Holiday season continues to boost real estate sales
Hyderabad: Dussehra and Diwali have ended this year, but festive discounts and special offers are still going on in the residential and commercial real estate segments, pushing up sales across India. According to property experts, property sales will continue during this season until the Pongal festival in January 2023.
This holiday season comes at a time when consumer demand is already robust across all sectors and, in fact, real estate has seen the strongest rise relative to other segments. Additionally, strong market sentiments similar to pre-Covid levels have boosted demand this festive season, said Rajan Bandelkar, chairman of the National Real Estate Development Council (Naredco).
“The October-December (Q4) quarter of 2022, which typically sees healthy demand, is expected to continue the tradition this year and in fact would see a significant year-over-year increase in home sales. at a time when interest rates are on the rise, developers have offered festival-specific solutions including simple EMIs and innovative financing models to support homebuyers,” he said.
Given the surge in the propensity to own a home and the presence of attractive offers, the outlook for the residential real estate sector is quite robust for the fourth quarter of 2022. “Also during the holiday season, more sales will happen.People are always waiting for auspicious days to book their properties,” said G Ram Reddy, Deputy Chairman of the Confederation of Real Estate Developers Associations of India (Credai).
The residential real estate segment is experiencing a boom in this festive season. Homebuyers generally tend to invest in properties during the holiday season, as this is a great time to buy a home. Home loan interest rates have increased but this has not really affected the growing demand as rates are still lower than pre-pandemic levels.
Developers across the country are anticipating high demand and thus launching several new projects with new features and conveniences. Builders also offer freebies and other enticing incentives to tempt buyers. However, it’s important to note that holiday season deals are only relevant when shoppers think they’re getting a good deal, said Raksha Ramaiah, director of MS Ramaiah Developers. He said: “Festive offers are a good way to eliminate unsold inventory. This holiday season, the sentiments of people looking to upgrade to larger homes with better facilities could boost home purchases. The incentives of the holiday season are given out every year, but this year it could be key to ensuring that the prolonged sales growth continues in the coming quarters.”
Talking about the commercial real estate segment, Ramaiah said that it has witnessed phenomenal growth in the third quarter of 2022 and is confident to go from strength to strength during this festive season. The segment remains buoyant with favorable economic and market sentiment which will drive demand for commercial real estate in the coming months. The recovery from the pandemic, rapid recall campaigns and emerging workplace trends have also boosted demand in the commercial sector. The commercial real estate sector has been doing well for the past few months and should continue to do so. The office space segment has seen growing demand from startups and small businesses.
Ramaiah adds, “Amid the trend of office reopening, as most companies pursue ‘work from home’ and the hybrid working model, various companies are cautious about their expansion plans and considering bringing back employees in the office. This indicates positive signs of demand for offices and flexible workspaces.”
He adds, “The commercial segment is in a safe place and ready with a considerable amount of space rental activity also taking place ahead of the festive season. Builders are presenting attractive deals and offers on completed reservations Other investor-friendly offers are also being distributed to increase buying and selling activity in the trading sector, and the festive season is a good time for that.”