By Chetan Patel, Director, Gurukrupa Group
It’s that time of the year when Indians tend to go on a buying spree. Come August, India gets into the festive mood and people rush to buy new clothes, gold and silver and make well thought-out investments in real estate. Investing in a home during this period is considered auspicious.
Real estate prices are showing signs of escalating; buyers want to cash in on the opportunity now, before the rates skyrocket. It is also a fact that at 7.9 per cent, home loan rates are slightly higher than the pre-pandemic days. Yet, they are not unaffordable, and buyers want to make use of the opportunity while the going is good.
There are other factors that are contributing to this trend this year. We are now in the post pandemic period. The latent buying desire that could not be fulfilled during the last two years is now surfacing. People were advised to be cautious and save every penny during the pandemic. That is no longer the case. India’s GDP continues to grow at seven per cent, and jobs are on the rise. The immediate future looks good for the average Indian.
The festive season is considered to be auspicious not only for buyers, but also for developers. This is the time when builders launch new properties. The rise in demand is driving them to undertake projects at a rapid pace and put out attractive buying opportunities in the market. The competition is high, and high competition spurs the market even further.
Apart from homes, there is also a surge in the demand for office space. Hybrid work is now the norm. Offices are moving away from their traditional spaces and seeking flexible work spaces in well appointed offices. They are relocating from the conventional business districts to areas that are easily accessible by all employees, where convenience and efficiency are seen as the major objectives. The entire work paradigm is being re-imagined. Developers are keenly watching this new trend. New commercial spaces are coming up, where shared working space, flexibility of space and time and high-end digital connectivity are being offered. The redevelopment segment is also seeing a major boost.
The pandemic brought with it a sense of insecurity and displacement. The younger generation, fresh out of this uncertainty, wants a sense of permanence and security. For this generation, the present period is the right time to realise that need. India is a young country and the millennial generation is brimming with confidence, supported by a high disposable income and myriad job and self employment opportunities.
The new India also wants larger homes with all modern amenities. The ‘work from home’ ethic has given them a clear sense of what they need in a home. Developers are bending backwards to offer them good quality, spacious homes with ample parking space, entertainment opportunities, schools, banks, shopping malls and eateries all within striking distance. They are offering attractive discounts coupled with simple conveniences such as built-in wardrobes, modular kitchens, exhaust fans, mosquito and pest-proofing and bed and bath amenities. In some under-construction properties, if the buyer furnishes a clear commitment to take possession when the property is ready, developers even offer to pay them rent till the property is ready for them to take possession.
The decision to buy a new home is intensely emotional. For many, it represents one of the most major decisions that they will make in their life. The auspiciousness of the festive season provides them with the lever that drives them to take the plunge. Once that is done, there is no looking back. This is India’s growth story. It is the story of India’s people, and combines aspiration, upward mobility, religious fervour, faith and security into one single entity: Home.