Diwali expected to boost real estate sales with a 15-20% rise in inquiries, say developers.

2024-10-30 02:27:33

Experts say that attractive home loan interest rates and cultural preferences for major investments like real estate purchases during Diwali are boosting sales.

Real estate companies anticipate a strong surge in sales this Diwali, as developers and experts report a 15-20% increase in property inquiries and transactions during the festive season.

G Hari Babu, National President of the National Real Estate Developers Council (NAREDCO), pointed out that stable interest rates and favorable conditions are motivating homebuyers to act on their property decisions.

“This Diwali season has seen housing demand pick up, with sales potentially rising by around 15%. The festive atmosphere has created optimism, encouraging more buyers to seize this opportunity,” Babu told Moneycontrol.

Babu also noted that luxury real estate is performing well, as affluent buyers, including HNIs (High Net-Worth Individuals) and NRIs, are investing in upscale properties in cities and popular second-home destinations.

The festive season is expected to sustain demand, he added, suggesting that developers could further attract buyers by offering better financing options, discounts, simplified loan approvals, and reduced stamp duty or registration charges.

Mumbai Sees Inquiries Rise

In Mumbai, developers and market observers report increased inquiries due to the festive season, though incentives remain minimal in the luxury and upper-middle-income segments.

“We’ve seen a rise in inquiries within the luxury segment, but discounts aren’t significant in high-ticket segments. Some developers are offering payment plans or gifts, like phones, in the mid-range market,” a Mumbai real estate broker noted.

Manju Yagnik, Vice-Chairperson of Mumbai-based Nahar Group, shared that Diwali significantly boosts the real estate market, with developers offering unique incentives such as flexible payment plans, which create an attractive environment for buyers.

“Inquiries and transactions generally increase by 15-20% during this season, backed by attractive home loan rates and a cultural inclination toward prosperous investments. Particularly in metros, new premium and mid-segment projects add energy to the market, making Diwali an ideal time to invest in residential and commercial properties,” Yagnik said.

Positive Sentiment in Delhi-NCR

In Delhi-NCR, buyer sentiment has also surged, with a reported 20% rise in residential inquiries.

A report by real estate consultancy InvestoExpert highlights that up to 65% of potential buyers are actively considering real estate investments during the 2024 festive season, compared to 45% last year. The report attributes the 20% growth in sales to developer discounts, government policies, and digital innovations.

Experts point to economic resilience, favorable policies like stable RBI repo rates, Pradhan Mantri Awas Yojana extensions, and infrastructure development as drivers of demand in metro and Tier-II cities.

Vishal Raheja, Founder & MD of InvestoXpert, commented, “The 2024 festive season has brought renewed optimism to homebuyers. With favorable market conditions and improved consumer sentiment, we’re seeing a surge in property inquiries. This period is about both homeownership and long-term investment in a stable, appreciating asset.”

Experts also note a shift toward mid-segment properties priced between Rs 50 lakh and Rs 1 crore, while luxury housing continues to attract affluent buyers, especially in metro areas like Delhi NCR, Bengaluru, and Mumbai. Inquiries in the premium segment rose by about 14%.