What’s the festive sales trend for homes?

The festive-season October-December quarter is thought to be a strong period for home sales. In the last calendar year, the quarter clocked sales of 92,164 units in the top seven cities. According to Anarock Property Consultants’, the ongoing quarter may see a 25-30% jump from a year ago, which will make it a milestone year for sales made during the quarter—the highest ever. Sales in October have been strong in most cities due to high demand. Despite high property prices, Mumbai municipal region saw 10,607 units registered last month, a 26% jump from a year ago, according to Knight Frank India.

What will drive festive sales this year?

A slew of project launches across cities this season. While the demand for ready homes continues, buyers are also in the market looking to buy into new projects, which come with various discounts and offers during festive seasons. In 2022, over 320,000 units were launched. This year, just between January and September, about 265,000 units have already been launched. The festive season is considered an auspicious period to buy homes but buyers could have other motivations— mortgage rates have finally stabilized after being on the rise for two years. And prices can inch up even further.

View Full Image

What offers can buyers expect this season?

Developers typically offer freebies in the form of gold, modular kitchens and discounts. They also offer easy instalment plans and innovative payment schemes. This year could be different as demand is already high. The focus is expected to be more on flexible payment plans that allow buyers to stretch their budgets for their preferred projects.

What projects are in demand?

There is a growing demand for premium and luxury homes for ₹1 crore and upwards. The January-September period has seen sales of 84,400 homes priced at ₹1.5 crore and above, a 115% rise y-o-y. Mumbai metropolitan region, national capital region (NCR) and Hyderabad lead the luxury sales and the momentum is expected to continue during the festive period. Developers have responded by launching premium homes. These buyers include NRIs, finance professionals, business families, tech and startup professionals.

Can rising prices play spoilsport?

Property prices have been rising in the top cities, with a 10% year-on-year increase in gross average apartment price in the September quarter, according to Liases Foras. NCR has seen the biggest price jump of 22%, followed by 14% rise in Chennai. Rising property prices haven’t significantly dampened homebuyers’ demand, other than in the sub- ₹40 lakh affordable category which has seen lukewarm sales post pandemic. However, analysts believe that if prices continue to rise, it could leave an impact going forward.