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Festive fervour to perk up real property, boost housing sales

The second wave of pandemic has had a restricted impression on housing sales and new launches throughout the nation, principally as a result of the sector was higher ready this time.

Spurred by report low rates of interest, steady housing costs, steady employment situation and rising homeownership sentiment, residential sales and new launches have surged in current months. As per a current report by PropTiger.com, for example, residence sales and new launches have each proven a big enchancment throughout July and September 2021, indicating {that a} turnaround for the realty sector is perhaps across the nook.

In reality, a complete of 55,907 new housing items have been offered in India’s eight main markets throughout the three-month interval, exhibiting an upswing of 59% when put next to the identical interval in 2020. Likewise new provide additionally noticed a outstanding upswing in Q3, exhibiting a three-fold bounce of 228% to 65,211 items when put next to Q3 2020.

Knight Frank India’s Real Estate Update (July – September 2021) has additionally revealed that housing sales quantity throughout the eight main cities of the nation grew by a substantial 92% YoY to 64,010 items, whereas new residential unit launches elevated by 90% YoY to 58,967 items in Q3 2021.

These reviews point out that the second wave of pandemic has had a restricted impression on housing sales and new launches throughout the nation, principally as a result of the sector was higher ready this time. Also, with the festive season in full swing and shopper sentiment at a report excessive, trade consultants and builders expect housing sales to acquire additional momentum.

“Home sales across the country have surged significantly despite the pandemic. Homeownership has become a priority, with businesses focusing on remote work – and homebuyers’ need for bigger spaces. This, backed by the government’s initiatives to make housing affordable for all, has aided a strong recovery for the residential sector across the country. With the government’s mass vaccination initiatives, we can expect further growth in the residential sector in the festive season,” says Gaurav Kumar, Managing Director & Co-Head, Capital Markets, CBRE India.

“Historically, the festive season in India has always been considered an auspicious time to make home purchases, aided by lucrative schemes by developers. This, coupled with reduced interest rates, can be expected to further boost demand for housing properties in this festive season,” provides Kumar.

Industry consultants say the festive season has all the time been the harbinger of elevated sales within the Indian realty house. Despite the second wave of COVID-19 pandemic hitting the sector exhausting, the sector is buoyed as there’s a pent-up demand for proudly owning properties, banks are providing residence loans at engaging rates of interest and thereby the spending capability of the center class homebuyers has additionally improved.

Ashish Narain Agarwal, Founder & CEO, PropertyPistol.com, says, “The consumer sentiment is at an all-time high this year as people have realised that owning a home with better amenities is more important than ever. The sector has also been witnessing consolidation and large corporates are looking at opportunities to leverage business in the realty space in India. The trust and confidence from home buyers earned by the corporates will further add up to the growing demand for homes and thereby improve the sector immensely not just during the festive period but otherwise too.”

Going by the present traits, builders too are bullish concerning the progress prospects of the realty sector throughout the festive season.

“Unlike the previous years, this festive season is expected to see a paradigm shift in the psyche of the Indian buyer, who is more cautious, however, smarter than before and plans strategically before investing. Thus, the eyes are laid on the real estate sector, which has seen a significant increase in the residential sales despite spiralling Covid-19 cases and is expecting a jump in sales in the festive season. However, in contrast to the previous years of an impulse purchase, this year will be regulative to the pocket strings of the buyers. The trend and efforts by the developers along with the sudden pique in the interest of investors in real estate clearly indicate a positive outlook for the RE industry this festive season,” says Karan Kumar, CMO, DLF Ltd.

Mohit Goel, CEO, Omaxe Ltd, says, “Factors like all-time low home loan interest rates, bottomed-out real estate prices, discounts and government incentives have given wings to homebuyers to fulfill their dreams. This in turn has given a boost to the real estate sector not just in metros but in state capitals and tier 2/3 cities also. The positive market sentiment coupled with the festive season also bodes well for the sector.”

Developers consider that this festive season in opposition to the backdrop of the regaining momentum of financial actions augurs nicely for real property. The financial fundamentals are already sturdy, marked by a swift revival in demand, aiding the recovery of some segments.

“We foresee the festive season to set the pace for buoyant demand in the residential segment in the coming quarters. The festive season has undoubtedly uplifted the consumer sentiments in the residential sectors. For instance, our flagship project – Krisumi Waterfall Residences, located in Sector 36A Gurgaon, off NH-8 – has witnessed a surge in inquiries and footfalls in the past few weeks. At Krisumi Corporation, we have come up with lucrative offers such as a complimentary golf session at ITC’s Country Club & resort, a gold voucher worth Rs 2 lakh, an ITC Gift Voucher on every booking for a limited period, to make the festive season even more special for our patrons,” says Ashok Kapur, Chairman, Krisumi Corporation and Krishna Group.

Mukul Bansal, Director, Motia Group, says, “The real estate market has done well in the previous quarter and is expected to maintain its growth momentum during this festive season as well. At present, several favorable factors are playing their role in encouraging first-time home buyers. Various offers and schemes have been rolled out during the festive season for them. The growth pattern is not only witnessed in the metro cities, but tier 2 and tier 3 cities are also getting increased traction.”

Notably, together with the residential house, some segments of the business house have additionally began gaining tempo publish the pandemic.

“With strengthened consumer sentiment and buoyancy in the market, the real estate sector is quite optimistic during this festive season. The sector has been riding strong for the last couple of months and is likely to maintain this momentum. The office space segment has been gaining traction from IT/ITES, BFSI, startups and boutique companies. Amidst the trend of work from home, hybrid model, flexible office space and other possibilities, various companies are mulling over their expansion plans and bringing workforce back to office. This indicates positive signs for the demand of grade-A offices and flexible workspaces,” says Abhishek Pandey, Vice President-Customer Engagement & Distribution, Viridian RED.

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