Indian Real Estate Sees Boost in Festive Season Sales
Indian real estate players are experiencing a surge in sales during the festive season, with new launches, enticing offers, and increased interest. Traditionally, the auspicious festive season accounts for almost a quarter of annual home sales, and this year seems to be following that pattern.
Knight Frank, a leading real estate consultancy, reported a 37% increase in property registrations during the first nine days of Navratri in Mumbai compared to last year, with 4,594 registrations. Experts predict strong sales growth in all seven major metro cities throughout the festive season, which spans from mid-October to mid-December.
Consumer sentiment has been robust this year, with home sales in the first nine months of 2023 reaching 91% of the total sales in 2022 across the top seven cities. This marks the highest sales volume since 2008, according to JLL, a prominent real estate services firm.
Shishir Baijal, CMD of Knight Frank India, commented, “With sales volumes holding strong so far this year, moderately increasing property prices and stable interest rates will serve as key catalysts for the housing market in the remainder of 2023.”
Real estate developers are already witnessing a surge in inquiries and are optimistic about the festive season. Ramani Sastri, CMD of Sterling Developers, expects around a 20% growth compared to last year. Lincoln Bennet Rodrigues, chairman & founder of The Bennet & Bernard Company, noted an over 8-10% increase in properties being purchased or booked. He added, “During this time of the year, 30-40% of our annual sales occur. Needless to say, as a developer, we are looking forward to the upcoming festive days.”
Developers have also increased the number of new launches during this period. Anuj Puri, chairman of Anarock Group, revealed that 711 residential projects, comprising approximately 1.16 lakh units, were launched in the top seven cities during Q3 2023. This marks a 24% increase in the number of units launched compared to the same period last year.
The festive season is expected to witness even more new launches. Last year, 93,000 units were launched across the top seven cities during the festive quarter of October to December (Q4 2022). Anuj Puri expects at least a 10-15% annual growth this year, bringing the number of launches above one lakh units.
Furthermore, developers are offering schemes, incentives, and discounts to boost sales during the festivals. These include free modular kitchens, furniture, flexible payment plans, GST and stamp duty waivers, as well as giveaways like gold coins, cars, and international trips. Banks are also joining in with Low EMI Schemes, Fixed EMI Schemes, and Attractive Interest Rates to attract buyers.
The real estate sector has been thriving since the pandemic, and the festive season has re-energized it, with people showing willingness to buy or upgrade their homes. Unlike other sectors where the post-pandemic boom effects are fading, the property market is displaying continued strength and growth.
Sources:
– Knight Frank: [article link]
– JLL: [article link]
– Anarock Group: [article link]
– Swapnil Anil, Colliers India: [article link]