BM Property: Festive offers drive record home sales

The housing market is poised for continued growth as we approach the festive season, building on strong sales performance throughout the calendar year 2023 and the January-September 2024 period. This time of year is traditionally regarded as auspicious for home purchases, and the sector is expected to see a surge in demand from first-time homebuyers.

According to the latest report from CBRE, homebuying sentiment has remained positive in 2024, with over 150,000 units sold in the first half alone—an increase compared to the same period in 2023. However, rising property prices and global uncertainties may lead potential buyers to carefully evaluate their decisions amid the current market dynamics.

The luxury housing segment, particularly properties priced between INR 2-4 crore and above, continues to attract high-net-worth individuals (HNIs) and non-resident Indians (NRIs). This demand is driven by a desire for higher returns on investments amid global economic uncertainties. Additionally, an emerging segment of upper-middle-class buyers is increasingly willing to allocate larger budgets to enhance their lifestyles, indicating sustained robust activity in this sector.

In anticipation of the festive season, developers are unveiling a range of attractive offers for prospective homebuyers, including EMI waivers, GST exemptions, and free registration and stamp duty. Added benefits, such as modular kitchens, electronics, free car parking spaces, and furnished apartments, are also being offered. To further entice buyers, some developers are collaborating with banks to provide fixed interest rates for a specified period, enhancing the festive appeal.

This festive season is expected to witness a surge in new property launches, consistent with trends from previous years. Given the strong performance in the first half of 2024 and the sector’s propensity to peak during the festive season, both sales and new launches are anticipated to surpass 300,000 units for the second consecutive year.

Despite higher loan rates, homeownership remains a priority for many. Data from the Reserve Bank of India (RBI) shows a significant 40% increase in home loan deployment, reflecting resilience and confidence in the housing market. However, credit providers must remain vigilant in managing Non-Performing Assets (NPAs) effectively, the report stated.