We all know that the festival season is the most auspicious time for Indians to shop or purchase anything significant. People wait for the auspicious season to end the bargains they’ve been hunting for a long time. The festive season is associated with several traditional values. For some, the festive season is synonymous with ‘good fortune.’ In contrast, for others, it also delivers sweeteners in the form of unique bargains and offers from the market, whether in real estate, electronics, IT, or other sectors.
Specifically talking about the realty sector, the most profitable period for developers and the real estate business is from mid-October to November, due to India’s much-anticipated festival season. It has long been instilled in the psyche of Indians to make significant lifelong investments on auspicious days. Furthermore, the festive season raises everyone’s emotions, prompting people to commemorate the occasion with an important event – a significant lifelong investment. Due to these considerations, developers and marketers are forced to come up with incredible discounts and offers to persuade people to invest in real estate.
The reason behind the perk
Even though luring investors to new developments with incentives and offers has been common in previous years, the pandemic has increased demand for ready-to-move-in houses as more individuals worked from home. As a result, sales of ready-to-move-in houses will rise faster than those of under-construction developments.
This will also help real estate developers who are looking to sell their existing inventory. Some state governments may give stamp duty reductions over the festive season to promote demand in the sector.
Why do people tend to buy the property during the festive season?
Buying a property during the festive season is considered auspicious in India since it brings purchasers good fortune, health, optimism, and pleasure. This season brings appraisals, bonuses, and benefits at work, offering buyers a substantial amount of disposable cash, encouraging them to acquire their ideal house by paying a down payment.
Real estate developers also go to great lengths to cash in on this once-a-year festive extravaganza, providing financial incentives, attractive discounts, and spectacular pre-payment options, causing a frenzy among homebuyers.
Due to low home loan rates, steady property prices, and a growing GDP graph, it is predicted that demand for homes in the mid-segment and luxury categories would be at an all-time high in the following months, after the second Covid wave. Because the cost of buying a property is lowest during the festive season, homebuyers, particularly NRIs, will be eager to realise their dream of owning a home, even if it means extending their budgets to obtain more significant properties.
Impact of the pandemic
This year, the second wave of Covid-19 has resulted in many people realising that the safest place to be during the epidemic is ‘one’s own house,’ resulting in ‘traditional renters’ (the new Millennials) becoming first-time homeowners.
Moreover, the beneficial impact of vaccination has boosted demand for houses, which is likely to surge during the holiday season. So, diverse reasons for different categories of house purchasers; but it is undeniably a good time for real estate — this year, too, the festive season is likely to see ‘above-average sales, boosting housing sales across India.