Real estate developers are betting big on the festive season and lined up launched to ensure enough supply as demand for homes have gone up due to Covid.
Developers said that pandemic has reaffirmed the significance of homeownership and provided a fillip to the demand for spacious homes endowed with best-in-class amenities.
“With people being confined to homes in the new normal for a long period, the demand for homes with ultra-modern amenities will undoubtedly catapult in the festive season. In the offing, we have low rise developments with all the benefits of a condominium,” said Pankaj Bansal, Director, M3M.
In the commercial segment, M3M is offering pre-leased investment opportunities.
The decline of the second wave and the resurgence of business activity has provided a fillip to the demand for residential real estate. In an effort to increase consumer spending, banks are offering home loan interest rates between 6.5 per cent and 6.9 per cent.
“The festive season always sees a marked uptick in enquiries. We are confident that this festive mood will immensely boost sales and enquiries,” said Ashish Sarin, CEO, AlphaCorp.
According to the industry reports, NCR market is expected to see nearly 16,000 new units in the festive quarter with a growth of more than 50 percent over H1 2021. Additionally, the season will also end market uncertainties brought in by the pandemic.
“We foresee the festive season to set the pace for buoyant demand in the residential segment in the coming quarters. The initiatives by the industry will develop the roadmap for real estate growth,” said Ashok Kapur, Chairman, Krisumi Corporation and Krishna Group.
Personalisation and sustainability have emerged as key undercurrents in the residential realty segment.
Mapsko Mountville, a project located in Sector 79, Gurugram has witnessed increase inquiries amid the festive season.
“India’s residential real estate market is expected to witness a strong demand for apartments, independent floors, villas and plots during the upcoming festival season. A strong revival in the country’s economic growth in the current fiscal, historical low interest rates on home loans and lucrative festive offers by developers as well as financial institutions will be the major drivers of housing demand,” said Dhruv Agarwala, Group CEO, Housing.com.
With housing prices remaining stable over the last few years, it is a good opportunity for both end user customers and investors to enter the market and purchase residential properties.
“The real estate market has had its share of ups and down post the pandemic and we are banking on the festive season, which starts from October will bring cheer to the segment. In terms of sales, the year 2021 has been great for the developers,” said Aditya Kushwaha, CEO and Director Axis Ecorp.
Despite the second wave, there was a 67% jump in sales in the residential real estate sector in the first half of 2021.
“We believe that this momentum will continue and in the coming months, there will be a 30-35% jump in sales. Factors such as low bank interest rates, stamp duty cuts in some states, demand for larger/spacious homes to accommodate work from home have been instrumental in driving sales in this sector,” Kushwaha said.
The wide range of products in line with the current demands will steer the real estate ship towards a recovery path.
“We expect that the sales will surpass pre-COVID festive buying due to the increased awareness among buyers/investors of the financial viability of real estate assets. The signs are apparent with the sales numbers seeing a tremendous spike post-June 2021,” said Navdeep JP Sardana, Founder, Elite Landbase Pvt. Ltd.
In the aftermath of the epidemic, the real estate market is seeing favourable buyer and investor sentiment. From June 2021, when states began the progressive opening-up process, home sales and new launch numbers rose.
For the festive season, Migsun Group, Gulshan, Gaurs, TDI Infratech and Signature global have come up with various offers.
“We are expecting good buyer and investor turnout during the festival season; the market has opened up and people are looking for good deals. The coming few months are going to cover up the slowdown of April-May 2021, which was already evident from June 2021 onwards,” said Uddhav Poddar, MD, Bhumika Group.
As per reports, the sales in the housing segment surged 113% in the top 7 cities even as prices rise in the month of September. This momentum is expected to continue in the coming festive season.
“Not only will there be interesting launches to look forward to but the developers will also be introducing lucrative offers to the consumers. To sweeten the deal, developers will have to offer not just reduced pricing on the properties but also make options available that does not demand a high upfront payment. Another good option would be to offer multiple payment options to prospective buyers,” said Vinit Dungarwal, Director, AMs Project Consultants Pvt. Ltd.
Certain sectors such as holiday homes, luxury homes and affordable housing will continue to outperform.