Festive season continues to boost realty sales
Property sales will continue to happen during this season till Pongal festival in January 2023, say real estate experts
Hyderabad: Dussehra and Diwali are over this year, but the festive discounts and special offers are still going on in both residential and commercial segments of real estate pushing the sales further up across India. According to the realty experts, the property sales will continue to happen during this season till Pongal festival in January 2023.
This festive season comes at a time when the consumer demand is already robust across sectors and in fact real estate has witnessed the strongest upswing compared to other segments. Further, strong market sentiments similar to pre-Covid levels have boosted the demand this festive season, said Rajan Bandelkar, President of National Real Estate Development Council (Naredco).
"The October-December quarter (Q4) of 2022 which usually witnesses healthy demand is likely to carry forward the tradition this year and in fact, it would register a significant year-on-year jump in housing sales. At a time when interest rates are on the rise, developers have come up with festival specific sops including easy EMIs and innovative financing models to support the home buyers," he said.
Given the rise in inclination towards owning a home, and the presence of attractive deals, the outlook for the residential real estate sector is quite robust for the Q4 2022. "Always during festive season, additional sales will happen. People always wait for auspicious days to book their properties," said G Ram Reddy, Vice-President of Confederation of Real Estate Developers' Associations of India (Credai).
The residential real estate segment is witnessing a boom during this festive season. Homebuyers usually tend to invest in properties around the festive season because it is considered to be an auspicious period for home buying. The home loan interest rates have gone up but it has not really affected the growing demand because the rates are still lower as compared with the pre-pandemic levels.
Developers across the country are anticipating high demand and are thus launching several new projects with new features and amenities. Builders are also offering freebies and other enticing incentives to tempt buyers. However, it is important to note that the festive season offers are relevant only when buyers believe they are getting a good deal, said Raksha Ramaiah, Director of MS Ramaiah Developers. He said, "The festive offers are a good way of clearing unsold inventory. This festive season, the sentiments of people looking to upgrade to bigger homes with better facilities could drive home purchases. The festive season incentives are doled out every year, but this year it could be critical to ensuring that the extended growth run in sales continues over the next several quarters."
Speaking about the commercial real estate segment, Ramaiah said that it has registered phenomenal growth during Q3 of 2022 and is confident of growing stronger during this festive season. The segment remains buoyant with the favourable economic and market sentiments driving the demand for commercial real estate in the months to come. The recovery from the pandemic, speedy booster shot drives, and emerging workplace trends have also pushed demand in the commercial sector. The commercial real estate sector has been going strong for the last couple of months and is likely to continue the momentum. The office space segment has seen rising demand from startups and boutique companies.
Ramaiah further says, "Amidst the trend of offices reopening, while most companies are continuing the 'work from home' and hybrid working model, various companies are being cautious about their expansion plans and mulling over bringing the employees back to the office. This indicates positive signs of the demand for offices and flexible workspaces."
He adds, "The commercial segment is in a secure place and is ready with a considerable amount of space leasing activities happening before the festive season, too. The builders are introducing attractive offers and deals on completed bookings. Other investor-friendly offers are also being doled out to increase buying and selling pursuits in the commercial sector, and the festive season is the right time for it."