New housing launches and sales in the third quarter of Calendar Year 2024 in the top 9 cities showed a decline of 11% and 18% respectively, according to data by PropEquity. While, Mumbai real estate market reported a 10% drop in total number of property registrations and touched 3,400 during Ganesh festival 2024 compared to 3,700 during Ganesh festival 2023, Hyderabad’s real estate market witnessed a sharp decline in both sales and new launches during the July-Sept quarter, highest among major metros in the country. Bengaluru and Kolkata too saw a significant drop in new housing launches during the Q3 period.
These are just some of the instances of the slow down in real estate across the cities in the last few months. The sector is pinning its hope on the festival times for sales growth. Going by historical data also, there is a significant increase in real estate sales during festivals in India. With this trend in mind, the real estate players anticipate a hike in sales and new project launches in the coming months.
AN AIR OF POSITIVITY
The real estate governing bodies are optimistic for the coming months with Diwali and New Year approaching as they believe it will have a positive impact on the real estate markets. The experts express that the housing demand especially will continue to rise as incomes and population grow, and the market fluctuation is a normal behavior.
The real estate developers are of the view that the ongoing infrastructural developments, the attractive interest rate environment, and the growing trend of homebuyers seeking better lifestyle options will be the drivers of real estate growth. The festive period specifically will see a surge in demand due to innovative offerings by developers and the introduction of new projects in the market.
FESTIVE MARKETING STRATEGIES
To make hay during the festive season, realty firms across the country have increased their marketing spends and also focusing on property exhibitions and attracting NRI clients. Many developers have launched targeted campaigns across cities offering exclusive deals to meet the festive demand. A few others have launched new proper- ties providing exclusive payment plans to engage prospective buyers. Some other strategies to attract the buyers include flexible payment plans like 30:40:30, 40:60, no EMIs for a set amount of time, waiving stamp duty and registration charges and offering value additions like modular kitchens.
Creating virtual tours for real estate sales are coming in handy for the overseas prospective buyers to sway them to make the purchase during the auspicious time. Using influencer marketing for real estate promotions during this time to build interest about the projects is another way to target the specific demographics and build on the positive sentiments of the people.
HOMEBUYERS SENTIMENTS
Festivals are a trigger for people to spend and fulfil their big wishes. Festivals symbolize prosperity and new ventures and a buying a new home is supposed to provide a new beginning. Therefore, the festival season becomes one of the best times for developers to target those buyers, who might be considering an upgrade or a purchase.
Homebuyers respond to festival specific campaigns more positively, which in turn means more lead conversions into booking for the real estate firms. The carefully curated projects with right location, amenities, and competitive pricing and backed by exclusive festive offers, are sure to attract significant interest from the buyers.
FINANCIAL INCENTIVES
Apart from the exclusive promotional schemes from developers during festival season, enticing offers from housing finance companies too, create a golden opportunity for aspiring homeowners. Financial institutions providing competitive interest rates with a minimum login fee and tailored loan solutions specifically for first-time home buyers and special benefits tailored for women applicants/buyers, makes home ownership accessible and affordable. So, those considering a home loan, these festive months may be the ideal time to act and avail the best terms from banks and finance companies.
FACTORS DRIVING SALES
Indian real estate market size is estimated to jump to $5-7 trillion in next twenty years says a report by CREDAI and Colliers. Favorable demographics, urbanization, economic progress and rising aspirations of Indias are some of the factors that will contribute to the growth story of real estate.
This year, when it comes to sales, it’s been a mixed bag of trends differing from city to city, but there has been a significant influx of investors in the residential segment which is sure to drive the property prices up. In terms of budget segments, the luxury housing segment above RS 1.5 Cr has witnessed the highest traction among buyers followed by the premium (INR 80 lakh – INR 1.5 Cr) and mid segment housing (INR 40– 80 lakh). The affordable homes have seen the least sales in Q3 2024, in spite of the huge pent up demand.
The double-digit growth of prop- erty prices, much of the sales having concluded last year post covid and third quarter being the ‘shradh’ period for majority of Indians are some of the reasons cited by industry experts for the slow sales till now and they are confident that the overall, real estate market is stabilizing. In such a scenario, there are a lot of expectations from the festival months for boost in real estate sales.
