As we enter the last quarter of this calendar year, the real estate sector is betting big on the upcoming festive season for revival. It is believed that many home seekers take the plunge during the festivals as it is considered auspicious. This has also been proved time and again by increasing sales chart during Q4 of every year.
“The festive season has historically been the highest point on the sales chart of the real estate industry with Navratri and Diwali considered auspicious for home buying,” says Sarthak Seth, VP and CMO, Tata Realty and Infrastructure Ltd.
Reiterating the same, Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group adds, “As per the traditional belief, festivals and auspicious days have always been preferred in our country for making important investment decisions. Potential homebuyers associate the festive season with security and prosperity making them sanguine about availing lucrative offers available in the real estate market through this period.”
However, the festive season is likely to be different this year. Unlike other years, the number of new launches is likely to remain low due to the ongoing pandemic. To gauge the market sentiments, we spoke to several leading developers across the country. Here’s what they think:
Luxury segment to gain prominence
Betting high on the festive season, Ram Raheja, Director, S Raheja Realty is anticipating a 20% rise in demand for premium properties. He says, “We foresee a promising festive season, especially for the luxury segment. This is backed by various facts including the pent-up demand due to the recent stringent lockdown, the evolution of real estate as the preferred investment class, and the need for a bigger and better space given the massive change in work dynamics.”
Similar views were also echoed by Goa-based Bennet & Bernard Group. “We have already witnessed an increase in the number of enquiries for luxury villas and properties in the quainter villages of Goa,” adds Rodrigues.
Offers galore on ready homes
As new launches take a backseat, developers have started to focus more on their existing inventory. No stamp duty and registration charges, move-in-now and pay later, no GST are some latest offers specifically for ready properties.
“This festive season we are focusing on our nearing possession or ready-to-move-in inventory with an option to move in now and pay later across all our projects; which also solves customer’s current liquidity woes of paying everything upfront,” explains Navin Makhija, Managing Director, The Wadhwa Group.
What’s up for grab?
Like previous years, real estate developers have sweetened property transactions with discounts and offers. Most common being no GST and waived registration and stamp duty charges. Other freebies include consumer durables, home furnishings, gold coins, among others.
However, “small discounts and offers should not drive the decision and buyers should evaluate each offer in terms of the real financial benefit and understand the fine print. They can be considered a welcome add-on for a good property, but freebies should never sway a property purchase decision,” cautions Rodrigues.
Mumbai-based Vijay Khetan Group has introduced a special offer to acknowledge the efforts of medical practitioners, police force, army, municipality workers, government employees and all essential service providers. The offer is on their high-end residential complex where these people can book a home by paying just Rs 1 along with 2% stamp duty.
Commenting on the offerings, Anuj Khetan, Director, Vijay Khetan Group says, “In these challenging times, the COVID warriors are prioritising our safety over their own and extending selfless services to all the fellow countrymen. As an acknowledgement of this indomitable spirit, we have designed this unique offer.”
Final thoughts
So, will real estate fortunes revive this festive season? Well, Prashin Jhobalia, VP Marketing Strategy, House of Hiranandani, is quite optimistic. He says, “We expect the forthcoming festive season to play a crucial role in providing a thrust to the sector. This will be a time when the demand that has been held since lockdown will witness conversion, as homebuyers will prefer going ahead with their planned purchases.”
However, giving a different perspective, Abhishek Kapoor, COO- Residential, Puravankara Limited says, “The big Indian dream of buying a home is a significant decision in one’s life and hence the gestation period is longer. So, unlike retail or other FMCG segments, festive seasons will not alter the sales proportion in real estate. However, there will be a spike in the number of enquiries, which will later materialise into transactions.”
