The effervescent festival of Diwali transcends the boundaries of traditional celebration. It marks a significant period of resurgence, ushering in a season of newfound beginnings across various industries, notably the real estate sector. Diwali, celebrated with zeal and lights, brings not just traditional delights but also a surge in economic activities, especially real estate sales. The festival's exuberance intertwines with promising offerings, discounts, and a rise in festive sentiment, catalysing a vibrant spectacle for both home buyers and developers in the real estate market.
BeyondWalls embarks on an illuminating journey into the interwoven narratives of Diwali's impact on the real estate market, navigating the viewpoints of both home buyers and developers during this jubilant season.
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Auspicious Time for Purchases
Diwali, beyond its cultural significance, stands as an auspicious juncture for significant purchases. It's time when the enthusiasm of the festival infuses a sense of good fortune, influencing individuals to consider substantial investments, including new homes. The belief in auspicious beginnings during Diwali holds sway over the decision-making process, steering individuals towards the path of owning significant assets becoming the best time to buy property in India.
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Boost in Real Estate Sales
Reports and statistics during the festive season showcase a significant upsurge in real estate sales. Remarkably, the final quarter, from October to December, marks a significant upswing in the Indian real estate sector.
Colliers India highlights this period as a crucial phase for real estate, with developers providing Diwali discounts, flexible payment options, reduced floor rise charges, and financial institutions luring homebuyers with waivers on processing charges and minor interest rate reductions. It said that housing sales in 2023 are on par with 2022 levels, with the ongoing festive season estimated to drive a remarkable surge, projecting a 20 to 30 per cent increase in sales compared to 2022.
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Lifestyle Aspirations vs. Rates
Interestingly, the festive season witnessed a shift in buyer priorities. It's not merely about rates; the focus has shifted to encompass lifestyle aspirations. The festive cheer prompts buyers to look beyond the monetary aspects, considering investments that resonate with their lifestyle aspirations, marking a shift from merely considering price rates. So, the rising raw material costs, high-interest rates, and mortgage difficulties have failed to shake the confidence of homebuyers to buy a property in Diwali.
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Positive Buyer Sentiment
During the festive season, real estate developers witnessed a remarkable surge in sales, with reported increases ranging between 15 to 29% during Diwali. The Confederation of Real Estate Developers' Association of India (CREDAI) highlighted the attractiveness of projects nearing completion, drawing substantial buyer interest. This surge was notably higher, with a 20-25% increase compared to the previous year, potentially influenced by the reduction in the repo rate.
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Favourable Quarter for Developers
The festive season acts as a catalyst for real estate developers, leading to an exceptionally profitable quarter. Amidst a challenging phase for real estate developers, relief arrived after a tough quarter.
The figures dropped from Rs 50,535 crore to Rs 42,040 crore, signifying a notable decline in sales during this period. The surge in sales and the festive cheer create an ideal backdrop for developers, fostering growth and profit during this period.
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Commercial Real Estate Soaring
Amidst the revival of economic activity, the demand for commercial real estate in India has soared significantly. Notably, retail leasing in the country has experienced a remarkable surge, showcasing a 166% year-on-year growth, surpassing 1.5 million square feet. This surge in retail leasing underlines the burgeoning demand and development within the commercial real estate sector.
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Homebuyers Seeking the Best Deals
The eagerness of homebuyers to capitalise on the best real estate Diwali offers by developers during the festive season is palpable. Recognising the consistent upward trend in residential real estate prices and the surging demand for larger homes, homebuyers are keenly aware of the necessity to secure the best real estate deals.
With developers unveiling festive season sales and attractive offers, the real estate landscape has notably fortified over the past few years. This strengthening market has favoured developers with a firm delivery legacy and product launches aligned with market demands. The ongoing festive quarter is expected to bolster this positive momentum in the real estate sector.
In Conclusion
The Diwali real estate market symbolises a festival of opportunities for both home buyers and developers, offering a window of advantageous prospects and substantial transactions. It's a time marked by increased real estate sales, burgeoning sentiments, and a confluence of aspirations and offerings. The festive season sets the stage for a win-win situation for both home buyers and developers, fostering a landscape of growth, opportunities, and mutual benefits in the industry.
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