OUTLOOK FOR THE FESTIVE SEASON
Although the initial dip in property registrations has been alarming for the industry players, developers are confident of the strong fundamentals driving the real estate market across segments. And with the infrastructure development, the market will regain its upward trajectory. Some experts point to well performing stock market diverting capital into real estate and possibility of interest rate cuts in coming months as the growth drivers for real estate. One aspect that all agree is that the festive season will see a rebound in the property markets. Buoyed by the festive spirit and favorable schemes, the potential buyers will take full advantage of the concessions and capitalize on this festive season. For those considering a home loan, this festive season may be the ideal moment to act, as housing finance companies tend to offer the best terms during this time.
The developers are presenting enticing offers to buyers and with property prices and interest rates on the rise, enticing offers by developers make the festive season an ideal time for prospective buyers to invest in property. Overall, the outlook this festive season is bright for the real estate sector as developers are designing best of plans to stimulate demand and maintain their sales momentum.
BUYING PROPERTY IN FESTIVE SEASON
The month of August is the harbinger of festival period across the country and with Diwali round the corner, the homebuyers are looking forward to investing in property. Here’s how to make the best of festive time offers.
It is that time of the year once again when the country is aring up for the festivals, beginning with Ganesh Chaturthi followed by Navratri, Onam, Durga Puja, Christmas right up to the New Year and Lohri. Beginning August, the whole country sees some form of cultural celebrations or occasions considered to be auspicious.
Festivals hold significant cultural and religious importance and are supposed to be the right occasions to make major life decisions. And, buying a property is one big life purchase that most Indians defer for festival times, as it is believed to bring good luck and prosperity.
Another reason for a spike in property buying during this time is that the salaried professionals see increased cash flow on account of bonuses and perks, which they plan to invest judiciously. Investors also capitalize on festive season to take advantage of numerous offers and incentives available from developers, in this period.
For the real estate sector too, the festive season has become an annual high point for project launches and high sales and bookings especially in the residential segment. Developers are known to offer lucrative discounts on ready to move in properties during this time to clear their inventories and also launch new projects.
Recognizing that homebuyers are keen on new investments and purchases during the festive months, developers look forward to this time of the year to launch projects and sell out their existing inventory. Apart from this, ready-to- move-in home options are available and consumers have a wide choice of properties to buy from. Thus, a mas- sive number of projects are available during the festive time across various budget segments.
PROPERTY SHOPPING
Festival season is the time, when you will see many property exhibitions coming up in your city. These expos are a good place for prospective buyers to explore, compare, and select properties from a wide array of projects. Many developers too, organize property fests to display their properties across cities and segments for the buyers to explore in one place. Many a times, they have tie-up with finance providers, so easy access to them is also possible.
Apart from the showcasing of array of properties in one place, the property exhibitions also see presence of other professionals like bank advisors, real estate agents and design & product companies. Thus, under one, roof, a prospective buyer can discover many properties as well as gather relevant information on other aspects of property buying.
What is to be kept in mind is that, the exhibitions can only give you an overview of the projects. One must ensure to get detailed information of the project and site visit before making any bookings.
CHECKLIST BEFORE PURCHASE
Festival season is the time when developers to, cash in on the consumer sentiments launch various offers and schemes. While many of these offers are honest and benefit the buyers, some may not be so genuine. Therefore, a cautious ap- proach and understanding the terms and conditions in detail, is advised. In addition, property buyers should not only look at the attractive deals but, take into account the repute of the firm, its track record and previous projects.
Many developers provide flexible payment plans such as 10% or 20% initially, and the rest on the time of possession or allowing homebuyers to move into the apartment after depositing 20% of the cost of the apartment and paying the balance 80% in equal installments from the date of getting possession.
The sector is pinning its hope on the festival times for sales growth. Going by historical data also, there is a significant increase in real estate sales during festivals in India.
The realty firms plan specific marketing campaigns during this time to reach out people during the festival season. The virtual tours, personalized ads, influencer collaborations, and data-driven targeting are some of the digital strategies employed by the companies to make the most of festival times.
REASONS TO BUY DURING FESTIVE SEASON
Festive Offers – Developers often offer attractive discounted property prices and payment options, in addition to incentives like, free parking, stamp duty waiver or white goods.
Loan Deals – Banks and housing finance companies too, offer lucrative inter- est rates on home loans and incentives like processing fee waiver during the festive season.
Projects Options – With increased interest from buyers’, developers launch new projects during the festive season, which gives more options to choose from.