating a win-win scenario for all.
“The festive season has increased the demand for high quality, branded homes. Buyers are moving into the markets with aspirations of making their dream home a reality. The festive season always sees a marked increase in inquiries. We are confident that this festive season will set the tone for sustained demand in the real estate segment over the coming quarters,” said Prateek Mittal, IIT Alumni, Executive Director, Sushma Group.
Developers say that with Diwali around the corner, buyers choosing to invest in homes face cost overruns and budget overruns. Real estate investments are not one-time investments, but they also have many associative flows and multiple monetary outflows.
“Recognizing the needs of homebuyers and planners, we have launched special Diwali offers to provide customer-centric support, minimize costs and help buyers make smart investments. In addition to our real estate advisory services, we offer a free home inspection visit by experienced and qualified MEP engineers at the time of possession, says Shrey Aeren, Managing Director and Country Manager, Berkshire Hathaway HomeServices Orenda India.
“Until time of takeover, buyers can also enjoy complimentary access to our participating clubs across the country; offering subsidized F&B rates, club bookings for events at nominal prices and discounted room rates, etc. The holiday seasons are especially dedicated to buying new homes and making new starts in life. Vastu is also an essential part of Indian culture and is considered as one of the critical characteristics analyzed by Indian families when choosing houses. In this regard, we also offer free on-site Vastu counseling services to enable buyers to better understand Vastu placements and alignments, and guide them to begin their new life phases with positive and harmonious energy” , adds Aeren.
Expectations for commercial real estate
Like the residential segment, the commercial sector is also banking heavily on the festive frenzy.
Salil Kumar, Director of Marketing and Business Management, CRC Group, says: “The festive season is one of the busiest and most profitable times in the real estate industry. Continued customer inquiries and requests for space rental in commercial offerings point to promising pre-fest trends. Banking on the deals and economic benefits advertised by developers, investors are betting on launching their outlets, stores and businesses in mixed-use establishments, retail parks, malls, and more. Commercial property in the NCR region will strengthen its grip and see an increase in office space bookings and sales as businesses now become fully functional from offices.
Is it the right time to buy a house?
Industry experts say now may be the best time to buy a home, as one will get several offers, payment plans and discounts during the holiday season.
“Property developers also understand that now is the best time for them to clear their investment. So there is a lot of competition in the market and all the developers are offering the best payment systems, price offers and discounts,” says Dr. Mohit Ramsinghani, Sales Manager – Luxury, Shapoorji Pallonji Real Estate.
According to Dr. Ramsinghani, buying a house during the festive season will give you the power of the 4 Ps:
Perfect timing – It is considered a good time to step into something new.
Product – This is when a real estate developer launches the best product in the portfolio.
Pricing – Real estate developers offer the best price offers and discounts.
Payment Plan – The best payment plans and schemes will be introduced during this period.
For these reasons, the holiday season may be the best time to buy your dream home. So what are you waiting for?