The end-of-year celebrations, a big boost for residential real estate
The festive season begins with Ganesh Chaturthi and culminates with Christmas, and the arrival of the New Year is considered an auspicious time to invest in residential real estate. The season, which is a highly anticipated time of year when homebuyers opt for big-ticket purchases, provides a significant boost to the real estate sector and is marked by the launch of new projects, combined with an array of benefits to attract home buyers. This is a time when demand sees conversion as homebuyers prefer to go ahead with planned purchases. The need for stability and security, which is a priority in people’s minds, is also a factor that will boost residential real estate. The increased importance of owning a property backed by consumer confidence in the overall economic scenario has boosted housing demand significantly. The trend for Indian holidays to become the annual high point for residential real estate is rooted in traditional sentiment and is a prime time to invest in wealth-creating assets.
There is a healthy stock of move-in ready and nearing completion inventory that will be of great interest during the holiday season. Current mortgage interest rates are unlikely to compress sustainable housing demand, as the price range is still within a control line. Rising home ownership among millennials, supported by higher disposable income and a desire to move into larger, more luxurious spaces with better amenities, has also triggered strong growth in housing demand. . We see a lot of home buyers eager to close deals in this auspicious season. The market continues to see end-user driven demand and we are already seeing a trend of more serious buyers closing sales.
According to a recent report, the residential sector saw a 9-year high sales volume in January-June 2022. A defining feature of current housing demand is that even millennials are now in the homeownership market , as real estate has become the most sought-after asset class. With consumer confidence strengthening and market momentum, the real estate sector has an optimistic outlook for the future. The sector has been doing well for a few months and should continue to do so. The growth of the Indian real estate sector is well complemented by the growing business environment and growing demand for improved lifestyles and better residences. Clients are also increasingly taking the initiative to invest in their dream properties offered by developers, which suit their opulent lifestyle and needs.
The main factor driving people to buy homes today is their experience during the Covid-19 pandemic and the lockdown. This has caused people to rethink their priorities and as a result owning a home has gained importance as it means comfort and security. The end-user oriented real estate market is seeing a resurgence in home buying and today an increase in savings and market stability has encouraged buyers to take the plunge. The past few months have witnessed homebuyer optimism at an all-time high as customers understand they have a variety of options and are able to make buying decisions with confidence.
In conclusion, we can say that the renewed confidence of the markets in a context of dynamic economic activities makes this season more attractive. However, while 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 should experience a new phase of steady growth, which is a positive sentiment for those looking to invest this season. Real estate is still a wise asset class given that it is experiencing steady appreciation.
The opinions expressed above are those of the author.
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