Festive season, a big boost for residential real estate

The festive season starting from Ganesh Chaturthi and culminating in Christmas and the arrival of the New Year is considered an auspicious time to invest in residential real estate. The season, a long-awaited time of year when homebuyers decide to make expensive purchases, gives a significant boost to the real estate sector and is characterized by the launch of new projects, combined with a range of advantages to attract a home buyer. This is a time when demand is seeing a shift as home buyers prefer to proceed with scheduled purchases. The need for stability and security, which is becoming a high priority in people’s minds, will also stimulate residential real estate. A major driver of housing demand has been the increasing importance of owning a home, bolstered by consumer confidence in the macroeconomic scenario. The trend of the Indian Christmas season becoming the annual highlight for residential property stems from traditional sentiment and is the right time to invest in wealth-building assets.

Also Read :  Crypto Real Estate Sales Are Officially Here, But Will They Last?

There is a healthy stock of ready to move in and nearing completion stock which will be of great interest over the Christmas period. Current home loan rates are unlikely to compress sustained housing demand as the price range is still within a control line. Rising home ownership among Millennials, helped by higher disposable incomes and a willingness to upgrade to larger, more luxurious spaces equipped with better amenities, has also resulted in a sharp increase in housing demand. We see many home buyers keen to close deals during this auspicious time of year. The market continues to experience end-user driven demand and we are already seeing a trend of more serious buyers completing sales.

According to a recent report, from January to June 2022, the residential sector recorded a 9-year high in sales volume. A defining feature of today’s housing demand is that even millennials are now in the homeownership market as real estate has become the most coveted asset class. With consumer sentiment strengthened and the market buoyant, the real estate sector is optimistic about the future. The sector has performed strongly in recent months and is likely to maintain this momentum. The growth of India’s real estate sector is well complemented by the growth of the business environment and increasing demand for improved lifestyles and better housing. Clients are also increasingly investing in their dream properties, offered by developers that suit their opulent lifestyle and needs.

Also Read :  Developers’ offering guaranteed rental income to property owners is ‘advertising’, unrealistic: Experts

The biggest factor driving people to buy homes today is their experience during the Covid-19 pandemic and lockdown. It has made people reconsider their priorities and hence home ownership has become more important as it means comfort and security. The consumer-driven real estate market is currently experiencing a home buying rally, and today a surge in savings and market stability have encouraged home buyers to take the plunge. The past few months have proven that homebuyer optimism is at an all-time high as customers understand that they have options and are able to make confident purchasing decisions.

Also Read :  4 Predictions for Denver's (Cooling-Off?) Real Estate Market

To sum up, the pick-up in market sentiment on the back of buoyant economic activity makes this season more attractive. However, when investing in real estate, buyers should not only look for attractive offers, but also consider the reputation of the developer and other factors such as location, ability to execute and amenities that the developer has to offer. As we move forward, the industry is set to enter a new phase of steady growth, which bodes well for those looking to invest this season. Real estate is always a smart asset class because it consistently appreciates in value.



The views expressed above are the author’s own.


Source link