Indian real estate is gearing up for a bumper festive season with substantial project launches, enticing offers, and heightened activity. This festive period, which traditionally witnesses nearly a quarter of annual home sales, is off to a promising start.
Surge in Property Registrations
According to Knight Frank, Mumbai saw a remarkable surge in property registrations during the first nine days of Navratri, with a 37% increase compared to the previous year, totaling 4,594 registrations. Anticipations are high for robust sales growth across the top seven metro cities during this festive period from mid-October to mid-December.
Strong Consumer Sentiment
The consumer sentiment has remained robust throughout the year, with home sales in the first nine months of 2023 reaching 91% of the total annual sales for 2022 across the top seven cities. This marks the highest sales volume since 2008, as noted by JLL.
Key Catalysts for Housing Market
Shishir Baijal, CMD of Knight Frank India, emphasizes that steady sales volumes, moderately increasing property prices, and stable policy interest rates will act as pivotal catalysts for the housing market in the remaining months of the year.
Developer Expectations and Surge in Inquiries
Real estate developers are optimistic about significant growth during this festive season. Ramani Sastri, CMD of Sterling Developers, anticipates around a 20% growth compared to last year, fueled by a surge in inquiries.
Lincoln Bennet Rodrigues, chairman & founder of The Bennet & Bernard Company, notes an over 8-10% increase in property purchases or bookings during this period, representing a significant portion of their annual sales.
Increased Project Launches
To capitalize on the positive sentiment, developers have ramped up new project launches. Anarock Research reports 711 residential projects comprising approximately 1.16 lakh units launched across the top seven cities in Q3 2023, showcasing a 24% increase in units compared to the same period last year.
Festive Quarter Expectations
The festive quarter is poised to witness even more launches, with expectations of exceeding one lakh units, a 10-15% yearly growth compared to the previous year’s festive quarter.
Sweetening Deals with Offers and Schemes
Developers are enhancing offers and schemes to entice buyers further. These include free modular kitchens, furniture, flexible payment plans, GST and stamp duty waivers, and attractive giveaways such as gold coins, cars, and international trips. Banks are also offering Low EMI Schemes, Fixed EMI Schemes, and attractive interest rates to bolster sales during the festive period.
Resilience of the Real Estate Sector
The real estate sector, experiencing an upswing since the pandemic, continues to gain momentum during the festive season, reflecting a strong desire among consumers to invest in or upgrade their homes. Unlike some sectors where post-pandemic booms are fading, the property market remains robust and continues to grow.
