“Typically, Q4, marked by higher inclination of homebuyers to wrap-up property purchases in festive period and instantaneous liquidity benefit aided by developers offering attractive discounts, has historically provided the final push to residential activity.  Close to 40% of the annual residential units sold, achieve closure in the last quarter of the year. Industry consensus are indicative of 2023 housing sales already reaching close to 2022 levels and given the ongoing festive season, 2023 is likely to witness 20-30% higher sales as compared to 2022.”, saidBadal Yagnik, Chief Executive Officer, Colliers India

Quarterly housing sales breakup (%)

Source: Industry, Colliers

Note: Percentages are basis consensus of various industry estimates

Data pertains to top 8 cities – Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai & Pune.

Buying sentiment relatively undeterred by repo-rate changes

While home loan EMIs do have a role in swaying the home-buying behavior at the end-user level, the impact is less pronounced on aspirational buyers. At the industry level, a low correlation between home loan disbursements and repo rate changes establishes the fact that residential segment activity in India is more governed by the sense of identification and belonging that comes with home ownership, rather than fleeting financial gains brought in repo rate movements. Buyers with serious purchase intent are likely to stretch their budgets in purchasing homes that align with their desired identity and lifestyle.

Source: RBI, HDFC, Colliers

Further, it is pertinent to note that homebuying is a long-term financial commitment entailing present income levels, expected growth in income levels interspersed with prevailing interest rates and other benefits at buyers’ disposal.  On an average, a homebuyer goes through at least 3 business cycles during the entire tenor of the home loan and the benefits arising out of interest rate movements get rationalized over time.

“Consumers are well aware that repo rates and thus EMI variations even out over the long tenor of a home-loan.  Interest rate trends are cyclical in nature, making end-users less sensitive to fluctuations in interest payments over a 10–20-year period. Homebuyers are more likely to alter the location, stage of construction, ticket size, unit size, preference of developer and bouquet of amenities in the housing society, rather than hasten or delay the purchase decision itself.”, saidVimal Nadar, Senior Director & Head of Research, Colliers India.

Immediate & deeper liquidity benefits enthuse homebuyers

Sentiment buoyancy, in fact, played a pivotal role in the residential segment staying afloat during the peak years of COVID-19 pandemic in 2020 and 2021. In order to negate the likely adverse impact of the pandemic on housing purchases, various state governments stepped in with reduction of stamp duty and registration charges by up to 2%. In fact, homebuyers, nudged by the significant one-time monetary outflow reduction, purchased homes even in otherwise turbulent times marked by financial and economic volatility. Moreover, fence-sitters and investors, saw this as an opportune moment to invest in residential real estate be it for self-use, or for pure-play investment purpose. Even the second homes market witnessed significant traction in the COVID altered world, reaping in multiple advantageous factors such as increased focus on health & wellness, heightened demand for spacious homes and substantial reduction in transactional charges.

Circle rates and property guidance values, akin to the registration charges, determine the timing of property purchases to a large extent. A typical Indian homebuyer is likely to factor in such regulatory changes, more prevalent at the end of calendar or fiscal years and advance or abstain from outright purchases accordingly.

The ongoing festive season is all set to provide a further fillip to residential real estate that has been on an upswing all year. New launches, bumper discounts, tie-ups between developers and home furnishing firms, innovative payment schemes and targeted marketing campaigns, all are the current flavours of the season. The joyous atmosphere is destined to bring an emphatic conclusion to residential real estate in 2023 and lay the foundation for a stronger 2024 as well.

Also Read: Infrastructure upgrade to fuel realty in MMR

The post Festive push to residential real estate momentum of 2023 appeared first on Square Feat India.

Given below are a few exciting offers from leading developers in Mumbai which are for a limited period only.

Pushpam Group

This Navratri, Pushpam Group, a leading real estate player which is into resort homes is offering home buyers some fabulous offers. Home buyers purchasing a property at Balibaug resort homes in Alibaug can enjoy a free 6 nights and 7 days tour package to Bali. This includes Airfare, Visa, stay and breakfast. In addition, buying a property in Balibaug resort style homes with 20+ amenities will help you earn attractive rental income every month, throughout the year.

Dr. Sachin Chopda – Managing Director, Pushpam Group said, “The festive season is the best time for home buyers to invest in a home as developers come up with attractive offers that home buyers find hard to resist. The entire MMR is upgrading with major ongoing infrastructure projects underway that promise to connect the island city with the mainland; reducing travel time and providing better ease of travel to commuters. Areas like Karjat and Alibaug are seeing renewed interest among home buyers. These areas are also attracting people looking at investing in holiday homes, as it provides excellent rental earnings and offers them an asset that will appreciate over a period of time.”

Labdhi Lifestyle

Labdhi Lifestyle, a major player in the Mumbai real estate space is coming up with some exciting offers for home buyers this Navratri. They have put together a special offer ‘Ek Sikka Ghar Pakka’ wherein the buyer just has to pay Re. 1/- and is entitled to own a Labdhi home (conditions apply).

Also, if a customer registers an expression of interest (EOI) he can pay Rs. 10,000/- and avail benefits like car pick up and drop from his residence for his entire family. In addition, he can avail of a total site tour with meals (Lunch) and above all he’s entitled to get a Rs. 50,000 benefit coupon that he can redeem while booking the apartment. Home buyers can avail of this offer for their project Labdhi Gardens at Neral where a 1BHK is priced at Rs. 20.49 lacs, all inclusive.

Kairav Shah, Chief Sales Officer, Labdhi Lifestyle said,“We are in the midst of the festive season fervour and most home buyers wait in anticipation for some exciting home buying offers from developers. Due to property prices on the rise, many home buyers are looking at buying a home in not too distant suburban areas, where property prices are still affordable and yet provide better quality of life. Large ongoing and completed infrastructure projects have improved connectivity, cutting down travel time considerably. Keeping these aspects in mind, many home buyers are flocking to areas like Neral and Karjat in search of their most desired home.”

Also Read: Gudi Padwa is here & builders are back with festive offers

The post <strong>Navratri offers from Developers to sustain housing demand</strong> appeared first on Square Feat India.