By Mr.Shashank Vashistha, Executive Director of eXp Realty, India
Dussehra and Diwali are some of the festivals that are widely celebrated all over India. This season is considered one of the most auspicious times as it signifies the triumph of good over evil. Be it Durga Pooja in the north, or celebrating the defeat of Narakasura in the south, Dussehra and Diwali mark a favourable time for beginning new ventures. Thus, it is common to see new investments and purchases, especially in the Real Estate market.
With the fear of Covid-19 gradually receding and the economy picking up, customers now have the resources and the willingness to buy new houses. Developers are also keen to revive business, with many offering attractive new properties and a wide range of buyer discounts and EMI offers. Overall, housing demand has gone up by 92% in the July-September time period alone, with a sale of 64,010 units compared to 27,453 units during the corresponding period in 2020. Real estate consultants expect that the next quarter will be even brighter.
Factors supporting the demand for housing
Following a dip in demand during the pandemic last year, the festive mood and the relief of having come out of the pandemic will spur housing purchases. Neither will customers lack choices – in the Mumbai Metropolitan Region alone, real estate consultants expect 2 million square feet worth of property launches, with 25-30 big launches already planned.
- More vaccination and reduced caseloads – The worst of the Covid-19 pandemic is behind us, particularly now that more and more people are getting vaccinated. Customers now have the psychological bandwidth to think about buying houses and investing in a future.
- More savings – Over the last year, staying at home and minimising outings and gatherings has enabled more savings for buyers, meaning that they now have the resources to buy a house.
- Remote work is a reality – Many companies have already declared WFH to be their permanent mode of operation, while others have offered their teams a choice between coming to the office and working from home. This means that the home has become the place where one works, studies and enjoys recreational activities, rather than just a resting place. Moreover, those who had taken up rented houses near their offices now no longer have to. They can choose larger premium flats in locations of their choice and invest in furnishing them to their liking. Similarly, those who would have preferred affordable housing around metros and in small-town areas now have the flexibility to do so.
- Ready-to-move trend – While it was earlier the ‘done thing’ to buy houses still under construction, the new trend is to buy flats that are part of gated communities and are ready to move into, often with furniture. The convenience afforded by this model, as well as the premium facilities provided in the community, have stimulated housing demand especially among younger buyers.
- Re-entry of branded developers – Positive market sentiment in 2021 has also spurred branded developers like Prestige and Oberoi Realty to come back into the market. A key factor in this regard is the new government scheme by which developers get 50% concession if they pay upfront for all the approvals they need.
- Foreign investment – India has long been viewed as a valuable real estate market internationally. Many big companies have set up their offshore commercial and manufacturing hubs here, while residential property has also gained investment thanks to favourable FDI policies. This encourages builders to offer more prime properties across locations, improving choices for the modern homeowner.
Builders and developers underwent massive losses last year, owing to stalled projects on which payments had already been made, which is why festival discounts may not be as large as in other years. Despite this, however, the overwhelming trend is in favour of housing sales going up thanks to the pent-up demand of over a year. Developers are also offering incentives like spot discounts and stamp duty waivers to keep the interest going. It’s an exciting time to be in real estate, and an exciting time to buy a home amidst the many choices on offer. The sector is optimistic about not only recovering the losses of last year but also reaching new highs in the next few quarters.
Corporate Comm India (CCI Newswire)
