The festive season beginning from Ganesh Chaturthi and culminating in Christmas, and the arrival of the new year is considered to be an auspicious time to invest in residential real estate. The season, which is a much awaited time of the year when home buyers opt for high-ticket purchases, gives a significant thrust to the real estate sector and is marked by the launch of new projects, combined with a spectrum of benefits to attract home buyers. This is a time when demand sees conversion as home buyers prefer going ahead with planned purchases. The need for stability and security emerging as high priority in the minds of people is also a factor that will pep-up residential real estate. A big booster to housing demand has been the increased importance of owning a property backed by consumer confidence in the overall economic scenario. The trend of the Indian festive season becoming the annual high point for residential real estate originates from traditional sentiment and is the right time to invest in wealth-creating assets.
There is a healthy stock of ready-to-move-in and nearing-completion inventory that will be of high interest during the festive season. The current home loan interest rates are unlikely to compress the sustainable housing demand as the price band is still within a line of control. Rising home ownership among millennials supported by higher disposable income and willingness to upgrade to larger, luxurious spaces, equipped with better amenities have also sparked a sharp growth in housing demand. We are seeing a lot of home buyers who are eager to conclude deals in this auspicious season. The market continues to experience end user-driven demand and we are already witnessing a trend of more serious buyers closing sales.
As per a recent report, the residential sector has recorded a 9-year high sales volume in January-June 2022. A defining feature of today’s housing demand is that even millennials are now in the market for home ownership as real estate has become the most sought-after asset class. With strengthened consumer sentiment and buoyancy in the market, the real estate sector has an optimistic outlook going forward. The sector has been riding strong for the last few months and is likely to maintain this momentum. The growth of the Indian real estate sector is well complemented by the growth of the corporate environment and the rising demand for improved lifestyles and better residences. Customers are also increasingly stepping ahead to invest in their dream properties offered by developers, which match their opulent lifestyle and needs.
The biggest factor driving people to buy homes today is their experience during the Covid-19 pandemic and lockdown. It has made people rethink their priorities and hence owning a home has gained importance as it spells comfort and security. The end user-driven property market is experiencing a home buying rally and today, a rise in savings and market stability has encouraged home buyers to take the plunge. The past few months have been testament to the fact that home buyer optimism is at an all-time high as customers understand that they have various options and are able to make self-assured purchase decisions.
In conclusion, it can be said that revival in market sentiment against the backdrop of vibrant economic activities makes this season more attractive. However, while investing in property, buyers should not only look at attractive deals, but also consider the reputation of the developer and other factors like location, execution capability, and amenities that the developer has to offer. As we march ahead, the industry is set to see a new phase of steady growth, which is a positive sentiment for those looking to invest this season. Real estate is always a wise asset class given that it sees consistent appreciation.
Views expressed above are the author’s own.
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