The Indian real estate sector has registered phenomenal growth during July – September 2021 despite the pandemic and is confident of growing stronger during this festive season. The sector remains buoyant with the favorable economic and market sentiments propelling the demand for residential and commercial real estate in the months to come.
Festive Season to Accelerate Demand and Sales in the Real Estate Sector
According to the industry report, H1 2021 saw a 67% jump in sales in the residential real estate sector. New launches have also picked up and many realtors are confident that the auspicious season will drive the sector to the new phase.
“Unlike the previous years, this festive season is expected to see a paradigm shift in the psyche of the Indian buyer, who is more cautious, however, smarter than before and plans strategically before investing. Thus, the eyes are laid on the real estate sector, which has seen a significant increase in residential sales despite spiraling COVID-19 cases and is expecting a jump in sales in the festive season. However, in contrast to the previous years of an impulse purchase, this year will be regulative to the pocket strings of the buyers. The trend and efforts by the developers along with the sudden pique in the interest of investors in real estate indicate a positive outlook for the RE industry this festive season,” said Karan Kumar, CMO, DLF Ltd.
The pandemic has also pivoted the focus towards health, wellness, and security and the realization of the importance of owning a home is also driving the demand for residential spaces among customers across locations.
“A large chunk of tenants across India, reverse migrants, aspirational homebuyers, those desirous of moving into organized living spaces and the emergence of real estate as a safe investment along with the emotion of owning a home to ensure the protection of livelihood have been solidified with the pandemic. While this phenomenon is region agnostic it is more pronounced in State Capitals and tier 2/3 cities. Factors like all-time low home loan interest rates, bottomed-out real estate prices, discounts, and government incentives have given wings to homebuyers to fulfill their dreams. This in turn has given a boost to the real estate sector not just in metros but State Capitals and tier 2/3 cities
The lowering of coronavirus cases, speedy vaccination, and emerging workplace trends have also pushed demand in the commercial sector.
“The sector has been riding strong for the last couple of months and is likely to maintain the momentum. The office space segment has been gaining traction from IT/ITES, BFSI, startups, and boutique companies. Amidst the trend of Work from home, hybrid model, flexible office space, and other possibilities various companies are mulling over their expansion plans and bringing the workforce back to the office. This indicates positive signs for the demand for grade-A offices and flexible workspaces,” said Abhishek Pandey, Vice President-Customer Engagement & Distribution, Viridian RED
As per realtors, the demand for residential spaces has increased in tier-2,3 cities as well.
“The real estate market has witnessed a robust performance in the previous quarter and is expected to maintain the growth momentum during this festive season as well. At present, several favorable factors are playing an important role in encouraging first-time home buyers. Various offers and schemes during the festive season bring out the best and the lucrative deals for home buyers. The growth pattern is not only witnessed in the metro cities, in fact, tier – 2 and tier- 3 cities are also getting increased traction,” said Mukul Bansal, Director, Motia Group
Moreover, the customers are also increasingly stepping ahead to invest in their dream properties offered by developers which match their opulent lifestyle and needs.
“Most people consider the festive time auspicious to buy a new home. The revival in market sentiment against the backdrop of accelerating economic activities makes this festive season more attractive. We have witnessed a significant increase in customer queries for our project- Mapsko MountVille. Owning a home is not only fulfilling the immediate personal space need, but it is also a good investment due to appreciation in value over time. We want to reach ground zero for Mapsko Mountville by December 21 and meanwhile will be launching Phase – 2 of the Mountville Project soon,” said Rahul Singla, Director, Mapsko Group.