With the festive season on the doorstep, real estate companies are offering a multitude of gifts, from gold coins, cars, iPhones, and club membership to foreign trips to attract homebuyers.
Developers expect a surge in demand during the auspicious occasion of Navratra and the Diwali festival in October. Some developers are offering a five-gram gold coin on every plot booking, while others have lined up gifts like cars, iPhones, free parking space, club memberships, and even foreign trips.
In addition, several builders have announced limited-time cashback offers and interest subsidies on loans. Others are providing discounts up to Rs 2 lakh, stamp duty waiver (where the developer assumes the cost), booking amounts as low as Rs 21,000, and free Ola electric two-wheeler for each booking.
Anilcy Verghese, AVP, sales & marketing, Karle Infra Pvt. Ltd., said customer sentiments are always higher during the festive season (the third fiscal quarter) compared to other quarters. "Data from a three-year historical average for our luxury projects indicates that Q3 generates about 35 per cent of our annual sales. If we compare with the last three years, 2022 has seen a significant increase in the demand during festive season Q3," said Verghese.
A recent survey of Housing.com and the National Real Estate Development Council (NAREDCO) observed that nearly 50 per cent of customers foresee prices increasing with the economy growing, and 47 per cent said they prefer to invest in real estate.
Also, 21 per cent of participants favour investing in the stock market, 16 per cent in fixed deposits (FDs), and 15 per cent in gold. Forty-seven per cent of respondents anticipate real estate prices to rise.
What Real Estate Market Expects During The Festive Season?
Real estate developers and industry experts are optimistic about the upcoming festive season sales. Vivek Rathi, director of research, Knight Frank India, a real estate company, said homebuyers' sentiments in 2022 have remained strong on the back of renewed enthusiasm for home ownership, affordable prices, and a buoyant employment market. Besides, he said, consumer expectation of price rise is indicative of housing demand.
He added, "In this backdrop and favourable base effect, sales across the top eight cities increased by 60 per cent in the first half of this year compared to the same period last year. While there is some moderation in August, given the strong consumer mood, we expect strong sales growth to continue this festive season."
According to the survey, homebuyers are cautious but upbeat about the economic outlook. Seventy-three per cent of respondents believe the economy will keep expanding. Although global uncertainties have dampened the forecast, economic optimism is still significantly higher than in 2020.
Saransh Trehan, managing director, Trehan Group, a real estate company, said the current festive time is favourable for homebuyers and investors to book their dream homes as the economy is showing signs of coming out of the pandemic blues and is slated to grow at around 7-8 per cent in this financial year.