Image showing an apartment complex. For representational purposes.
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Bengaluru: Home buying sentiments are strong this festive season, according to realty developers and consulting firms, particularly for the mid-market and premium segments.
Many developers are expecting more sales compared to last year’s festive season. Some such as Shriram Properties and Sterling Developers have said they are aiming for up to 20 per cent year-on-year (YoY) growth compared to last year.
“I foresee at least 1.5 lakh new homes being sold in the next three months across the top six cities in the country,” said Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India. Over 1.27 lakh units were sold across the top seven cities in the October-December 2023 period, as per Anuj Puri, Chairman, ANAROCK Group.
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said that rising property prices are affecting buyers’ decisions. Still, the luxury housing segment is seeing demand driven by a desire to fetch higher return on investments amid global economic uncertainties.
This period is also expected to see a boost in new property launches, with Brigade Group and Concorde among those who are planning new launches.
Developers are also launching schemes and discounts during this period to attract home buyers. “These range from equated monthly instalment (EMI) waivers, GST exemptions, and free registration and stamp duty to added benefits like modular kitchens, electronics, free car parking spaces, and even furnished apartments. To further attract buyers, some developers are partnering with banks to offer fixed interest rates for a set period,” Magazine explained.
Real estate companies have also pitched perks like flexible payment plans and return on investment (ROI) programmes. During this period, Concorde has increased its marketing expenses by 25 per cent.
“Despite higher loan rates, homeownership remains a priority for many. RBI data shows a substantial 40 per cent increase in home loan deployment,” Magazine said.
Many realty developers were also hoping for a reduced repo rate given by the RBI, which remained unfulfilled. Still, they remain optimistic about the unchanged rate.
“Policy stability bodes well in the ongoing festive season. As and when a rate cut is anticipated soon, which, when implemented, will benefit both homebuyers and real estate developers to capitalise on the market and strengthen overall economic growth,” said Pradeep Aggarwal, Founder and Chairman, Signature Global (India).